What are the Most Profitable Franchises? An Introduction

A franchise is a business that distributes (or 'franchises') the rights to use its brand, trademark and business model to external parties (or 'franchisees'). Franchises have been a popular business model, with the first franchise likely having been developed by Benjamin Franklin in the 1730s.

Going forward to the 2020s, lucrative franchises offer many benefits to franchisees. For example:

• Having a proven business model and ongoing support from a franchisor can make operations much easier and cheaper (rather than the 'trial and error' approach to operations other businesses may use). Franchisors may provide support in areas like marketing and advertising, accessing technology platforms, site selection and lease negotiation, and building supplier relationships. When considering a franchise for sale, it's crucial to evaluate the franchisor's track record and the support they provide, as a reputable franchisor significantly enhances the likelihood of a successful venture.
• The brand recognition and loyalty associated with franchises make it significantly easier to hit the ground running when establishing a new franchise location. A franchise will already have an established target audience base - compared to a new business. The franchisor will also likely have insights about navigating the competitive target market landscape. All the contenders for the most profitable franchise in the world will have superior brand recognition within their target market.
• Consequently, any positive press or effective franchise marketing will help boost your franchise unit's brand - without any effort on your part. A franchisor will also share the marketing and advertising strategies that have been effective for them in the past, meaning you can replicate their success without needing to use an experimental approach. 
• Compared to other business models (such as independent startups), the franchise model offers a lower risk of failure. With a proven model, plus ongoing support from the franchisor, the chances of running an unprofitable business are significantly lower. 
• The final and most compelling benefit of franchise opportunities is their profitability. Compared to independent startups, franchises offer quicker avenues to profitability. Closer relationships with vendors and suppliers mean wider profit margins, and advertising support from the overall franchise brand can bolster revenue.

The benefits of franchises can be condensed to their faster, more convenient methods of growing profits. However, franchises can significantly advantage franchisors: contributing to their bottom line and extending the brand.

However, not all franchises are built equal. The highest profit franchises may not be what you expect. An experienced franchise consulting company can guide prospective franchisees through the complexities of choosing and managing the right franchise opportunity. In this article, we will break down the top money making franchises, what factors affect the profitability of a franchise and how to access the most lucrative franchises.

Which Franchise is the Most Profitable?

In franchise terms, profitability means more than return on investment (ROI). Moreover, high profits do not necessarily guarantee a franchise's success: rather, profitability means scalability, longevity, and stability during unpredictable financial conditions.

When locating a franchise with a high return on investment, taking a long-term view will likely be rewarding. For example, health and wellness are huge cultural trends currently, but that does not necessarily guarantee that a spa franchise business will continue delivering profits in the next decade (we'll explore this later in the article). The industry that delivers the most profitable franchise to own will deliver longevity, not to mention plentiful opportunities for expansion.

Consequently, for true financial and lifestyle freedom, you will need to take a holistic overview of the profitability of a franchise. Some questions you might ask yourself include:

• Does this franchise have high-growth potential? In other words, once you've succeeded in establishing your franchise opportunity, could you potentially take another?
• How much profit have other franchisees made over the course of their ownership?
• Does your ideal territory contain a sufficiently high demand for the franchise's products and services?

These are only a few of the questions that you might ask yourself during the franchise research process. Many prospective franchise owners seek the services of a franchise consultant to navigate this extensive process. A franchise consultant will also reconcile the revenue potential of a franchise with other factors that you may wish to glean from your franchise opportunity.

Moreover, though in this article, we focus predominantly on the most profitable franchises to own, there are other factors to consider when acquiring and operating a franchise, such as:

• Whether it has the flexibility you need for your ideal lifestyle. For example, if you prefer working from home, you might consider an accountancy or marketing franchise.
• Whether it matches your previous experience - though this is not an essential factor, your previous employment experience may contribute to the decision-making process. It's also worth considering your interests, as a franchise can be an ideal palette to explore your creativity and ambitions (as well as being a profitable addition to your entrepreneurial portfolio).
• Work-life balance and the level of involvement required. If you're looking for a low time commitment, some franchises might be unsuitable. The first step to identifying the right level of involvement in your franchise opportunity is to visualize your ideal lifestyle and then consider how it aligns with your work-balance goals.
• The franchise's reputation and loyalty. Has there been any recent news that may deleteriously impact the franchise's reputation? Alternatively, is it a high-growth, well-branded franchise beloved by its customers?

