who else loves having a business ?

Thanks to https://smallbiztrends.com/2022/11/most-profitable-franchise.html

most profitable franchises

There are many factors to consider when evaluating possible franchise opportunities. Profitability is one of the most important considerations. And there are plenty of options in various industries. Here’s a guide to some of the most profitable franchise businesses across sectors.

Are Franchises Profitable?

A franchise business model can certainly be profitable, but the exact numbers depend on the franchise opportunity. These businesses generally provide proven systems that can increase the chance of profitability. But various factors, from your location to competitors, can impact your earnings.

 

How Do You Choose a Profitable Franchise?

If you’re thinking of starting your own business, buying into a franchise system may be a profitable option. Here are some ways to evaluate the most profitable franchises:

  • Evaluate startup costs: The lower the startup costs, the faster you should be able to turn a profit. Look into everything from the initial franchise fee to location development costs to determine what each option costs.
  • Dig into potential earnings: Request a franchise disclosure document from any system you’re considering. This document includes a section on average revenue, so you can determine what franchise owners generally earn in what time frame.
  • Consider your local market: Some profitable franchises only earn significant revenue in specific areas. If you want to start a business in a specific geographic area, focus on options that may resonate with local consumers.
  • Research competitors: Competition is another factor that can impact profitability. Consider how saturated the local market for a specific type of business is to determine if there’s room for a new player.
  • Think about your goals and interests: You’re more likely to work hard enough to turn a profit if the business idea aligns with your goals and interests. If you’ve always wanted to start a food business, stick with that niche to stay motivated. Those who want a home-based franchise are likely to work hardest for a brand that offers this feature.

 

Most Profitable Franchises

Franchises can provide many financial benefits since they offer a proven business model and tons of support for business owners. Some tend to be more profitable than others. Here are a few that offer consistently high revenue.

1. Anytime Fitness

Anytime Fitness is a popular gym brand with a low-cost investment and high revenue potential. The brand brings in billions in worldwide revenue. Earnings mainly come from monthly membership fees, which provide predictable monthly income. But there are other ways to generate revenue as well, like personal training. The initial investment ranges from $381,575 to $783,897.

2. McDonald’s

McDonald’s franchise program is one of the most established in the fast food industry. The worldwide brand recognition, loyal customer base, and solid reputation for support make this a top option. There are even international and multi-unit franchises available. Most McDonald’s franchisees start by purchasing an existing location from McDonald’s or another franchise operator. So costs vary widely, but you can start with a business that already has an established customer base.

3. UPS Store

The UPS Store is a retail business that offers shipping, printing, and related services to individuals and businesses. Locations don’t require much space or staffing. So overhead is generally low enough to achieve profitability quickly. There are a variety of location types with varying costs. Traditional stores range from $240,959 to$508,472, while rural locations can cost between $206,423 and $459,136. There are also store-in-store locations available for between $80,357 and $216,148.

4. Jersey Mike’s Subs

Jersey Mike’s is a sub shop that is one of the fastest growing franchises in the food service industry. The company’s locations are small and don’t require a huge staff. The initial investment ranges from $144,668 to $786,233.

5. Dunkin’

Dunkin’, formerly Dunkin Donuts, offers donuts, coffee, and various breakfast items at fast-casual locations. The menu items are fairly low cost, so they offer high-profit margins. Locations can also be small or even combined with other brands or locations. New franchises cost between $526,900 to $1.8 million.

6. Sport Clips

Sport Clips is one of the top brands in the men’s hair care industry. The business can be fairly small and doesn’t require tons of large equipment or expensive inventory. So ongoing costs can be kept fairly low. The upfront investment ranges from $266,300 to $439,500.

7. 7-Eleven

7-Eleven offers strong brand recognition worldwide and a consistent business model that may offer financial stability. The business provides a variety of products to appeal to people across demographics. The exact costs vary by state and circumstances. However, 7-Eleven covers many of the most expensive elements like the physical location.

