What is the most profitable franchise
The easiest way to establish your business place with the minimal risk and experience required is to buy a franchise. Franchises bring up the entrepreneur in you and give you a golden opportunity to establish an already set up business place with virtually no risk of loss. Franchisors may give you a lot of help and support but in the end it all comes down to the profit figures of your business. So before investing, you should know what is the most profitable franchise and where to invest to get maximum returns.
Let’s understand what is the most profitable franchise and what does it take to be the most profitable franchise.
Popular Brand Name
The first important quality which separates a profitable franchise from a not so profitable one is the brand name and its influence. Brand name and reach among the customers are directly related to the profit margins of the franchise. Suppose there are two companies selling the same commodity. The first one has a very popular brand name and has made its name among the people through advertisements while the other company doesn’t have a big brand name. It can be seen then 80% of the time a consumer will go to the first store. The consumers are even willing to pay more just to be associated with the brand. Thus a franchise of the big brand company will be more profitable.
Proper franchise research and training
The initiative to help and research shown by the franchisor also decides whether the franchise will be profitable or not. The franchisor which conducts proper site and market research before setting up of the business brings in the most profits. Similarly, giving proper training and knowledge to the new store boosts up the profitability of the franchise.
Importance of commodity
The franchises which deal with regular everyday commodities like FMCG ( Fast Moving Consumer Goods ), entertainment and daily use consumables are typically the most profit making ones. This is because their sales never go down as they offer the basic day to day facilities. People see them more as a basic necessity than a luxury. So they end up being in the list when you search for what is the most profitable franchise.
What is the most profitable franchise?
Based on the above factors, here are the franchises that turn out to be most profitable:
- Sonic Drive-In
- Great Clips
- Taco Bell
- Hardee’s Restaurants
- Sport Clips
As it can be seen, the list of what is the most profitable franchise is dominated by franchisors giving services in the field of consumables and entertainment. PuffCity dealing in smoke shop and other smoking items, is among the top profit making franchises. PuffCity is also a good place to start a franchise business because the investments needed are low.
Now you know what is required to be the most profitable franchise. We have also provided you with the list of what is the most profitable franchise based on a variety of factors.