What are the “Best” Franchises?April 20, 2022
Last video where we discussed “best franchises” I got some flak from viewers because I didn’t give any solid examples of what the supposedly “Best Franchises” actually are. I’ll try and do better this time.
But in my defense what is the “Best franchise?” That’s completely subjective. And that is why in the last video I didn’t mention any names because to do so would be impossible. It’s the same as me asking you what is the best car. It depends entirely on your situation and your needs. You wouldn’t want a Lamborghini to go 4 wheeling or to drive kids to sports and it’s the same for franchising – every person, every location, every budget, every situation is different. But let’s break it down and give some individual examples of what a best franchise might mean for you.
We have found there are varying top priorities people seek in a franchise. and depending on what your priorities are your best franchise choices will be entirely different. Those 6 priorities are as follows 1. Passive or absentee ownership 2. High earnings 3.Exit Strategy and Resale 4.Lifestyle Businesses 5.Low Cost or driven by budget 6. Lowest Risk
These 6 categories have several or even hundreds of franchise choices in each category and from an overall perspective most people will find their “best franchise” in one of these 6 categories. Obviously we wont have time to cover them all as there are hundreds – but we will look at industries within each group that are best suited for your goals.
Now depending on which of those are important to you your best franchise choices will be entirely different. Not to mention many people have no idea how much franchises actually make and just go with the big names thinking they pay the big bucks. Not true in fact often the opposite.
Lets break down these 6 categories one by one.
1. Passive investment. Some people don’t want to actively work in the franchise because they have an existing job or run another business, or it may be a celebrity or investor group. Obviously they don’t want to work behind the counter so they need a business that will allow for passive or absentee ownership. Now keep in mind these will not be your highest moneymakers because you also need to hire additional senior management in your place to run your store. many people are under the mistaken impression that all franchises can be run passively and that is just not true. In fact many of them have clauses requiring you to be actively involved in the operation of the store. So from a purely passive ownership perspective some of the best franchise choices are Hair salons, certain types of restaurants, automotive repair and body shop centers, certain learning and tutoring centers, certain health clubs or massage outlets and assorted business services franchises. These businesses also have sufficient margins to allow you to hire a manager and still earn a profit. You typically wont make a lot of money from one location with these types of franchises so the ultimate goal should be multi unit ownership which you can build over time. That’s a great move as in a decade you could own 5-10 locations and sell them off for a nice profit.
CONTINUED AT: http://www.franchise.city/bestfranchises/