1851

While major start-ups grab headlines and local “mom-and-pop” shops thrive in their small communities, many smart entrepreneurs looking to start something new in the current landscape are shifting toward franchising. The business model is an attractive growth strategy for founders, and it also presents a very clear path for building substantial, long-lasting wealth.Franchising comes with more rigid guidelines, but investing in a franchise does not mean entrepreneurs have to abandon their ideas or drive. Rather, they can apply their ambition to an already-proven, established model, giving them a leg-up in the marketplace.&nbsp;<h2>The Numbers Tell a Compelling Story</h2>According to&nbsp;<a href="https://www.investopedia.com/articles/personal-finance/110215/franchise-vs-startup-which-way-go.asp?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-opportunities-build-long-term-wealth-2730189" target="_blank" rel="nofollow">Investopedia</a>, about 50% of startups fail within five years. Only 4% of franchises close within that time frame. This isn’t a coincidence; the numbers represent the benefits associated with using an established system rather than trying to reinvent the wheel.When following the systems in place, many franchisees will also secure a return on their investment more quickly than they would have with an independent startup. Things like brand recognition and grand opening marketing support can propel a business forward in the early days, allowing for a jump-start in revenue growth.<h2>Other Financial Considerations</h2>In addition to success rates and ROI, being a part of a franchise can provide other wealth-building considerations that individual business ownership cannot.&nbsp;Most notably, franchisees generally benefit from collective buying power. Whether it’s a national marketing fund or large-scale contracts with key suppliers, pooling resources leads to economies of scale, allowing owners to experience more impact per dollar spent and secure more favorable purchase terms.This translates directly to higher profit margins and more money in the pockets of the franchisees.There are also financial perks to widespread brand recognition and trust. When buying into a major network like that of&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-dunkin-franchise-costs-fees-profit-and-data-2720835">Dunkin’</a> or&nbsp;<a href="https://1851franchise.com/taco-bell-franchise-deep-dive-2720788">Taco Bell</a>, a franchisee may need to raise awareness about their new presence in the specific market, but they will save substantial time and money by bypassing the costs associated with building a new brand reputation from the ground up.<h2>The Multi-Unit Advantage</h2>Franchise ownership offers a clear path to wealth creation, and with multi-unit or multi-territory investments, this trajectory can be accelerated even further. After mastering the operation of a single location, franchisees can systematically expand throughout their market and even into additional markets.Because franchising offers clear-cut systems and processes, replication across locations is even more straightforward than it would be with a startup-type business.<h2>Choosing the Right Franchise Investment</h2>Not all opportunities are created equal. Smart investors focus on several key factors when evaluating an opportunity. Be sure to look at market demand, the strength of the existing systems and network, initial investment requirements, ongoing costs, and territory rights.&nbsp;Not every franchise opportunity will be right for every person, and that’s okay. Finding the best fit for you will ensure a more stable investment with better longevity, putting you in a position to build real wealth.For more information on buying a franchise, check out these related articles on 1851 Franchise:<ul><li><a href="https://1851franchise.com/do-franchise-brokers-really-help-what-to-know-before-you-commit-2730311#buying-a-franchise">Do Franchise Brokers Really Help? What To Know Before You Commit</a></li><li><a href="https://1851franchise.com/common-mistakes-first-time-franchise-buyers-make-and-how-to-avoid-them-2730260#buying-a-franchise">Common Mistakes First-Time Franchise Buyers Make (And How To Avoid Them)</a></li><li><a href="https://1851franchise.com/home-based-franchises-arent-just-convenient-they-can-be-surprisingly-scalable-2730224#buying-a-franchise">Home-Based Franchises Aren’t Just Convenient — They Can Be Surprisingly Scalable</a></li></ul>

Design with blue background, five buildings, coins and dollar signs

Why More Entrepreneurs Are Betting on Franchising to Build Long-Term Wealth

1851 Franchise

Smart businesspeople are trading the risks associated with starting something of their own for the stability of a proven franchise model and the support of a committed system.