Ultimately, the right franchise opportunity marries your goals and experiences with sustainably high profits. It may, therefore, make sense to research the most lucrative franchises and filter the options from there.

Unfortunately, there is not one singular franchise that is more profitable than its counterparts. The good news is that there are hundreds of profitable franchises. Moreover, some of the most recognizable, multi-million dollar businesses in the world are franchises - including McDonald's, Subway, UPS, TaxAssist Accountants, and Swarovski (demonstrating the success of the franchise model when successfully deployed).

The factors that affect the profitability of a franchise are both related to the franchise itself (such as the franchisor's support) and external factors (such as the economic conditions). In this section, we'll explore the key factors that comprise the worth of a franchise, and how to calculate the profitability of an individual franchise opportunity.

Economic Conditions

The relationship between the franchise and its economic conditions is more complex than it may initially appear. A stronger economic climate equals higher consumer spending, which means more revenue on the table. The amount of disposable income in your target audience's pockets will inevitably influence your franchise's return on investment (not to mention how quickly the franchise can become profitable).

From the franchisor's perspective, better economic conditions will encourage them to open more locations. More profitable franchises with better support systems will become available for prospective franchisees. Yet, franchises can become profitable in any economic climate with franchisor support plus the experience of a franchise business consultant.

Innovation

Another external factor that can impact upon a franchise's profitability is innovation. The 2020s have been defined by a drive towards technological innovation (accessible AI, increasingly sophisticated customer relationship management tools, financial platforms, etc.). Franchisors that invest in the right types of innovation will end up becoming more profitable in the long term. Yet, a franchisor's attitude to innovation is not always within the franchisee's control.

The intangibility of factors like economic conditions and general innovation may make it seem like it is impossible to calculate a franchise's true worth. However, reviewing several key aspects of a franchise can strongly indicate its potential for profitability. These factors include the relationship between administrative and operating costs, and profits - alongside franchisor support and the competition.

Administrative Costs

Franchises come with a fee. These fees take different forms but often involve an initial fee that covers the rights to use the franchise (including manuals, training, etc.) and then an ongoing share of the royalties, which may be paid monthly. Continuous sharing royalties will obviously minorly dilute your profits, although, in some limited instances, you may be able to negotiate these fees (a franchise consultant will be able to discern when this is appropriate and how to approach this opportunity).

Profit Margin and Cash Flow

Though we won't dive into financial specifics, it's important to have an understanding of the interplay between a franchise business's crucial financial variables.

For example, the majority of revenue will likely be assigned to the cost of goods and services (COGs). While this is an unavoidable expenditure, a profitable franchise business will minimize Sales, General, and Administrative (SG & A) costs. Additionally, the franchisor's ongoing royalty fees should preferably not exceed the S G & A fees.

Reaching your break-even point should be one of your first goals - the break-even point being where your profits equal your initial investment fee and expenses. If you're unsure, a franchise business consultant will help you complete a break-even analysis.

Before making any type of commitment, it's important to review a company's financial statements (balance sheet, income statement and statement of cash flow) to identify any potential for financial losses. Financial statements will contain all the information about a franchise business. Again, if you're unclear about how to interpret the relationships between the line items on financial statements, consider using the services of a franchise business consultant.

Market Demand

We've already touched upon the importance of market demand. In a franchise context, market demand can be a highly effective indicator of the future success of a franchise. Researching and estimating a customer's lifetime worth and how many potential customers exist in your territory will indicate the kinds of profits that your franchise business stands to make. From there, you can research your current competitors in the market and how your franchise business will be able to outmaneuver them to get straight to the profits.

Competition

Researching your competition will help you determine how your franchise business can enter — and then gain market share — in your target location and demographic. For example, you could identify areas where your target market is underserved and tailor your franchise business's offerings appropriately. Understanding your local competition's unique selling points (USPs) will also help you develop a pricing strategy, effective marketing and advertising tactics, and any operational pitfalls to avoid.

Franchisor Support

As aforementioned, franchisors will provide many types of initial and ongoing support to their franchisees. The quality of the support will inevitably influence profit levels. When franchisors teach franchisees how to build long-term relationships with suppliers, optimize inventory management, and cut waste. Franchisors will also provide guidance when navigating the potentially choppy waters of budgeting, financial reporting, and troubleshooting operational challenges.

