There are many reasons why prospective business owners might want to consider franchising. But what are the top franchises to own? Which franchise industries will likely grow over the next five to ten years, and how much time and money will the franchise require over this period of time?
Of course, there are various factors when it comes to figuring out the best franchising opportunities for you in particular. It is important to think about demographics and market trends before researching franchising models that may make the most sense.
Qualities To Look For
Some entrepreneurs and business owners may already understand franchising to some extent, but what qualities should you be looking for when it comes to buying a franchise? You may have a personal connection with a company or brand, for example, but that certainly doesn’t mean that you should think about getting your own franchise of their business.
First and foremost, you should find a franchise with startup costs that fit your budget. If your net worth is $500,000, and it costs at least a minimum of $2 million to franchise a particular business - it’s time to start thinking about more affordable opportunities. Many top franchise opportunities don’t have as much of an upfront cost as you may believe.
It’s also important to recognize that a franchise that costs next-to-nothing to set up might not necessarily be a lucrative opportunity, either. Ideally, you will have at least $10,000 to invest, upfront, in a franchise. Many popular franchises require at least several hundred thousand dollars as an investment, so keep this in mind when browsing top franchise industries.
Second, it’s also essential to think about whether franchisees have a solid support system. No one wants to become a franchisee to find that the parent corporation doesn’t offer much in terms of marketing, educating their franchisees on new opportunities, or adapting to market conditions.
Lastly, it’s also important to determine whether you could maintain a cultural alliance with the franchisor. You may find that you are less motivated with your business if you feel like the franchisor doesn’t represent your values, ideas, or principles.
Top Franchise Industries
You may understand now how to spot some of the top franchises to own in your area, but what industry should you consider? Will you be using your past experience and skills, or will this be a completely new sector for you?
Here are some of the top franchise industries for 2021 based on current market trends.
Cleaning Services
One of the advantages of starting a cleaning service is that there are a ton of options with a less than $15,000 minimum investment. If you have a qualified sales and marketing team, it also means that you will likely be able to secure some accounts - given the fact that there is such a tremendous demand for cleaning services. In fact, in the United States alone, there are over 3 million people working in this industry.
It is also a “non-cyclical” industry, which means it can withstand most economic downturns. The COVID-19 pandemic has also made more people aware of just how integral good cleaning services are for office spaces and other commercial buildings.
Home-Based Opportunities
If you are examining the top franchise opportunities solely through a brick-and-mortar lens, you may end up missing out on some of the best ways to make additional income. Many successful franchises can begin right at home.
There are two options when it comes to home-based franchises: you can choose one where you work entirely from home (think remote work where you don’t have to physically be onsite to perform your duties), or you can have a business that is based from your home but you need to travel to other locations to get the jobs done (like landscaping or home repair).
Your options in this category can include things like education/tutoring, home care, cleaning services, management or consulting services, or other home services. You just need to make sure you are disciplined enough to separate your home life from your work duties.
Shipping And Courier Services
Shipping and delivery services were already pretty big. Then came the COVID-19 pandemic. With people unable to get out and about, these services saw an unprecedented boom.
Things like Uber Eats and DoorDash saw demand skyrocket, and Amazon orders went up immensely, too. Those trends are expected to continue for the next few years. With that in mind, Buying into something like a UPS Store franchise or becoming an Amazon Delivery Service Partner is a great way to go.
Boutique Fitness
The fitness industry came to a grinding halt as the pandemic began, but the industry has been able to withstand the downturn and come out in good shape. Many gyms were forced to come up with new ways to keep their customers working out, and that has brought about many innovations in the digital space.
Still, with people continuing to make their way back into in-person workouts, the boutique fitness industry is showing no signs of slowing down. Concepts like CityRow and The Barre Code have been able to adapt their practices, which means they have even more to offer customers as vaccines become more available and in-person gym classes start moving back towards allowing full capacity.
Foodservice
This might be more of a “planning for the future” move due to restrictions still in place because of the pandemic, but there’s no doubt that foodservice will rebound with a vengeance. Closures and other challenges due to the coronavirus led many restaurants to find contactless ways of serving customers, but consumers will be itching to get out and socialize when the current situation allows (which currently appears as though it will be sooner than later as vaccine distribution begins to widen).
One of the reasons why the foodservice sector is considered one of the top franchise industries is simple: there’s usually a lot of brand recognition. There are also other reasons why foodservice franchises are so popular—such as marketing support and easier financing. With the right location, a food service franchisee can make a significant amount of money.
It’s All About Fit
Finding your franchise fit is key to your success as a franchisee. Some entrepreneurs are looking for a franchisor willing to provide a tremendous amount of support, while other business owners might want a bit more freedom and autonomy. It’s also essential to make sure your views align with the company culture of the franchise you’re becoming a part of.
At Franchise123, we look forward to helping you figure out the top franchise opportunities for you. Check out some of these top franchises under $50,000!
