When exploring franchise investment opportunities in America, choosing the right state is crucial to the profitability of the business. In this article, we’ll delve into the three best states to invest in the United States: Texas, California, and Florida. From their thriving economy to their tax advantages and favorable business climate, these states offer unique opportunities for investors and entrepreneurs in search of a profitable business. Let’s move forward to find out more.
1. Investments in Texas:
Texas, with its vast territory and entrepreneurial spirit rooted in its culture, presents itself as one of the best states to invest in the United States through a franchise. With adiversified economy spanning from energy to technology to healthcare, Texas offers a vibrant and ever-growing business environment.
In Texas, the variety of franchises available to investors is impressive. With more than 7,000 options across the United States, there are about 3,500 franchises to suit the needs and budgets of entrepreneurs in Texas. These franchises cover a wide range of industries, from housekeeping services to hotel developments.
Franchises in Texas
One of the key aspects to consider when investing in a franchise in Texas is the time needed to acquire the franchise. Legally, the process can take at least 14 days, but on average, investors can acquire a franchise in two to four months if they have the necessary liquidity and intention.
As for potential profits, the revenue of a franchise in Texas can vary depending on the investment, time spent, and business goals. However, there are franchises that, with an initial investment of $120,000 to $150,000, can generate more than a million dollars in gross sales and provide an owner benefit of more than $100,000 per year.
2. Investments in California:
With Silicon Valley as the epicenter of the tech industry and a diversified economy that includes sectors such as entertainment and agriculture, California offers endless possibilities for visionary investors.
In California, franchise investment opportunities are plentiful and diverse. From technology to organic food, professional services and entertainment, there are options for all tastes and budgets.
Although the cost of living in California can be high, there are investment opportunities in low-investment franchises, such as insurance sales and professional accounting services.
One of the key considerations when investing in a franchise in California is the necessary licenses. Obtaining a license can be a long and complicated process in this state, which can affect the time needed to start operations and the associated costs. It is important to select a franchise that does not require complicated licenses or offers strong support for obtaining them.
Franchises in California:
Given these considerations, we selected three low-investment franchise industries without the need for complicated licensing:
Insurance Sales: This industry is very noble and is always in demand, even during recessions or pandemics. There are franchises, such as Estrella Insurance, whose maximum investment is $84,000, including operating expenses.
Professional accounting services: Similar to insurance sales, this industry is low on investment, with franchises ranging from $120,000 to $150,000. Although a certified public accountant (CPA) is needed, once licensed, the business can operate successfully.
Realty: This industry is in high demand in California. Although it requires a higher investment, between $180,000 and $300,000, LLCs can be formed within the real estate investment industry to operate legally.
3. Investments in Florida:
Florida, with its warm climate and thriving tourism industry, stands out as another attractive destination for investors interested in acquiring a franchise in the United States. In addition, Florida has a very active job and career market, with four main areas of income generation: tourism, international trade, agriculture, and science.
Despite this, Florida is relatively inexpensive compared to other states, such as California. For example, the average price of a home in California is $1.5 to $1.8 million, while in Florida the average is $400,000 to $500,000.
On the other hand, Florida has well-known educational centers, which is attractive to investors moving with children who want to study at American universities. And we can’t forget the tax benefits, since in Florida you don’t pay individual income or estate tax.
Franchises in Florida
As for the franchises that work well in Florida, we will mention three specific industries:
Managing short-term rental properties (Airbnb style): Since tourism is one of the fundamental engines of the economy in Florida, this industry performs excellently. One particular franchise we like is “Vacation,” with a low investment of $110,000 to $150,000 and an average gross annual turnover of $1.3 million per franchisee.
Elder Care (Non-Medical): Although it is not a fancy industry, it is very profitable. We recommend this industry to people with humanistic and people-dealing skills. An interesting franchise in this sector is “Homewatch”, with an investment of $91,178 and an average annual gross turnover of $1.8 million per franchisee.
Fumigation: It is important to look for franchises that offer complementary services to maintain activity throughout the year. One option is “Pestmaster”, with an initial investment of $85,000 to $185,000 and an average gross turnover of $600,000.
It’s important to note that some of these industries, such as managing short-term rental properties, may have slow cash flow at first. However, with a good support system, you can get through this initial phase and achieve long-term success.
*Data as of the date of publication of the last FDDs of each franchise
*Values expressed in US dollars
Learn about the three best states to invest in the United States
Texas, California, and Florida stand out as the top three states to acquire a franchise in the United States. With their strong economy, favorable business climate, and wide range of business opportunities, these states offer a conducive environment for visionary investors seeking prosperity in the franchise market.
If you are considering investing in a franchise in the United States, contact us. At Interlink FBC we have a portfolio of +750 franchises from +35 different industries and we know how to help you find the one that best fits your profile.