If possible, speak with other franchisee units ahead of committing to any franchise to hear about their experiences, including any challenges they've encountered and their experience of working alongside the franchisor.

Overall, calculating a franchise's potential and profitability will require a careful understanding of its financials (such as how much it will cost to operate, how much of its revenue is tied up in inventory, and the cost of goods sold), combined with qualitative factors like other franchisee units' experiences. Per franchise, a review will likely take hours - or you can save time and increase confidence by leveraging the expertise of a franchise business consultant.

Franchise consultants like Guerrilla Franchising will have studied all the available franchise opportunities and will be able to expertly identify and collate information about the highest-potential franchise business opportunities. Subsequently, you might be curious about the most profitable franchise opportunities - in the next section, we'll unpack the revenue potential of each franchise by industry.

What is the Number 1 Most Profitable Franchise?

The most profitable franchise opportunities change depending on internal factors - plus the attitude and experience of the franchisee.

Though it may not be possible to know exactly what franchise is the most profitable, a few industries are offering highly lucrative franchise opportunities. Let's explore a few of them.

• Food

Food franchises can take multiple forms, such as takeout, restaurant, and fast food businesses. Several of the world's most profitable fast food companies are franchises, including McDonald's and Wendy's. The benefits of food franchises include having a streamlined operational model and high bulk purchasing power, meaning limited operational costs are eating at the bottom line. Franchisees should be able to leverage the franchisor's network to negotiate bulk purchase agreements with suppliers for ingredients, packaging, and other supplies. Unlike other franchise industries, there's no delay in attracting customers - once you open your doors and start serving customers, you can begin to reap profits.

• Find out more about food franchises here.

• Gym and Fitness Franchises

Gym and fitness franchises have seen a surge in popularity in the last few years, fueled by contemporary fitness trends. It is estimated that the global fitness industry is worth nearly 100 billion dollars.

Gyms and fitness franchises have high-profit potential for several reasons. Firstly, recurring memberships and high customer loyalty mean a predictable revenue stream. Gyms can upsell supplementary services with a large profit margin, such as personal training, fitness merchandise, and nutrition consultations. Finally, franchise gyms will operate under a standardized business model that keeps costs low, meaning that there's none of the unpredictability or nasty surprises that can derail the profits of other businesses.

• Salon Franchises

Salons are one of the most popular franchise types - for good reason. Like gym franchises, salons enjoy recurring business and enviable customer loyalty rates. A predictable income stream makes salons an ideal franchise proposition for anyone looking for a low-risk addition to their investment portfolio. Local salons also offer a large customer base once they have established a positive reputation (which is easy to achieve if the franchisor also boasts a favorable reputation). A salon suites franchise provides a flexible and innovative business model for beauty professionals to run their businesses, which attracts a consistent and loyal customer base. Marketing efforts can also be highly effective on a local or regional level, boosting a salon franchise business's recurring revenue stream. 

• Construction Franchises

Again, recurring service contracts, like property maintenance or facility repairs, are a predictable source of revenue. Construction franchise businesses can also access high-value contracts, such as commercial projects, that, upon successful completion, mean large amounts of profit— fast. Construction franchisors will teach their franchisee businesses to operate with well-defined procedures for project management, quality control, and safety. This standardization will streamline operations, minimize rework, and reduce waste, developing profitability.

It is notable that this list of franchise industries is not exhaustive. There are plenty of other industries with high-profit potential, such as tutoring or education, accountancy, cleaning, and so on.

Again, profitable franchise businesses are not confined to one particular industry. Though sifting through and researching the financials of franchise business options can seem overwhelming, an experienced franchise business consultant can assist you in cutting through the noise and getting straight to the profit.

Find out More About Profitable Franchise Opportunities - Get in Touch.

Guerrilla Franchising has helped individuals across America access financial freedom by owning and operating top money making franchises. We work closely with our clients to match them with the best franchises, and then ensure they have all the tools they need to make their franchise opportunity a success.

If you're curious about how Guerrilla Franchising can help you achieve your entrepreneurial goals, book a free, no-obligation consultation with Dan Lorenz. A former Big 4 investment banker, Dan has owned and sold franchises for significant profit. Claim your free consultation worth $1,367 here.

A franchise model means an entrepreneur (the franchisee) can operate a business under another company's established brand and operating system (the franchisor). The franchisor provides a tried-and-tested business model that, compared to a standard business model, can mean better profits — faster.

