Pick a brand, add water and a few bucks, and Bam!, you’re an entrepreneur. At least, that’s how franchising might look from the outside. Turning a profit is another matter, of course. To give yourself the best chance at success, start with a system that tends to work, then root out the names that give the best bang for your investment buck. Here are the top 20 franchises to start, based on the estimated initial investment, total number of locations (the more the better), store survival rates and hours of training offered. We also included the average royalty rates for each system, though they aren’t comparable on an apples-to-apples basis.

20. Meineke Car Care Centers

Charlotte, N.C.

Provides automotive repairs, focusing on exhaust and brake systems. Centers open at least two years on June 26, 2010 averaged $631,245 in sales for the 2010 fiscal year.

Average initial investment: $262,239

U.S. locations as of 6/26/10: 858

Closures between 6/28/08 and 6/26/10: 193

Hours of training offered: 173

Average royalty rate: 5% of gross revenue

19. Sylvan Learning

Baltimore, Md.

Offers personalized tutoring for children and adults.

Average initial investment: $242,079

U.S. locations as of 1/30/10: 819

Closures between 1/30/07 and 1/30/10: 161

Hours of training offered: 184

Average royalty rate: 8.5% of gross revenue

18. Dunkin’ Donuts

Canton, Mass.

Sells coffee, donuts, pastries and sandwiches. Most locations are in the Northeast, though sales of Dunkin’ Donuts coffee beans in grocery stores are increasing brand recognition around the country.

Average initial investment: $1,066,750

U.S. locations as of 1/30/10: 5,459

Closures between 1/30/07 and 1/30/10: 409

Hours of training offered: 270

Average royalty rate: 7.5% of gross sales

17. Burger King

Miami, Fla.

One of the biggest and oldest fast-food franchises around. Recently launched a Whopper Bar franchise, with a limited menu focused on the Whopper. Traditional stores averaged $1.2 million in sales in the fiscal year ending June 30, 2010.

Average initial investment: $1,468,250

U.S. locations as of 6/30/10: 6,351

Closures between 6/30/08 and 6/30/10: 464

Hours of training offered: 414

Average royalty rate: 4.5% of gross sales

16. AAMCO Transmissions

Horsham, Pa.

The world’s largest chain of transmission specialists, AAMCO has been franchising since 1964. Centers averaged $573,852 gross sales in 2009.

Average initial investment: $266,100

U.S. locations as of 1/30/10: 837

Closures between 1/30/07 and 1/30/10: 161

Hours of training offered: 375

Average royalty rate: 7.5% of gross sales

15. Maaco

Charlotte, N.C.

Franchising since 1972, Maaco repairs and paints damaged cars. Its shops averaged $871,252 in gross sales in the fiscal year ending June 26, 2010.

Average initial investment: $291,326

U.S. locations as of 6/26/10: 434

Closures between 6/26/08 and 6/26/10: 48

Hours of training offered: 160

Average royalty rate: 9% of gross receipts

14. Panera

Richmond Heights, Mo.

These cafés sell fresh bread, soups, salads and coffees. Panera does not sell single stores. Franchisees are expected to open multiple locations, typically 15 over a six-year period. Business has been steady, with only six closures the last two years.

Average initial investment: $1,513,694

U.S. locations as of 1/30/10: 754

Closures between 1/30/07 and 1/30/10: 44

Hours of training offered: 928

Average royalty rate: 5% of net sales

13. Jiffy Lube International

Houston, Texas

The quick-oil-change pioneers offer a wide range of car maintenance services. With over 2,000 total locations, Jiffy Lube serves over 24 million customers a year.

Average initial investment: $258,500

U.S. locations as of 1/30/10: 1,980

Closures between 1/30/07 and 1/30/10: 218

Hours of training offered: 136

Average royalty rate: 5% of gross sales

12. Papa John’s International

Louisville, Ky.

The third-largest pizza delivery chain in the U.S., with over 3,500 company-owned and franchised locations in 50 states.

Average initial investment: $292,812

U.S. locations as of 1/30/10: 2,212

Closures between 1/30/07 and 1/30/10: 283

Hours of training offered: 219

Average royalty rate: 5% of net sales

11. Liberty Tax Service

Virginia Beach, Va.

Offers tax preparation services throughout the U.S. in shopping centers, malls and free-standing stores. Franchisees work only four months a year and do not need prior tax-preparation experience. Liberty trains each location’s staff.

Average initial investment: $63,350

U.S. locations as of 4/30/10: 3,217

Closures between 4/30/08 and 4/30/10: 491

Hours of training offered: 29

Average royalty rate: 14% of gross receipts

10. Jimmy John’s

Champaign, Ill.