8. Papa John’s

Papa John’s is one of the most successful pizza franchises, with more than 5,000 locations across the world. Locations can be fairly small, and staffing costs are generally minimal. Startup costs are estimated around $130,120 to $844,420.

More Profitable Options for Future Franchise Owners

If you’re interested in opening a profitable franchise, choosing one that is popular with young people or that has room to grow may be ideal. Here are some opportunities that are low cost, appeal to a young audience, or have room to grow.

9. Mathnasium

Mathnasium is a learning center for kids that specializes in mathematics. Tutoring and educational businesses like this have gained significant popularity in recent years. And there are multiple revenue streams available. The franchise’s total initial investment ranges from $112,860 to $148,655.

10. JAN-PRO

JAN-PRO is a cleaning and disinfecting business. The demand for these types of janitorial services has grown in recent years. And it’s likely to be a fairly consistent money maker going forward. The company also offers a flexible startup model. So you can begin small and grow as you gain more clients and resources. Startup expenses can be as low as $1,250 to $50,000.

11. Dream Vacations

Dream Vacations is a home-based travel agency franchise. This may sound like a declining industry, but there are still plenty of businesses and groups that require travel planning assistance. And there’s not as much competition in this field as there once was. The standard franchise fee to get started is $10,000, but various discounts are available.

12. Jazzercise

Jazzercise is a workout class brand that offers multiple franchise models. There’s a class owner franchisee, who runs the business side, and a teacher franchise, who buys into the business but simply runs the classes. The Jazzercise franchise fee is just $1,250. And other expenses like music royalty fees are minimal.

13. uBreakiFix

uBreakiFix is a chain of phone and device repair shops. This is an incredibly in-demand service that is likely to remain so for the foreseeable future. Multiple store types are available, so startup costs and earnings vary. However, initial expenses generally range from $98,350 to $303,000.

14. Taco Bell

Taco Bell is one of the best franchise opportunities in the fast food industry. And opportunities are likely to continue growing since the brand has long targeted young consumers through a well-built marketing strategy. There is a hefty initial investment of between $1.2 and $2.6 million. But a franchise owner in the right market can earn that back and more with significant ongoing revenue.

15. Merry Maids

A Merry Maids franchise can be run mainly from home, which keeps initial costs low and can increase the chances of financial success. There’s also a high demand for cleaning services from both residents and businesses. And there’s potential to grow your business over time by increasing the size of your team so you can accommodate more clients. The initial investment, including a franchise fee and other expenses, usually costs around $94,480. And average gross sales across franchises fall at nearly $2 million.

16. Mac Tools

Mac Tools is a mobile franchise that sells tools out of a truck. This keeps startup expenses and ongoing costs relatively low, increasing the chances of achieving high profitability. The company also supports various important factors in running your business, from inventory buying power to technology. There’s an initial franchise fee of around $8,000. And total startup expenses usually fall between $109,000 and $250,000.

What Is the Most Profitable Franchise to Own in 2022?

The exact profits of each franchise vary widely by market, location, size, and various other factors. So there isn’t a way to guarantee or predict specific profits. However, one of the most successful franchise businesses for many years has been McDonald’s. And the business continues to provide steadily profitable opportunities to franchisees around the world in 2022.

Can Owning a Franchise Make You Rich?

There is no way to guarantee profits to prospective franchisees. However, there are plenty of opportunities that can provide consistently high profits to those willing to research the right opportunities for their market and work hard to grow their businesses.

What Franchises Can You Open for $10,000?

There are lots of franchises that offer franchise fees around $10,000 or less. However, overall startup costs often exceed this amount. Home-based franchises are often the least expensive to start. A few examples include JAN-PRO, Dream Vacations, and Jazzercise.

Image: Envato Elements

This article, “16 of the Most Profitable Franchises” was first published on Small Business Trends

Enter your Email Address

Leave a Comment

Your email address will not be published. Required fields are marked *