We recently did a video looking at what the "best franchises" might be and had some negative
feedback from some people who just didn't get that there is no such thing as the "best
franchise".
"Best" is a subjective term.
It's like if you asked me what the best car is and I said Lamborghini some people would
say "I have 4 kids that's the worst car", or "wow that gas mileage is terrible" It's
the same in franchising there is no one franchise that will suit everyone, in every budget,
in every background and every location.
But I thought about it and there is one definitive topic I can cover and that is how much money
a franchise makes.
So let's start off with the single highest grossing franchise I have ever encountered
in my career.
It was a sign franchise, so a franchise that designs, creates and installs signs for businesses.
This single unit franchise was generating 30 million dollars a year from a single location.
That number is far and away the highest I had ever heard of.
But is the sign industry so great?
We'll yes, sign franchises and specifically B2B or business to business focused franchises
are quite good and they are a sector that most people aren't even aware of.
But why are these franchises potentially so profitable?
Well it comes down to the business model and the ability of the owner to directly influence
his or her business.
For sake of comparison look at a McDonalds franchise and their operational model.
You set up a location, send out some flyers and coupons and hope for the best.
There is really not a whole lot an owner can do to increase the profits of their franchise.
Sure they can network the community, meet people and most good local franchise owners
do, but that doesnt really impact the revenue in any big way.
But when you own a franchise that provides services to businesses, you have a huge impact
on the revenues of your store.
And here is where once again we see that not all franchises are great for everyone.
But someone with a sales, marketing or B2B networking background can really do well by
coordinating a sales crew, or in a smaller franchise going out themselves and generating
business locally.
And that function is not something most people like to do.
But the reality is the most profitable franchises are very often tied to businesses where the
owner or their employees work quite diligently on new business generation.
Now for some potential owners they just want to earn as much money as possible and sell
the franchise in a few years for a million dollars.
Others wan't a more laid back situation and just stand behind the counter - again - no
best franchise.
But in cases of where money is the priority there are a lot of these business to business
franchises available that allow for direct influence over the amount of money that comes
in and the harder and smarter one works the higher the revenues.
So let's look at some real world examples.
Sign shops are great and will always be in huge demand.
Printing, is another business and some of these shops get into the specialty field like
car wraps which is a great niche market.
We work with several franchises in printing and signs investments start at about $200K
give us a call to see which are available in your area or visit our franchise directory
to browse them all.
Staffing and employment franchises are also potential big money makers.
And these are also often lower overhead businesses where you are not buying or selling any products
so margins are good.
Express Employment, the 4th largest employment franchise in the world has average owners
that are open 1 year doing over a million, and their average mature office does 6.2 million
in sales.
Again we work with several employment franchises call to check territory availability your
investment will range from about $80,000 to $200,000
If you have a business background business consulting or coaching can be very profitable
and great from an ROI perspective.
many of these franchises have low start up costs under $50,000, can be operated from
home, have low overhead and very high margins, 6 figures are expected and some top producers
earn over a million.
Within that group as well are speciality consulting franchises, such a cost reduction consulting
where you help companies save money on telecom or billing costs, or energy consulting where
you help companies save money on their energy costs.
These are all cash businesses no inventory and low overhead so can be very profitable.
If you have access to a lot of cash there are franchises that actually help you become
a short term lender to businesses and will match your loans to six times.
With these franchises you earn revenue just like a bank with short term business loans.
This is a mostly passive business and can be quite lucrative once your business has
a few regular clients.
So there you have it, some highly profitable franchise ideas and industries that allow
the owner to directly influence their amount of earnings by proactively targeting business
to business clients.
If money is important and you have the skills, business to business franchises can be the
most profitable choice.
Don't forget to like and subscribe and come visit our new franchise directory I'll put
the link up here.
Thanks for watching.