Founded in 1983, this gourmet sandwich chain rakes in tasty profits. In 2009 its stores posted average gross sales of $688,313 and a 23% average net profit margin.

Average initial investment: $383,000

U.S. locations as of 1/1/10: 948

Closures between 1/1/07 and 1/1/10: 18

Hours of training offered: 172

Average royalty rate: 6% of gross sales

9. Edible Arrangements International

Wallingford, Conn.

Delivers bouquets of fresh fruit that look like floral arrangements. Opened in 2001, Edible Arrangements now has 800 locations. Most franchisees operate delivery services and storefronts that offer smoothies and fruit salads.

Average initial investment: $223,057

U.S. locations as of 1/1/10: 783

Closures between 1/1/07 and 1/1/10: 39

Hours of training offered: 104

Average royalty rate: 5% of gross sales

8. Sport Clips

Georgetown, Texas

Offers haircuts and styling products for men in a sports-themed environment. Over 20% of franchises are located in Texas. Sport Clips outlets averaged $81,400 in net profit in 2009.

Average initial investment: $215,050

U.S. locations as of 1/1/10: 650

Closures between 1/1/07 and 1/1/10: 40

Hours of training offered: 153

Average royalty rate: 6% of net sales

7. Great Clips

Minneapolis, Minn.

This hair styling and hair care products chain, in operation since 1982, has 3,000-plus locations–the largest of its kind in the U.S.

Average initial investment: $155,625

U.S. Locations as of 1/1/10: 2,794

Closures between 1/1/07 and 1/1/10: 307

Hours of training offered: 87

Average royalty rate: 6% of gross sales

6. Merry Maids

Memphis, Tenn.

A unit of ServiceMaster, Merry Maids has offered cleaning services to homes since 1980. Franchisees can start one for as little as $52,550 (up to 5,000 homes in your market). Prices increase with the size of the market, up to $62,550 for a full-size market with over 10,000 homes. (ServiceMaster’s other franchises include pest control service Terminix, furniture repair service Furniture Medic and cleaning service ServiceMaster Clean.)

Average initial investment: $61,500

U.S. locations as of 1/1/10: 711

Closures between 1/1/07 and 1/1/10: 68

Hours of training offered: 55.25

Average royalty rate: 6% of gross sales

5. Papa Murphy’s International

Vancouver, Wash.

Sells freshly made, uncooked pizzas that customers bake at home. Located mostly in California, Oregon and Washington. Founded in 1982.

Average initial investment: $287,940

U.S. locations as of 1/1/10: 1,136

Closures between 1/1/07 and 1/1/10: 65

Hours of training offered: 275

Average royalty rate: 5% of net sales

4. McDonald’s USA

Oak Brook, Ill.

Now with 12,381 franchises in the U.S., McDonald’s offers instant brand recognition. Closure rates are minuscule and have declined each of the last three years, thanks to a renewed focus on cleanliness and healthier food options.

Average initial investment: $1,471,100

U.S. locations as of 1/1/10: 12,381

Closures between 1/1/07 and 1/1/10: 468

Hours of training offered: 855

Average royalty rate: 4% of gross sales

3.. Kumon North America

Teaneck, N.J.

Offers after-school tutoring in math and reading, geared mainly toward high school students, based on worksheets designed by founder Toru Kumon (200 worksheets per level with over 20 levels per subject). Founded in 1958, Kumon is located in 50 states, predominately in California, New York and Texas.

Average initial investment: $90,894

U.S. locations as of 1/1/10: 1,293

Closures between 1/1/07 and 1/1/10: 185

Hours of training offered: 415

Average royalty rate: $16-$32 per student per month

2. 7-Eleven

Dallas, Texas

The largest convenience store franchise in the world has more than 6,200 locations (4,685 franchised). More than a quarter of its franchises are in California, so there’s room to grow in the US.

Average initial investment: $389,378

U.S. locations as of 1/1/10: 4,685

Closures between 1/1/07 and 1/1/10: 215

Hours of training offered: 231

Average royalty rate: 49% of gross profit

1. Domino’s Pizza

Ann Arbor, Mich.

The pizza delivery stalwart boasts low overhead and an expanded menu including pasta and sandwiches.

Average initial investment: $253,950

U.S. locations as of 1/1/10: 4,525

Closures between 1/1/07 and 1/1/10: 557

Hours of training offered: 1,308

Average royalty rate: 5.5% of gross sales

The Top 20 Franchises To Start

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