Whether you’re an experienced entrepreneur or a newbie looking to open their first business, opening a franchise can always be lucrative. The economy can be hostile to developing your own brand in the best of times, and these are not the best of times.
While each franchise has its own individualized style of management, presentation, and customer service, there are some that are simply more popular than others. Popularity can be a huge boon in this business, so what are the top franchise industries right now?
You might take one mental glance at investing businesses and think “How are they not the most profitable? Why are they #5?” Well, they can be the most profitable, but what makes them #5 and what makes #1 the #1 has nothing to do with profits. It’s about popularity.
And the plain fact of it is that while an investing firm’s franchise is lucrative, and growth in the industry is visible, they are not “popular” in the way some of the other industries are.
Guidant Financial Group and Commercial Capital Trading Group are just a couple of the franchises you might look into buying if you want to get into the investing business. They have seen healthy growth in spite of the economy, and their franchisor agreements are good.
4. Medical Care
Medical care franchises will generally come in two varieties: Family care, and elderly care. While it must be remarked that family care is generally reported to be easier, care for the elderly is observably more profitable.
Medicine is an intimidating field due to its complexity. It also feels rather high stakes; people’s lives are essentially riding on your ability to run things properly.
But that is true in more industries than just medical care. It isn’t wrong to feel that way, but it is deliberate. Franchisors will go to great lengths to impress the importance of their business on you if you choose to go into the medical care industry.
American Family Care is your go-to for family care, while Synergy Home Care is your best bet for getting into the business of seniors. There are plenty of others though, so do your own research beforehand to see which one specifically matches your management style.
Up front, it should be stated that landscaping is not a boom industry right now. If you looked at the stock of any given landscaping company that you could franchise, you would likely see a very marginal increase in value at best. But there’s more to an industry than stocks.
Economists will tell you that any given industry is in one of two states: Boom or bust. In physics, what goes up must come down. But in economics, what goes down must also go up.
Landscaping as an industry is not booming, but really its bust could reverse into a boom any day now. Industry heads are already preparing for a big year, and franchises are being built at a rate that eclipses that of the industry’s last boom.
Your employees for a landscaping franchise will be vastly different than employees of any other franchise on this list. This much might be obvious—how much would a landscaper and an investment banker have in common?
It is for that reason that you should be ready for your workers to unionize. If you are looking for an industry that avoids unions, then look elsewhere than landscaping. Landscaping is skilled manual labor. Unions tend to form around those jobs before any others.
2. Tax Services
It is strange to think of taxes as a year-round problem, but for sufficiently large businesses they are. That has become even more true with the number of stimulus packages, tax credits, and other forms of government aid that has been delivered to businesses in the last year.
Businesses like Liberty Tax Service and Jackson Hewitt have been seeing huge increases in their franchises in the last year. With more stimulus on the way, the need for easy-to-access tax expertise will only increase, leading to more franchises being opened.
Now, is there going to be a tax service franchise built into every Starbucks by 2022? No, definitely not. In fact, quite the opposite. What booms must bust, and there will come a time when tax services are not quite so on the up-and-up.
But that makes it even more important to get a franchise while the getting is good. Establishing yourself as a franchise runner early will make your position more secure should the industry go into a decline. This is true for all industries, but it’s especially true here.
Do not go into this industry if you aren’t looking to outperform others within the same field.
You probably saw this coming, didn’t you? With the exception of medical care, this is the only industry on this list that is relevant no matter the state of society.
Landscaping relies on people placing aesthetic value in their properties. Taxes and investment rely heavily on certain quirks of the economy. But medical care and food matter not because society makes people need them, but because nature does.
Consider a burger business. This business doesn’t need a healthcare professional with eight years of schooling to do its basic functions. It doesn’t need a certified public accountant, nor does it need a skilled manual laborer with union support.
The food industry, whether you are opening a Denny’s or a McDonald’s, is excellent at providing training for every level of its employees. From managers to cashiers, anyone can work at these places. This assures a level of business security that not every industry provides.
The food industry is massive, always growing, and more secure in its practices than any other. It has safety nets for the beginners, and methods of expressing managerial skills for veterans. It is for that reason that it is the most popular and best industry to open a franchise in.