You’ve made the decision to enter franchising, but now you have to choose a franchise that’s not only the right fit for you but will get the best bang for your buck. There are some common qualities to look for when researching franchises with high earning potential.
Of course, there are the big guys. In researching successful franchises, you will inevitably keep seeing many of the same brands bubble to the surface. Typically, they are brands with longevity and popularity. While they may drive vast profits, those profits may also be accompanied by a hefty price tag of franchise fees and initial start-up fees. You’ll want to keep costs in perspective.
But what is the common thread among franchises that make the most money? Successful franchise profits are evident when you take note of four similarities:
Product or Service
The first common trait among franchises that make the most money is that they are either providing a unique product or service or are at least capitalizing on high demand. Perhaps they’ve cornered the market on a niche industry or have adapted to customer needs better than competitors. That’s what we’ve done at Wild Birds Unlimited. We are the franchise leader in the bird feeding and wildlife industry. We recognized an opportunity more than 40 years ago and have grown and flown with it.
Proven Business Model
Essentially, franchising success is all about the viability of the business model. For franchisees, this is the blueprint to reaching and maintaining profitability. When signing your agreement to join a franchise, you should have a clear picture of the operations, ownership style, products, support, and other benefits franchising should offer. Study both market trends and specific details in a franchise’s profit margins to determine whether it is a sound investment, and also research what level of support the franchisor provides the franchisees.
Wild Birds Unlimited is transparent with our FDD (or Franchise Disclosure Document), which goes in-depth discussing our processes, operations, and financial performance. We provide hands-on guidance every step of the journey from the development phase to on-going education and continuous support with inventory and pricing.
Another common trait you will find in the business models of franchises that make the most money is training. Wild Birds unlimited has a team of more than 50 professionals who will help to equip you with the tools and best practices you need to operate your store. Each member of the support team brings a wealth of knowledge and experience to every interaction. Supporting the success of franchisees through on-going training is good for everyone’s bottom line.
Brands that have become household names have an advantage. Consumers clearly understand what service or product they are providing, which produces a solid customer base with growth potential. Using that brand recognition to your advantage is one of the key benefits of franchising.
Of course, it is essential to understand the cost structure that affords you those benefits. Factor those costs into your research to determine your profit margins. Wild Birds Unlimited breaks down all the fees you will need to become a business owner under our highly recognizable brand name. We have a $40,000 franchise fee and project your total start-up fees to be in the neighborhood of $185,000 to about $300,000, as there are several variables which may affect pricing. In return, our award-winning franchise model helps our franchisees’ bottom line. In 2020, average gross sales for stores open a full year were $687,516.
Good to Customers and Franchisees
The last commonality to look for when choosing a franchise is to research how loyal the customer base is and whether or not the brand is growing. You will also need to analyze how the franchise is looking out for the best interest of the franchisee. Wild Birds Unlimited has more than 350 locations throughout the United States and Canada and growing, proving the confidence franchisees have in our business model.
If the potential franchise profit numbers look good to you, and you want to be a part of our flock, get started by filling out our contact form today!