Yet, from the franchisee's perspective, there are many benefits to the franchise model that encompass and go beyond profitability. When evaluating a franchise for sale, it's crucial to assess the brand's market position and the level of support offered by the franchisor, as these factors significantly influence the success of franchise models. In this article, we will explore the benefits of the franchise model and how they can be accessed.

Exploring the Unique Benefits of a Franchise Model

The market for franchise businesses for sale is vast, offering opportunities across various industries and catering to different investment levels.

The franchise model means rapid penetration into saturated markets. For example, although there are currently thousands of fast food restaurants and outlets, the right fast food franchise business model can allow you to gain a market share in your region quickly.

Consequently, a notable benefit of establishing a franchise business model is the level of support from the franchisor. Not only will the franchisee be able to access a proven business model, but they will also be able to use advertising materials and the same suppliers to ensure the lowest possible operating costs.

Franchisors will also be available to advise throughout a franchise unit's formation, launch, maintenance, and refining. The franchisee will be able to avoid some of the common pitfalls of starting a new business and take advantage of the preexisting positive brand reputation. It benefits the franchisor by assisting their franchisees in consistently turning over sizable profits, so over time, franchisors have increased their level of support throughout the franchising process.

For first-time franchisees, the assistance of a franchisor will be invaluable in navigating the more technical aspects of starting a business. For example, some franchisors can help with financial reporting. All businesses of a certain size in the US must report their income, but without significant experience, it can be a lengthy and arduous process. The franchisor's marketing and branding support can also elevate your franchise unit by instantly associating it with a recognized brand, fostering trust and credibility with your target demographic.

Though brand loyalty may seem like a relatively intangible benefit of franchises, it can significantly affect the success of the franchise model. A positive reputation plus a strong local or regional presence can ensure success from day one.

Aside from helping you achieve your financial goals; franchise models can also help you meet your lifestyle aspirations. You can set your own schedule and maintain full control over your career. For example, if you wish to work remotely, you can look into business service franchises, such as accountancy, marketing, copywriting, and education. If you're looking for flexibility, you could consider franchises like pet care, handyman services, and fitness franchises.

Because of these benefits, franchise models generally have extremely low business failure rates. Independent small businesses face a 90% failure rate; yet is a matter of only a few percent for franchise units. While not without risk, following a proven system and leveraging brand recognition can significantly improve your chances of success.

However, the research involved in identifying the most profitable franchise models may be intimidating to some. A reputable franchise consulting company can help you navigate the complexities of selecting the right franchise model that aligns with your financial and lifestyle goals. There are hundreds of thousands of franchise opportunities in North America. Guerrilla Franchising has filtered out the top 250+ franchise models, ready for review.

When exploring franchise models, both franchise opportunities in Dallas with its diverse economy and franchise opportunities in Pittsburgh with its revitalizing market are excellent options to consider, along with many other cities that offer promising franchise prospects.

Learn More About the Advantages of a Franchise Model

If you would like to learn how to obtain financial and lifestyle freedom from successful franchise models, we welcome you to get in touch. Guerrilla Franchising matches Americans with lucrative franchising opportunities and ensures they have the tools they need to succeed (hear from our satisfied clients here). Book your free consultation (worth $1,367) here.

What are Niche Franchises?

Niche franchises refer to franchises that sell to a niche market and have an unconventional business model. Franchises cover many markets across many industries; a niche is a small yet defined franchise with which to make your mark (and make some profits).

For example:

• Instead of a pet care franchise, a niche franchise business opportunity might be a mobile pet grooming service.
• Instead of a general fitness franchise, a niche franchise business opportunity might be a boutique fitness studio serving the 45-64 year old demographic.
• Your local region might be flooded with car washes but not have a mobile, eco-friendly car detailing service.

Finding a defined niche can be an effective way to navigate a saturated or competitive market. Your region might have a thousand sit-down restaurants, many of which are franchises, but it may not have a high-end sushi restaurant focusing on sustainable seafood and omakase experiences. Additionally, you may have experience and expertise in a particular niche you wish to take advantage of. In other words, niche business franchise opportunities combine proven business models with a laser-focused approach. When exploring a franchise for sale, it's important to consider how its niche market positioning can offer unique advantages and profitability.

