One path towards financial wellness which has worked for many is investing in a franchise. Franchising a business expansion strategy. This strategy relies on a franchisor licensing their brand and business model to a franchisee, who does business under the franchisor’s name.
By buying into an established business you can start to generate profits sooner by using a proven business model. If you have always wanted to own a restaurant or food truck, but don’t know where to start then franchising is a great option for you. In this article we are going to discuss what is the best franchise to own and why.
Best Franchises to Invest In
Investing in a franchise is a great way to create and grow wealth. Deciding which franchise to invest in can be a difficult decision because when it comes to choosing a franchise to invest with there are many options. We put together this list to help you decide which franchise is the best franchise to own for you.
Dunkin’, Denny’s, McDonalds, Baskin-Robbins, and Jackson Hewitt are all examples of very successful popular franchises which can be found nationwide. Some categories for you to consider investing in includes food franchises, senior care, car wash, ice cream, gyms, and tax services. There are many different kinds of franchises to choose from, but which is the best?
The Most Profitable Franchise Categories
When it comes to generating a profit, there are three categories of franchises that stand out in regards to profitability.
Food franchises are the most popular franchises. When looking at the numbers, the reason why is clear. Eight out of ten of the most profitable franchises are food businesses. Why are food franchises so successful? First of all, everyone loves food. There is an existing market for fast food, icecream, tacos, burgers, and more.
For many investors food franchises can be a huge money maker. Burger King, Pizza Hut, and Baskin-Robbins are several internationally famous franchises which make a lot of money. Everybody loves burgers, so why not invest in a burger business? Zac’s Hamburgers is a popular burger spot which has franchising opportunities available.
Although travel services have taken a huge hit this year due to pandemic related travel restrictions, it still remains one of the most profitable categories of franchise to invest in. Hotels and car rental companies are examples of travel service companies. Popular travel franchises include Marriott, Intercontinental, and Choice hotels. Car rental services are also a popular franchise in the travel sector. Even with travel being restricted, people will continue to travel for work and travel services are a good investment.
There is a large demand for home services and home service franchises tend to do very well in the books. Home maintenance, cleaning, and lawn care businesses have the benefit of having an endless market of customers. When it comes to home care, many homeowners prefer maintenance workers with a good reputation for honest and ethical services. Home services franchises have the benefit of having an existing track record and reputation which helps homeowners feel confident hiring the company.
Private businesses require cleaning services too. Merry Maids is an example of a hugely popular nation-wide cleaning company franchise. HVAC and other maintenance work on office buildings is another kind of franchise which is a smart investment. Tax services are an example of a business service which makes for a profitable franchise. H&R Block is a tax service franchise which is very popular and profitable.
Things to Consider When Choosing a Franchise to Invest In
Any franchise that you invest in could be profitable and change your life if you are passionate and invested in the business. We recommend choosing a franchise category that interests you. There are more factors to consider when choosing the best franchise to own such as the size of the franchise, what royalties and fees the franchisor charges, and what potential growth prospects look like in that business category.
Green Flags for Franchise Investments
This list of “green flags” for franchise investments are signs that the franchise is a good investment. Look for the following things when considering a potential franchise investment:
Repeat customer traffic
Does the business have regular traffic flow and keep customers coming back for more? Fast food restaurants, gyms, and other franchises with repeat customers are a great investment.
Profitable during the pandemic
During the unprecedented global pandemic that took the world by storm over the last year many businesses suffered. If the franchise continued to be profitable and keep their doors open throughout the pandemic, this is a good sign.
This one kind of goes hand in hand with repeat customer traffic. If the franchise has die hard fans who “can’t live without it”, then you have a good chance of success with your investment.
Does the franchise have an actionable plan for expansion? Investing in a franchise early can help maximize your profits. Stay clear of investing in businesses which do not have a growth plan for the future.
How much support the franchisor offers the franchisee is another big factor on how successful a franchising effort can be. Having adequate support from the franchisor can help the company grow across the board. If the franchisor is not communicative or supportive of their franchisee’s then they are not a good investment.
Some businesses have brand exclusive technology. If the company uses patented, exclusive tools, technology, or methods then it may be an opportunity to corner a market. By working with a franchise, you may even be able to get a discount on the latest technology in the field.
If you are interested in investing in a franchise, but do not know where to start then consider what your goals are for investing. Food franchises are the most profitable and the most popular type of franchise. If you think that investing in a burger business might be down your alley, then check out the franchising options that Zac’s Burgers has available. Benefits of investing in the expansion of Zac’s Burgers include a rapidly expanding market, sustainable business model, and access to multiple revenue streams. There is unlimited growth opportunity when you become a franchisee or Zac’s Burgers