If you are someone who is in pursuit of business ownership in the franchise industry or wants to franchise their own successful business, then this guide is for you! But before you ask us, “Which industries are most likely to franchise?” We must tell you that franchising could be a great decision for you if you have a successful business model.
Without getting the basics right, you are obviously going to miss the head of the nail. So now, let us get started and see our list of industries that are most likely to franchise.
Which Industries Are Most Likely To Franchise?
According to Fortunly, there are over 750,000 franchise establishments in the U.S. alone, with an economic output valued at $670 billion. Thanks to the popularity of franchise models, the figures look so good!
So, if you are a prospective franchise or run a business currently and want to find out the industries that are easy to franchise, then here’s a list you must check.
1. Food & Restaurant Industry
The food and restaurant industry is one of the top industries to franchise in. It does not matter whether you run a food truck, quick service restaurant, coffee shop, diner, etc- food is something that everyone loves.
Some of the biggest and most successful franchises, such as McDonald’s, Subway, and KFC, are all food franchises. These brands frequently see potential buyers asking about franchise opportunities. You may wonder why?
This is because of a successful business model, solid training and support, and a huge base of loyal customers, among others.
So, if you want to build a franchise business, then opening a food-related business could ensure success.
2. Home Services
The home service industry is valued at $500 million today and is expected to boom in the coming years as well.
This industry saw a major boom even during the pandemic, which shows that it’s a recession-proof and safe industry to franchise in.
And that’s not it! One of the best things about the home services industry is that it requires less investment to expand as compared to other franchise industries.
Since there are a plethora of sectors within the home service industry, you can choose the one that fits your interest the best and begin your franchise journey.
3. Wellness & Health
Post Covid, there has been an increased sense of wellness and health improvement among people of all age groups. And because of this, businesses related to health and wellness have been seeing exceptional growth.
The pandemic, in fact, shifted the dynamic so much that people started taking workout sessions online, and this is the kind of flexibility this industry offers now.
If you run a gym, pilates class, yoga class, or any other kind of health-related business, then you are in an industry that can be easily franchised and holds a lot of potential for growth.
4. Package Shipping & Mailbox Rental
With online shopping records hitting the roof, there has not been a time when sending parcels was so prevalent. This is the era of online shopping, and the shipping business is here to stay. So what does this mean for you? Profits!
Package and shipping could be your ancillary business, and along with it, you can start a mailbox rental. Mailboxes are like mini-storage units that are low-maintenance and have low overhead costs, and they can help you cover the day-to-day costs and the salary of your employees.
The best part about this business is that it has a low start-up cost and can be run by just two to three staff.
5. Pet Services
With so many pet parents worldwide and their desire to groom their pets from time to time, have them looked after, and treat them with the love they deserve- this business is a great franchise opportunity.
If you are already running a successful pet business, then you can boost its growth immensely by franchising it.
In addition to this, there are multiple varieties within the pet service niche that you can specialize in. You can either open a grooming studio, pet training center, pet food shop, and more. The opportunities are endless.
The vending machine business is another option that is quick to franchise.
Vending is more of a hands-off business model, where the business owner simply needs to install the vending machine at the right place and fill it from time to time.
Another great thing about the vending business is that it requires a low-cost investment, less time, and management effort.
7. Child Care
If you love kids and are naturally good with them, then starting a childcare business could be really profitable for you.
There has been an increase in the need for dual household income, which has increased the demand for child care.
Many families need these specialist services, especially during their working hours, and are willing to invest in them despite uncertainty and economic sessions.
And that’s not it! There is an increased interest in early childcare education, extracurricular activities, after-school care, etc. So, you can choose any of these sectors within the childcare niche and expand your business.
This one’s probably the most expensive business to invest in, but the demand for the retail industry is ever-green.
Within the retail industry, there is so much under the sun that you can specialize in. Be it clothes, shoes, handbags, or even electronic items, the list is endless.
Surely, retail businesses require a huge amount of investment, but it is most likely to franchise.
However, the most important aspect of franchising a retail business is replication. So, if your business can be replicated easily, then you can franchise it.
9. Senior Care
Just like child care, senior care is always in demand and is one such niche that you can explore and expand easily.
It has been seen that seniors prefer to age respectfully and gracefully within the comfort of their homes instead of living in a care home.
If you are someone who wants to make a difference in someone’s life while still making enough money, then you can explore this niche, as it can be franchised easily.
Other Popular Industries That Are Most Likely To Franchise
The franchise industries that we shared above are the most popular kinds that are most likely to be franchised. However, there are more industries that you can explore, including:
- Travel industry
- Hair salons
- Auto repair
- Cloud kitchens
- Personal services
- DIY industries
- Financial services
- Entertainment, and more.
Factors That Make A Business More Likely To Franchise
If you think a successful business of any kind can be franchised, then you are wrong. Franchising is a long road, and there are not one but multiple factors that you need to have in your business in order to franchise it. Let’s have a look at them:
A proven business model
The first and foremost thing that you need in order to franchise your business is a proven and successful business model.
Without a proven business model, your franchises would have no direction and no goal. So before you decide to franchise your business, ensure that you have a proven business model that can be replicated easily.
A strong brand Presence
To ensure success as a franchisor, you must ensure that you have a solid customer base and that your brand is known and trusted by people.
Franchising is all about creating a brand first and then using the trust that you have built to expand your business.
Without a strong brand presence, you cannot expect people to invest in your business and buy your franchise.
Without customer demand, business expansion via franchising is of no use.
So, decide to franchise your business only when it has a high demand for the products or services that you are offering. This will ensure positive results.
One of the most crucial aspects of franchising is that you should have a systemized operation so that your business model can easily be replicated by your potential franchises.
No one wants to invest in a business that is not profitable. Before you decide to franchise your business, ensure that it is truly successful and profitable.
Before a potential franchisee signs the franchise agreement, you are supposed to disclose the financials of your business.
So, it is important to keep your business in good standing so that the interested person feels confident in investing in your business.
When you decide to franchise your business, it is extremely important to study the industry and weigh all the pros and cons of operating a franchise.
If done correctly, franchising any kind of business can be good for you. If you are not sure about the best niche to do this with minimal risk, then we hope our guide on “Which Industries Are Most Likely To Franchise?” was helpful to you.
Which is the most popular franchise industry?
The quick-service restaurant industry is the most popular franchise industry, comprising more than 276 billion U.S. dollars of the industry’s total economic output.
Which are the three biggest franchises in the world?
KFC, McDonald’s and Taco Bell are the three biggest franchises in the world.
What is the failure rate of a franchise?
The failure rate of a franchise usually lies around 20% to 50%, which is why you should do your research carefully before starting a franchise or before investing in one.