Some recent trends in niche business markets include mental/physical health and wellness businesses (like specialized fitness programs, healthy meal preparation delivery services, or alternative wellness therapies). Fitness franchise opportunities continue to grow in popularity, particularly with niche markets such as specialized boutique studios. Another example is experiential or experience-based niche franchises, like escape rooms, virtual reality experiences, or specialized hobby workshops, which have begun gaining traction in the 2020s.

Some investors are understandably concerned about investing in niche or small business franchises, as they believe the relative smallness of the market will cap the profit potential. However, by conducting due diligence, you can eliminate the lower-potential franchise opportunities from worthwhile ones that can deliver a high return on investment (ROI). Engaging a franchise consultant can offer critical insights when evaluating niche franchises, helping to ensure they align with your objectives. Conducting due diligence on niche or small business opportunities is a long process but ultimately necessary. In the next section of the article, we'll summarize some of the signs that identify successful small business franchises.

What Makes a Successful Small Business Franchise?

Though some factors that affect small business franchise success are out of your control (such as the economic conditions in which the small business operates), there are several ways to assess the profitability of a small business franchise. In this section, we will detail how the unconventional business models of niche franchises can be validated before investment and commitment.

Check the small market exists

Small, defined markets may be submerged under the umbrella of larger market demographics - many people enjoy pizza, but only some may enjoy ethical omakase experiences, for example. Nonetheless, validating the market's existence and appetite for your franchise's products is important. This may involve some sleuthing - online research and local market research as starting points. If you're not finding any success, consider whether the franchise's value proposition is strong enough (i.e. whether the business opportunity is sufficiently unique). This type of research will help you position your franchise's products and services for short and long-term profitability.

Check the reputation of the franchisor

Although small business franchisors may not have all the franchising information available like larger and more recognizable franchisors like McDonald's and Wendy's, it is vital to check the franchisor's reputation. You can do this by checking to see whether they have garnered any negative press or controversies and by harnessing resources like the International Franchise Association (IFA) website or the Better Business Bureau (BBB) to see if any complaints have been filed against the franchisor.

It can also help to contact any other franchisee units to review the quality of franchisor support they received. Ideally, a small business franchisor will provide holistic and ongoing support, encompassing initial training, marketing, advertising, sales, operational guidance, and assistance in financial reporting. 

Can the niche or small business opportunity scale and develop?

Though you may be able to turn a profit operating a small business in a niche market, you may look ahead to future growth opportunities: acquiring market share, improving brand recognition, and even expanding to new territories. It's important in this context that 'niche' doesn't mean 'constrictive,' and your niche will be able to be scaled or adapted.

When planning to expand your franchise to new regions, consider exploring franchise opportunities in Atlanta, as it can reveal diverse markets ready for niche business expansion. Adapting your franchise to other regions and even countries requires constant evolutionary changes. Technological innovation, such as AI, may assist with these changes. Establishing effective supplier relationships and a refined business model will also help to outmaneuver clumsier competitors and continually attract recognition and profits.

Financial investment vs. current performance

Once you've affirmed the niche franchise's positioning in the market, you may want to examine its current financial health, which can be ascertained from its financial statements (you should closely review any red flags contained in its financials, like high debt levels). You can compare the franchise's current performance to how it aligns with your entrepreneurial goals. For example, if the niche performance shows a strong financial performance with no caveats, you might be willing to invest in higher upfront franchising fees. If you're unsure about a niche franchise business's financial health, most franchise business consultants will be able to assist.

Of course, there is one other factor to consider, which is:

Personal Interest

For niche franchises, it may be helpful to have an interest in the franchise.

Learn More About Niche Franchises - Claim Your Free Consultation Today

Guerrilla Franchising works with 250 pre-screened franchising opportunities in North America, many of which are small and niche businesses. We work with potential investors to match them to the right franchising business and then work closely with them to ensure they make their business a success.

If you'd like to take the next step in finding the right niche franchise business for your entrepreneurial needs, book a free consultation (worth $1,367) with our founder, Dan Lorenz.

Dan is a former investment consultant at a Big 4 accountant firm and has successfully owned and sold franchise opportunities for a significant profit. He has helped Americans achieve lifestyle and financial independence from corporate America - so, if you're ready to break free from a corporate career, book your free 15-minute consultation now.

What is a Franchise Opportunity?

A franchise opportunity is a chance to own and operate your own business under the umbrella of an established brand. Franchises can be a highly profitable addition to your investment portfolio - not to mention an efficient avenue to financial and lifestyle freedom. Even with limited experience, franchises can yield a high return on investment.

