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Most Profitable Franchises to Start Today

Guest post by: ray haiber

Article Overview: Provides info about what types of franchise opportunities are generally considered the most profitable in the Marketplace today. Also provides some of the common characteristic that highly profitable franchises share.

Most Profitable Franchises to Start Today

As a professional small business broker and franchise sales consultant I am often asked what types of franchise opportunities are the most profitable to start and own. From my experience there are a few common factors or characteristics that give some franchise business models a definite edge or advantage when it comes to the ability to consistently produce high profit margins. Some of these advantageous characteristics include having low overhead expenses, limited competition, and not offering a commodity type product or low barrier services. Below are a few franchise opportunity categories that share some of these characteristics and are generally regarded as having the right stuff to be very profitable.

Financial Services Franchises:

Franchises that offer financial related services such as income tax preparation, accounting, and consumer insurance services generally enjoy very high profit margins for a number of reasons. This includes low overhead expenses because of generally lower staffing requirements and no absolute need to rent high traffic (and expensive) retail space. And because they offer professional type services the barrier to entry is a little higher than starting the average home cleaning or janitorial franchise which helps limit competition. And last but not least financial franchises like insurance and tax franchises offer services that have the ability to generate repeat and residual income which can do wonders for the bottom line.

Medical and Health Care Franchises:

Medical and health care related franchises are well positioned to reap the benefits of an ever expanding market due to major and favorable demographic trends such as the inevitable aging of the baby boomer population. Traditionally health care and medical related franchises that offer services like assisted living, senior home care, and lab testing have very high profit margins and are generally considered recession resistant. These factors bode well for maintaining high profit margins for these generally non-discretionary services that will always be in demand for the foreseeable future.

Home Based Franchises:

Some of the most highly profitable small businesses I have ever worked with as a professional business broker were home based. In my opinion the benefit of not having the expense of a monthly lease payment can not be overstated in terms of bottom line profitability. Other profitable advantages of owning a home based franchise business include no daily commuting or travel expenses, as well as certain tax advantages that could put more money in your pocket at the end of the year. Be sure to consult with an accountant or CPA for more details about the tax advantages of starting a home based franchise or business.

Internet Franchises:

Starting an Internet franchise business offers many advantages in terms of setting the stage for being very profitable. This includes the fact the most Internet franchise opportunities being offered today can easily be operated from a small home based office with just an internet connection, computer, desk, and a chair. Consequently your overhead expenses will be much lower than that of a typical brick and mortar retail franchise business because there are no lease expenses or expensive equipment and inventory expenses. And generally most Internet franchises being offered today are designed to be owner operated so there are no expensive staffing requirements either.

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Article Tags: franchise opportunities, profitable franchises



Related Forum Posts
Re: Most and Least Profitable Businesses to Start - I can say something about the "Least Profitable Businesses to Start" when someone thinks about creating a product before knowing what the market really wants. This happens more often than people realize. People often get trapped into coming up with something it might work but if the market doesn't want that kind of stuff, no matter how innovative the idea may be, it'll turn bad. Like I might be able to come up a way to "... store all of my spam emails into one junk box and keep it stored on the web forever!" -- hey, who wants that kind of stuff.
franchisebrief.com good clean design - I actually really like the design - it's clean and not busy. The information is easy to find. You mentioned you didn't want to monetize from the site thru the use of adwords but what about JV'ing with all or most of the Franchises you are referring people to. Is that possible in the Franchise industry?
Re: Franchise Support. What is it to you? - To be honest I have never been a big believer in Franchises. Which of them did you have the best and worst experience with, when you called in as an "interested buyer"?
My reading log - Hi OmnivoreInk, Before starting my business, I read the following books as research: -"The Art of the Start" by Guy Kawasaki -"The AdSense Code" by Joel Comm -"Don't Think Pink" and "Mind Your X's and Y's" by Lisa Johnson And since then I've continued my "research" by reading (in this order): -"Technical Tennis" by Rod Cross -"For One More Day" by Mitch Albom -"The Twits" by Roald Dahl -"Little Black Book of Connections" by Jeffrey Gitomer -"The Secret" by Rhonda Byrne -"The Profitable Retailer" by Doug Fleener -"Blink" by Malcolm Gladwell -"Little Gold Book of YES! Attitude" by Jeffrey Gitomer -"The Chronicles of Narnia: Prince Caspian" by C.S. Lewis -"Little Green Book of Getting Your Way" by Jeffrey Gitomer -"Harry Potter and the Deathly Hallows" by J.K. Rowling And I'm currently reading and am in the process of finishing the following: -"There's No Such Thing as Public Speaking" by Jeanette and Roy Henderson -"The Tipping Point" by Malcolm Gladwell -"The Book of Tells" by Peter Collett -"Little Red Book of Sales Answers" by Jeffrey Gitomer -"Chocolates on the Pillow Aren't Enough: Reinventing The Customer Experience" by Jonathan M. Tisch -"The Artist's Way: A Spiritual Path to Higher Creativity" by Julia Cameron -"The Inner Game of Tennis" by Timothy Gallwey
Clothing Franchises - I believe that there are quite a few franchises for larger brands such as Diesel, Lacoste and Bennetton etc... but I am not sure how these contracts work. In New Zealand, Canada & Switzerland Clothing Franchises are for smaller designer brands & Outdoor clothing -- such as Bivouac, the great Outdoors etc Ian


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