Why More Entrepreneurs Are Betting on Franchise Opportunities To Build Long-Term Wealth

franchise-opportunities-build-long-term-wealth

TruBlue Home Service Ally

Step-by-Step: What the First Year of Owning a TruBlue Home Service Ally Looks Like

step-by-step-what-the-first-year-of-owning-a-trublue-home-service-ally-looks-like

Comfort Keepers

Why Boston Is a Prime Market for Comfort Keepers® Franchise Growth

why-boston-is-a-prime-market-for-comfort-keepers-franchise-growth

Mosquito Hunters

Hunters-Humbug Franchise - Happinest - Why Invest? - 1851 Franchise

Top 5 Reasons to Invest in a Pest Hunters-Mosquito Hunters-Humbug Holiday Lighting Franchise in 2026

why-invest-hunters-humbug-franchise-happinest

SweatHouz

SweatHouz - SWTHZ - Private Suite - Florida's Gulf Coast - 1851 Franchise

The Private-Suite Bet Driving SweatHouz Across Florida’s Gulf Coast

sweathouz-franchise-florida-gulf-coast-ethan-lewis-brian-massoll

Children's Lighthouse

Children’s Lighthouse Celebrates Milestone With First Indiana Franchise Agreement

childrens-lighthouse-celebrates-milestone-with-first-indiana-franchise-agreement

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

FAT Brands Nears Bankruptcy as Creditors Demand Repayment of $1.3 Billion Debt

fat-brands-nears-bankruptcy-as-creditors-demand-repayment-of-13-billion-debt

Callaway Sells Majority Stake in Topgolf to Private Equity for $770 Million

callaway-sells-majority-stake-in-topgolf-to-private-equity-for-770-million

Keith Sizemore headshot, Radiance Holdings

Radiance Holdings Names Keith Sizemore Chief Development Officer

keith-sizemore-radiance-holdings-cdo

Jobseekers Are Flocking to “Unglamorous” Jobs — And Home Service Franchises Could Benefit

Jobseekers Are Flocking to “Unglamorous” Jobs — And Home Service Franchises Could Be Poised To Benefit

jobseekers-shift-boosts-home-service-franchises

The future of recovery studios, health and wellness franchise

The Future of Recovery Studios: Why Wellness Franchises Are the Next Fitness Boom

the-wellness-boom-recovery-franchises-future-fitness

Photo of group of dogs standing together in day care facility

Top Pet Boarding and Day Care Franchise Opportunities for 2025

top-pet-boarding-daycare-franchises

Empowering Entrepreneurs: Resources and Franchises for Minorities

empowering-entrepreneurs-resources-and-franchises-for-minorities

The Top 15 Pet Wellness and Vet Care Franchises for 2025

top-pet-wellness-franchise-opportunities

Top Education Franchises To Consider for 2025 - 1851 Franchise

Top Education Franchises To Consider Investing In for 2025

top-education-franchises-investment-opportunities

image of jerome hanway from right at home Las Cruces, New Mexico 1851 franchise franchisee spotlight

Jerome Hanway Is Building His Right at Home Franchise Around His Mission To Serve

right-at-home-franchise-las-cruces-jerome-hanway

A Practical Playbook: Who To Call First When Franchising Your Business

franchising-your-business-who-to-call-first

image of stephen westerman and matthew westerman, owners Fort Walton Beach Two men and a junk truck

Twin Brothers Move From Managers to Owners with New TWO MEN AND A JUNK TRUCK Franchise on the Gulf Coast

twin-brothers-two-men-and-a-junk-truck-fort-walton-beach

1851 Franchisee Spotlight graphic with photo of Eli Cohen, Layne's Chicken Fingers logo

C5 Restaurants Grows its Texas Footprint with 40 Layne’s Chicken Fingers Locations Planned Statewide

eli-cohen-laynes-chicken-fingers-texas

Paris Baguette Welcomes Zac Sulma as New Chief Operating Officer

new-coo-zac-sulma

Why More Entrepreneurs Are Betting on Franchise Opportunities To Build Long-Term Wealth

MORE STORIES LIKE THIS