Part of the success of franchise opportunities is from the foundational, tried, and true franchise business model and operational standardization. Therefore, franchise businesses' success rate is far higher than independent startups. 90% of small businesses fail, yet the rate of franchise failure is estimated to be around 2%.

Understanding the signs of franchise opportunities can help you identify the right business ownership path for you. In other words, learning what identifies a promising franchise opportunity can assist you in finding the business that helps you fulfill your lifestyle goals.

What Makes a Good Franchise?

There are multiple factors that identify a good franchise opportunity. When evaluating a franchise for sale, it is crucial to consider the brand's market position and financial health. In the next section of the article, we will explore what comprises the best franchise opportunities.

Franchisor Support

Crucial to a franchise business opportunity's success is the support given by the franchisor. The franchisor will provide manuals, training, and guidance for operational success. They may also offer support for the difficult financial aspects of running a business, such as financial reporting. Mass franchise marketing will also assist in quickly establishing a positive brand image for your franchise business opportunity. For those who have a specific budget for a business, such as a franchise under $500k, there are great options you can find that offer strong growth potential with the help of robust support systems from a franchisor.

Before embarking on a franchise journey, it is recommended that you contact other franchise units about their experiences with the franchisor. Additionally, it is essential to conduct due diligence about the franchise business — whether it has any recent controversies that could compromise the success of your franchise business launch or a positive brand reputation.

Competition & the Target Market

Take the time to assess the competitive landscape in your desired region. This crucial step will not only indicate the franchises with the highest potential for success but also reveal valuable insights to inform your decision-making. For example, if you're comparing two fitness franchise opportunities, consider which may fulfill a niche in the region's demographics. Understanding the target market will also illuminate a franchise's profit potential.

Creating a comprehensive franchise business plan is essential for outlining operational strategies and achieving long-term success.

Profit Potential & the Financials

Though we won't delve into excessive technical depth, reviewing a franchise business opportunity's financial position will assist in comparing its worth to others.

By consulting metrics like revenue streams and profit margins, you can quickly gain an understanding of a franchise's profit potential and whether the franchise is complementary to your financial goals — for example, your portfolio's risk tolerance.

Another key consideration is the sustainability of the franchise business opportunity's financial health. Even if it currently boasts a high revenue stream, it is important to check debt levels, cash flow, and the asset-to-liability ratio. If any red flags emerge—such as large debts or a declining revenue stream—it is not a worthwhile franchise opportunity for investment.

Studying a franchise business opportunity’s balance sheet, income statements, and statement of cash flows is time-consuming and, if not fully experienced in finance, liable to errors. You may wish to consult a franchise business consultant to help you review prospective franchise opportunities.

Your Experience and Lifestyle Goals

Your previous employment experience may influence but will not define the right franchise business opportunity. For example, even if you have experience in hospitality, a high-quality franchise opportunity for you may not necessarily be a restaurant business. 

The best franchising opportunities are also contingent on your lifestyle goals. For example, if you would like to work flexible hours, you might select business service franchises that can be operated remotely (such as online education, copywriting, marketing, etc.) or one with adjustable hours (such as cleaning, fitness training, or pet care services). It is essential to consider your desired work-life balance and how much of a time commitment your ideal franchise would be.

Identify Good Franchise Opportunities with a Franchise Business Consultant

Overall, you don't need to find the right franchise opportunities by yourself. A franchise consultant with an impressive track record can help you match the right opportunity and then fast-track your business's growth. 

Guerrilla Franchising has assisted many Americans in obtaining financial and lifestyle freedom - read our testimonials here. We help our clients navigate the franchising landscape to find the right franchise opportunity for you, and then make the franchise business a success. Our experts have compiled a list of the 4,000 most lucrative franchise business opportunities across the US and will work closely with your requirements to ensure that you accomplish your entrepreneurial goals.

Our founder, Dan Lorenz, has bought,sold, and operated franchises for a significant profit, having previously been an investment consultant. If you would like to claim your free 15-minute consultation (valued at $1,367) get in touch here.

The best franchises of 2024 combine proven business models with ongoing franchisor support. Franchise opportunities come in all shapes and sizes, and contemporary franchise trends suggest substantial returns on investment.

It may be tempting to wonder, 'What is the hottest new franchise?' - but there are a few contenders. When looking for a franchise for sale, it's crucial to research the franchise's history, financial health, and support system offered by the franchisor.

