In the world of business, there are endless opportunities to pave your way. But, contrary to popular belief, creating your own company isn’t the only way to make money. Diversido development agency is working with startups for a long time now and they agree that it is a time and energy-consuming process. You should oversee all risks, develop digital platforms and brand image from scratch, carefully market your product, and the like. Franchising is the perfect alternative you’re looking for.
Franchising is the ideal way to own a business without starting from scratch. You don’t have to worry about marketing, hiring employees, etc. Instead, you can skip to the good part about owning a business.
The best part is that there are hardly any risks. Franchising established businesses guarantee a profit, making it safe for entrepreneurs to own businesses. Here are 10 of the most profitable franchises to own in 2022.
Choosing a Profitable Franchise
Choosing a profitable franchise isn’t a simple task. While some franchises guarantee a nearly non-existent failure rate, some have proven risks. Here are 5 factors that make the most profitable franchise.
Get the latest news, resources and tips to help you and your small business succeed.
Cost
Consider the franchise fee, total investment, and royalty fees. Is it costing you more than it should be profiting you? A low franchise fee doesn’t necessarily mean lower profit. If you need some capital to get started, see if title loans or some other type of funding may be able to help you get started.
Growth
Do some research on the business’ open and operating units. A higher number is usually a good sign. Moreover, is the growth rate positive? Have there been many closures over the years?
Support
Next, you must take into consideration the training times and franchisor infrastructure. Plus, marketing support, operational support, write my essay, and financial availability are more important factors.
Brand Strength
Don’t make the mistake of investing in a business lacking in strength. Its social media presence, system size, and years in business should tell you about its strength. The longer they’ve been franchising, the better. You can use a social media scheduler to improve your brand’s social media performance.
Financial Stability
Franchising doesn’t have to be a shot in the dark. Instead, it would be best if you only opted for financially stable brands. Look into the franchisor’s audited financial statements before making your decision.
10 Most Profitable Franchises in 2022
We’ve taken into consideration the 5 pillars of finding a suitable franchise. Read on to find the top 10 most profitable franchises to invest your money in.
Ace Hardware
Ace Hardware has an initial franchising cost of $286k to $2.1m. Number 6 on the Franchise 500 list, it’s one of the most profitable franchises in 2021. You can check Nachttischlampe Kinder and malen nach zahlen kinder. In addition, 75% of all US homes are just 15 minutes away from Ace Hardware.
Plus, it has opened 5,312 units since it started franchising in 1976. Last year, the retailer managed to make $16b in sales. After the company’s offer to deliver customers’ orders delivered to the nearest store, their online sales rose by 81%.
Its abundance in sales and open units makes it a safe business for you to invest in.
McDonald’s
It might seem impossible for McDonald’s to grow further with their 38k already-open units. However, the international fast-food chain is selling 10 orders per second. Surely, that measurement should be enough to display its continual success.
McDonald’s started franchising in 1955. By paying an initial franchise cost of $1.3m to $2.2m, you can own your very first McDonald’s franchise.
Recently, the business has made a $10b system-wide store redesign. This change will be a great help for new entrepreneurs choosing to franchise. In addition, the average McDonald’s franchise profit is $150k.
Supercuts
If you’re looking for low-cost franchises with high profits, SuperCuts is the best option. The initial franchising fee is around $144k. Plus, their business model is simple and easy to operate.
Since 1979, they have opened 2,070 units in just the United States. However, Supercuts is expanding its franchise total by 10% each year in terms of growth rate. Plus, the investment fee is almost doubled, with annual revenue of approximately $262k.
Dunkin’
Number 1 on last year’s Franchise 500 list, Dunkin’ is easily one of the most profitable franchises in the world. The international chain started franchising in 1955. As of 2020, it has nearly 13k open units.
You can open your Dunkin’ franchise with an initial investment fee of $395k to $1.6m. After that, a Dunkin’ Donuts franchise profit is about $100k per location.
Although the brand dropped “Donuts” from its brand name in 2018, it still managed to sell more donuts. Clearly, that’s an indicator of a loyal and committed customer base that you can count on after franchising.
