Opening a franchise can be a great way to make money. A well-known franchisor, such as McDonald’s, has the name recognition to support a franchisee, and even a poorly-known franchisor with a successful business model has already overcome the most difficult obstacles and common pitfalls of opening a business. Purchasing a franchise is therefore a very attractive option for the budding entrepreneur. They can have their own business with a proven product and method and the only variables are location and management. The risks are mitigated and the rewards are predictable – in simple terms, a proven franchise is as safe an investment as opening a business can be.
There are franchises in virtually every industry. The most common example is fast food, and that’s because of how incredibly successful those establishments are. It seems that everywhere you go you’ll see a Subway, Taco Bell, or McDonald’s. But if you think that cheap meat peddlers are the typical franchise, you’re dead wrong – there is no typical franchise. They come in every description.
For the entrepreneur looking to start a new business, there are many worse choices than opening a franchise, but once they’ve decided that a franchise is the way to go, the next big decision is which franchise is the right choice. The best business to operate is the one that you’re most interested in. It takes a lot of hard work and dedication to run a new business, even if it already has a proven model. You’re going to spend a whole lot of time in your new office. Setting up equipment, learning the franchise responsibilities, hiring and training staff and overseeing operations take up a lot of time. As they say, an entrepreneur is a person who works eighty hours a week for himself to avoid working forty for someone else.
Here’s a list of five diverse franchises you might want to spend eighty hours a week running. If nothing else, you will learn that any business that can be replicated can become a franchise. Start your own business and you might just have a brand worth licensing out as a franchise to others.
5. Choice Hotels
Choice Hotels is the corporation that licenses such hotels as Quality Inn, Comfort Inn and a host of other brands. Choice Hotels made this list because it requires absolutely no effort whatsoever on the part of the franchisee. The franchisee is required to have a qualified general manager and pay for some very expensive classes. Really, that’s the only involvement you’re required to have if you want to run a Choice Hotels inn.
Choosing your staff and location well are of paramount importance, but if you do that and have the patience to wait until your start up costs are recouped, you can make a heck of a lot of money without another lick of effort. How much money can you make? Well, that depends on how much you initially invest. And that can be anywhere from $88.05k to just a lick over $14.5M.
Yes, hotels are expensive. It costs a whole lot of money to not have to work for your income.
4. Superior Wash Truck Washing Service
Superior Wash is an excellent example of how any easily-scaled business can become a successful franchise. Superior sells long term truck cleaning contracts to professional trucking fleets. The franchisee is provided with a salesperson to make these sales, as well as exclusive territory. He then sends his crews out to service the contracts by washing fleets. It’s really just as simple as the door-to-door snow shoveling and grass cutting everyone did as a child. And that illustrates how simplicity can be a great asset to an entrepreneur.
Superior Wash franchisees seem to see greater success than independent start ups because of their training regimen and sales support and techniques, but that’s not the real advantage. Besides the fact that they’re a recognized, national brand, Superior services big trucking companies. That means they know they’re getting paid, and can front the receivables to their franchisees before their invoices are paid. An independent businessman doesn’t have that great advantage.
3. Synergy Home Health Care
Want to make money while helping people and be a part of a growing industry with a lot of job security? Many people who think along those lines go into nursing. Some buy Synergy Home Healthcare franchises and employ nurses. Home healthcare is a growing industry and as the American demographic continues to age rapidly it doesn’t seem like that growth will slow anytime soon.
According to MSN.com Synergy franchises end up with 75 – 100 employees within the first two years, on average. Like all good franchise operations, Synergy offers continued training and support to help their licensees become successful and maintain momentum. The only clear downside is that the royalty fee is 5 percent of gross annual revenue, and a flat fee just seems more equitable. Given the low start up cost of just under $40,000, however, the royalty schedule isn’t exorbitant.
2. Snap-On Tools Truck
On the opposite side of the spectrum (from running a stationary gym where people come to exert themselves) is the Snap-on Tools truck, a mobile business where you bring people the tools that help them exert themselves that much less. The business requires a $135,390 initial investment and 191 hours of training, but after that you’re out on the road, selling tools at mechanics shops and job sites.
The work is not passive, it’s sales, but Snap-on is an established brand with great support and an existing customer base. If you have the head for sales and service, it’s a great product to represent. A workman simply cannot go without their tools, and the Snap-on truck is a complete mobile store.
1. Anytime Fitness
Anytime Fitness is at the top of Entrepreneur.com’s Franchise 500 list this year, thanks to its rapid expansion, low rate of failure, and the fact that nearly half of all franchise owners own more than one location. The franchise fee is one buck shy of $500 a month, and considering how aggressively their billing partners pursue delinquent accounts, that paltry fee should be very, very easy to recoup.
What makes Anytime Fitness a candidate for this list is its business model, which is as simple as it is ingenious: Give people a place they can work out 24 hours a day, 7 days a week. Most gyms that would be open all the time would require staffing all the time as well, but Anytime Fitness developed innovative automated security measures that let members come and go even when the staff is gone. That means that while a franchisee can offer personal training and customer service during regular hours, they can keep making money off their capital investment even when it doesn’t make sense to pay staff.
A shop that makes money for you 24 hours a day with 12 hours a day of expenses? Yes, please!