Franchising is an opportunity for entrepreneurs to enjoy their dream of business ownership without going through the headaches, heartaches and hassles of an independent start-up. Franchises are established businesses that have a proven model that has been market tested. They come in all shapes and sizes. About one in every seven businesses in the U.S. are franchises, that’s about 750,000 franchises, employing about eight-million people. What accounts for the popularity and growth of the most profitable franchises?
Franchising is a team effort. That’s appealing to many entrepreneurs who don’t want to go it alone trying to get a business off the ground. The team includes you, the franchisee, the franchisor and a network of like-minded franchisees—all who work to grow their franchise and the brand. Your success is their success and vice versa. You have a support group guiding you, networking with you and cheering you on to reach your business goals. No need to re-invent the wheel with a new business, in franchising, you’re simply replicating the wheel.
Finding the Most Profitable Franchise
That being said, if you want to build the most profitable franchise, you’ve got to do your homework. Keep in mind, there are many choices available to you. Some are well-established brands, others are emerging franchises, there is no special formula ensuring success. It’s about researching brands that align with you, meaning– your skill set, your goals, your interests, your bank account, your location, your culture. The first step is on you. You’ve got to narrow the search.
There are many franchises appealing to all different owners. There’s food service, retail and service-related, just to name a few. You’ve got to hone in on what you’re passionate about. This is a money-making venture, so you might as well enjoy what you’re doing since you’re the boss.
If you are looking for profitable franchises, year after year, the top money-making franchises are in the food service industry. Studying franchises, though, you’ll find that for many of these brands the financial qualifications to become a franchisee may not be realistic and the food service industry can be a challenge if you do not have past experience.
It stands to reason that partnering with a franchise that is affordable and financially strong would provide some assurance that there is profit potential. Look at the franchisor’s Franchise Disclosure Document (FDD). This is a legal document that must be given to individuals interested in buying a franchise in the U.S. as part of the pre-sale due diligence process. This document is the transparency of the franchisor to describe finances and the relationship between franchisor and franchisee. Franchising with any brand requires franchisees to adhere to strict guidelines and regulations stipulated by the franchisor.
Another way to determine profit potential is to look at the franchise’s growth rate. Is it steady and stable? Is there marked growth over a period of time? Have there been failures? If so, why? Talk to current franchisees, as this is where you will get the story you can’t find on paperwork. Ask them about revenue. Try to glean the big picture of day-to-day life with the franchisor. Ask how the training and support is and challenges they have faced. Are they satisfied with the relationship that they have with the franchisor? Would they do it again? Remember, every business will have ups and downs, you will need to determine for yourself if these are obstacles you can conquer.
Another way to position yourself for a profitable franchise is to search for a franchise that satisfies consumer demand or a niche in the marketplace. Stay away from fads, they don’t show long term growth potential. However, finding something that is trending or fulfills a consumer necessity is promising. Remember too, being part of a niche franchise that supplies something that the competition doesn’t bring to the table is an enviable opportunity.
As a franchisee, you are paying a franchise fee to start a business using a brand name and their model and operating systems. Your job is to be the owner/operator of your franchise location—essentially, your business. Therefore, you have a responsibility to put your best forward to grow your business. That means attend the franchisee training, ask questions, and understand the daily operations of this business. If you need help from the franchisor—ask. There will be on-going support and the franchisor will keep you updated on system changes or innovations in this industry. You have a responsibility to everyone on that team to follow rules and requirements and brand standards.
While you are a franchisee, you are also, ultimately the boss. You are responsible for the bottom line of your franchised unit. That means you are hiring, training and managing your business. You need to be prepared for this venture. Franchising is a business and it takes hard work. If you are looking for the most profitable franchise, remember you get out of it, what you put into it. Your revenue must keep your location afloat, you must pay royalties to the franchisor, then you decide how to use the rest of the earnings. That may mean you keep it, spend it, invest it back into the franchise or think about being a multi-unit owner, creating even more profit potential.
Navigating Growth as a Franchisee
Once you choose a franchise there are a few things you can do to increase your chance of success. First and foremost, follow the franchise model. You’ve got the standardized playbook, it has been proven to be effective, so there’s no need to deviate.
Secondly, listen. Taking in all the information from your franchise training is important, but the most profitable franchise owners also listen to fellow franchisees and take advantage of their advice. Go to your franchisor for questions or to help put out fires, that’s why they are there. Learn from your customers. Listening to what your customers want and need from you points you in the right direction as to how to make improvements satisfying demand.
Lastly, franchising, like any business venture is hard work. You will be very busy getting your location off the ground and likely will be putting in many long hours. But take the time to enjoy the adventure. Try to balance work and home life. In order to be an effective owner and manager you’ve got to recharge.
Wild Birds Unlimited is a Win-Win
This is why it’s very important to invest in a franchise that you are passionate about. At Wild Birds Unlimited, our franchisees enjoy sharing their knowledge of bird feeding with their customers while living out their dream of business ownership.
Wild Birds Unlimited is a leader in the wild bird feeding industry. We are a unique franchise because we have developed a niche in the community by bringing people and nature together like no one else does and by being a true resource about wild birds in the neighborhoods we serve.
As a franchisee you leverage the strength of our brand, benefit from training from industry specialists and you join a community of business owners who share your enthusiasm for the hobby of backyard bird watching. Which means you have a family of fellow franchisees who you can collaborate with, share ideas and utilize as a support network.
Not only are we a standout with the quality of our products and customer service, but we have an affordable franchise fee of $40,000 and a complete Item 19 that outlines the possibilities for success. This combination of affordability and transparency fuels our continued growth with more than 350 locations in North America and continue to rank high for franchisee satisfaction.
If you are ready to come fly with us, let’s get started. Inquire to learn more by filling out the form on this website.