JAN-PRO
JAN-PRO is one of the most profitable franchises under $10k. In fact, the initial franchise is only $1k to $20k! No doubt, the company is a world leader in janitorial services. Consequently, the failure rate of investing in JAN-PRO is close to none.
In addition, JAN-PRO will offer you three ownership options if you’re interested in franchising. Those options depend on your experience level and investment limit. Plus, they offer flexible schedules for franchisees who’d like to work from home.
Since 2005, they’ve opened 8,500 units across the US.
The UPS Store
The UPS Store is one of the most profitable franchises as it was ranked #5 on the Franchise 500 list in 2020. In fact, the business started franchising in 1980 and now has 5,166 units.
Admittedly, its initial franchise cost is quite high at $138k to $470k. However, it’s one of the most promising businesses to franchise. You’re guaranteed to get your money’s worth in profits over the years.
Pearle Vision
Pearle Vision’s unique business model has remained successful 6 decades from its debut. Since it’s now owned by Luxottica, franchisees have more opportunities to generate revenue.
The initial franchise fee for Pearle Vision is $30k. Moreover, since its franchising began in 1981, they’ve opened 533 units.
Dream Vacations
Owning a travel agency is one of the most foolproof ways to generate revenue. Dream Vacations started franchising in 1992 and now has 1500+ open units. It’s a great opportunity for franchisees who want to work from home.
Luckily, it’s one of the most profitable franchises under $50k. In fact, the initial franchising fee is only $495 to $9800.
Anytime Fitness
Anytime Fitness is one of the most profitable sports franchises. That is because their business model fits their name; it’s open 24/7/365. Therefore, this continuous availability brings in more revenue than other fitness franchises.
In fact, a new member signs up for Anytime Fitness every minute. Their committed customer base makes them a safe business to invest in.
However, the business doesn’t collect franchise fees based on monthly sales. Instead, you’ll have to pay a flat $699 fee per month. Their initial franchise fee is $3k to $42k. Moreover, Anytime Fitness started franchising in 2002 and now has 4,520 open units.
The Maids
With an initial franchise fee of $12.5k, The Maids is one of the most profitable franchises under 50k. Plus, each franchise makes about $1.1m in revenue per year. So at most, your initial investment will round up to $200k.
Within one year of owning a Maids franchise, you can count on at least $200k to return to you. Moreover, that profit only increases the longer you’re a franchisee. Lastly, something to know is that their most successful franchise generated $6.5m in revenue last year.
The company is celebrating 40 years as a leader in franchising. As of now, they have 1,300+ franchised territories. Plus, they serve 40k homes and employ 3.4k people each week. So, you can count on a very low failure rate when franchising The Maids.
FAQs
You probably have some doubts about placing your investments in franchising. Read on to find all your franchising-related questions answered.
What is the most profitable franchise to own?
According to the Franchise 500 list of 2021, Taco Bell is the most profitable franchise to own. The food chain has been franchising for nearly 6 decades and is still seeking franchises worldwide.
As of 2021, they have 7,567 open units. Plus, it isn’t the most expensive franchise to own either. It has an initial franchising fee of $25k to $45k. Lastly, it’s one of the most fastest-growing franchises in the world.
Can you get rich by owning a franchise?
Owning a franchise will only be beneficial if you pick the right business. Plus, you must consider the 5 important factors before investing your money. That includes costs, growth, support, brand strength, and financial stability.
Going in with entrepreneurial experience will surely help. But, although you won’t have to start from scratch, you’ll still have to work consistently to generate revenue.
Conclusion
Franchising is a profitable way to own a business without starting anew. Simply put, you can skip the complicated part and get to gain profits.
That means you won’t have to create the product, market it, and hire employees. All that’s already been done for you!
Finding the most profitable franchise in 2021 requires you to consider a few factors. That includes cost and fees, brand strength, financial stability, size and growth, and support.
Now that you know the 10 most profitable franchises, you can make your investment. Don’t forget to take into consideration your desired profit, your investment limit, and your location.