Let's unpack the emerging franchises - ranging from AI-powered and tech-driven franchises all the way to harnessing non-traditional franchise locations.

New and Upcoming Franchises: Exploring Trends

The world of franchises is always evolving, but here we'll condense five notable trends from new franchises in 2024. If you're interested in discussing any of these trending franchise opportunities, book a free call here.

1. Online Franchise Opportunities

Since ChatGPT garnered international attention in November 2022, major financial services sectors have been figuring out the best way to integrate AI's benefits into their tech stacks. The result? Tech-driven franchise opportunities with longevity and an innovative approach. Franchisors are now exploring how to streamline franchise operations using the latest technologies, combined with the expertise and enthusiasm of their franchisees.

Another consequence of the technological rise of the 2020s is a surge in online franchise opportunities. With tools like video conferencing and customer relationship platforms, non-traditional franchise locations and flexibility are on the rise (more on this below). Online franchise opportunities can take many forms - e-commerce, financial brokerage, digital marketing, and so forth.

You don't have to be a technology expert to explore online or technology franchise opportunities. Even in non-technological franchises, new and accessible technologies can make operating franchises quicker and more economical.

2. Non-Traditional Franchise Locations

The days of having to use in-store franchise locations are over. Highly successful franchises can be operated anywhere, including remote franchises (such as consulting, HR, accounting, professional development, etc.) Mobile franchising opportunities, like cleaning and pet care, also offer flexibility.

Additionally, franchisors have begun exploring the unique benefits of different spaces - for example, co-working spaces, airports, campuses, etc. Non-traditional franchise locations can offer benefits like reduced overhead costs, higher customer traffic, and targeted access to demographics.

So, if you think running a franchise means being stuck in an office or restaurant all day - think again.

3. International Expansion 

Franchisees have increasingly been looking beyond domestic markets for target markets. In domestic markets, the market for franchises in competitive industries (such as food or fitness) may be saturated. Positioning your franchise towards international markets may allow franchisees to tap into new customer bases and growth opportunities. Operational costs (like labor and rent) can be lower in some non-domestic markets, potentially boosting bottom lines for franchisees. Plus, international recognition makes it easier to attract local business.

4. Health and Wellness Franchises

An increased consumer interest in health and wellness has created a wealth of business opportunities - such as personalized fitness training, boutique fitness studios, and healthy meal delivery services, to name a few. Even if you don't have direct expertise working within the fitness industry, a health and wellness franchise can offer significant profits.

Another key benefit of health and wellness franchises is the opportunity to upsell goods and services with a high-profit margin, such as nutritional consultations, personal training, and merchandising, all of which can boost the bottom line.

• Interested in exploring gym franchises? Find out more here.

5. More Comprehensive Franchisee Support

Franchisors have realized the benefits of providing complete support to their franchisees. 

This support can take many forms, including training programs, dedicated mentorship, marketing and advertising strategies, supplier discounts, accounting support, and so on. Franchisors will ideally advise on navigating the business's financials, such as the specifics of financial reporting and benchmarking data. Another key facet of franchisee support includes leveraging buyer relationships to secure competitive contracts for goods and services.

Higher-quality franchisee support is a quid pro quo - franchisors can grow their profits and monitor their brand reputation, while franchisees can access faster growth and avoid common pitfalls and mistakes. Franchisors supplying more complete franchisee support is a trend that's likely to stay beyond 2024.

The Top Franchises to Own in 2024: A Summary

What is the future of franchises?

Key factors suggest that the future of business franchising may be influenced by technological and wellness trends, plus a non-traditional approach - all bolstered by better-quality support from franchises. Another trend is international expansion, but it's also important to note that domestically there is a diverse range of franchise opportunities in Texas, for example, particularly in the thriving food and beverage and health and wellness sectors. 

In 2024, it's never been easier for interested investors to unlock the lifestyle and financial benefits of franchises. However, having a franchise consultant by your side can help you identify and reap the benefits of the best franchises 2024 has to offer. In Guerrilla Franchising, innovative and creative strategies are used to create a significant impact in the market.

Guerrilla Franchising, founded by Big 4 investment consultant Dan Lorenz, has enabled clients across North America to discover how franchises can fulfill their entrepreneurial ambitions. Discover our testimonials here.

Do you have any questions or want to explore how to take advantage of upcoming franchise trends? Claim your free 15-minute consultation (worth $1,367) here.