Best Franchise Opportunities in Tennessee

There are tons of franchise opportunities out there, but probably only a handful that make sense to you. If you’ve been bitten by the franchise bug, you’re probably starting to read FDDs from different companies to compare territory rights, royalty structures, and more. 

A franchise needs to have certain characteristics to really be a good possibility when it comes to a multi-unit approach. Although the article below is a great start to get embarked on your franchise-finding journey, as a franchise consultant, I help aspiring and existing entrepreneurs find the businesses that are right for them. 

Tennessee is one of my favorite states for franchise ownership, but also to just go and hang out. 

Tennessee practically has it all, and I try to go once per year (since I’m not too far away in North Carolina. However, the list of the best franchise opportunities in Tennessee is more of a selection of some of the options out there rather than a full list. 

Here’s what you need to know about Tennessee’s business opportunities. 

Crumbl Cookies

There’s a reason why Crumbl Cookies is so high up on my list of the best multi-unit franchise opportunities in Tennessee. In fact, the franchisor also made it up high on my equivalent list for Arizona. 

Here are some great things about the franchisor in general, but also why it would work well in Tennessee. 

Crumbl has something that’s extremely appealing to its concept – and that’s besides its amazing cookie selection. Not only does the franchisor rotate the menu which keeps it fresh and interesting, but the product is so perfect for Instagram that the customers pulling out their phone is almost the best marketing that can happen. 

Sweet tea is not the only sweet thing that’s appreciated in the south, and premium cookies will be a fan favorite when it comes to community events, football tailgates and more. 

Suburban markets are probably where I would personally choose to set up these locations (think Franklin and Germantown), as there are tons of families. It makes it an easy choice for families wanting to get out of the house and have a special moment with their kids. 

Nashville and Chattanooga’s populations, among others, are booming, and you can get in and secure the right location for this franchise. 

However, one challenge is that the real estate in the state is heating up faster than the cookie company you’re trying to put in there. Crumbl is definitely an opportunity that requires the right location in order to get the highest amount of customers you possibly can. 

SportClips

If there’s one thing men can usually agree on, it’s how much they love sports. Now you’re not just able to own a franchise that generates money, but you can own a place that taps into men’s innate desire to watch sports for the better part of the day. 

Sports and haircuts. That’s what the franchise offers. As a consequence, because hair tends to grow at a pretty consistent rate, you’re also getting consistent cash flows from this predictable business. The good thing is that whether or not there’s a recession, people still have to get haircuts. 

What I, as a franchise consultant, like about this business is how it’s able to offer a very reliable semi-absentee model, and the unit economics to back it up. Even when there’s a Titans game on, hair is still growing! 

Tennessee’s mixture of blue-collar markets and suburban sprawl means there are tons of places where this business could thrive. If it was me opening up a location like this, I would particularly look into Murfreesboro, Clarksville, and Knoxville. These are locations where family’s at the centre, but sports may just come ahead of family at times. 

Tennessee’s cost of living may still be competitive compared to states like Washington or New Jersey. However, you’ll need to know how to get the stylists to your location in the first place. 

The good thing about this business is that men won’t even need to come up with some crazy excuse to watch sports; all they have to do is go and get a haircut. 

Jersey Mike’s

Jersey Mike’s is in a different league when it comes to sandwiches. Not too long ago, I decided to visit a new sandwich place that opened up near my house, and not only was it more expensive than Jersey Mike’s. Jersey Mike’s is also considerably better. 

Some food concepts are pretty bullet-proof and create raging fans, while others are lackluster places you wouldn’t go back to. In my opinion, Jersey Mike’s is definitely in the better bucket in terms of generating raging fans. 

Southerners love a good sandwich that’s made right in front of them, which is one of the reasons Jersey Mike’s a great place to consider. You’ll be golden if you’re able to snap up a location that’s either near a university or another high-traffic location like an office park. Johnson City and Jackson would be prime locations I would personally look for if this is the avenue you choose to go down. 

Hydrate IV Bar

IV therapy, wellness, and vitamins. These have become top of mind for the many health-conscious individuals that are emerging, and Tennessee is no stranger to this concept. 

Even if it’s a bit of a niche concept at this time, it’s a business concept that’s taking off at a similar rate as Crumbl’s growth. That’s despite the fact that the two businesses have very different buyer personas. 

Hydrate IV Bar blends wellness-focused therapies with hangover cures and does so in a very appealing environment. You’ll get that feel-good feeling when you go to one, so customer service is everything. 

The people best-suited to run these franchises are those that would also use their services on a regular – health conscious and more. With the business’ strong margins, you’re helping something sprawl that will help people feel better. 

Trendy neighborhoods like 12 South and The Gulch are places where I would focus on opening these multi-unit franchise locations first. You’ll be a very attractive option to both people that had one too many the night prior and the health-conscious crowd. 

Factors to consider

Like any other state, Tennessee has some specific factors you’ll need to consider when choosing the franchise that’s right for you. 

For instance, it’s important to consider the labor market of the place you’re hoping to set up shop. It’s not impossible to hire in Tennessee, but it’s definitely competitive, and the wages are being pushed up as a consequence. 

The demographic targeting is another thing to keep in mind. The state’s very diverse with urban centers, college towns, and more. An IV therapy clinic, for instance, is better suited in an area where people have more money than in a college town. The same thing won’t work in Cookeville compared to Nashville. The franchise concept you’re going for should fit the target demographic of the people living around your franchise’s location. 

Scalability and support are crucial. One of the biggest advantages to opening up franchises is the support provided by the franchisor, and that’s no different if you call Tennessee home. Some businesses create ripe conditions for semi-absentee owners while others don’t. When you’re setting up shop in Tennessee, you’ll also need to lean on the franchise (they often will even have to approve the location you’re considering).