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College Business 101 courses say that the goal of any business is to make money. Franchisors understand this and strive to provide a winning combination of both business type and business profitability.
Sometimes, a prospective franchisee is set on a certain type of franchise. However, it's good to think about certain industries that have shown a history of success for others in achieving a profitable franchise before becoming too attached.
Below we've profiled three of the most successful types of franchises at this point in time. Within each, you will find a plethora of choices to fit your style and fill your wallet.
1. Food Franchises
Hands down the most popular, food franchises are also consistently successful. That's why so many franchise buyers choose them. Offerings include fast food and pizza favorites like Burger King, Pizza Hut, and Baskin-Robbins. Most are well-known national and international brands, like McDonald's. And the high demand for these types of restaurants put them in the top money-makers. Of the top ten franchises, eight are food-related retail locations.
2. Travel-Related Services
This category is one that changes a lot, but with the U.S. and other countries having strong economies, people are traveling more, yet have less time to do the planning and coordinating. With a bit more expendable income, travelers are looking to spend their downtime in hotels or sailing the seas. Profitable travel franchises include Marriott, Choice, and Intercontinental hotels. Of course, while on the road, rental cars are a mainstay in places franchise operators like EuropCar and Hertz.
3. Home Services and Business Services
Private demand for specialized home and business services is up and it can be lucrative for franchise operators. Many people just don't have the time, know-how, or desire to do what this sector of franchises offers. Owners focus their efforts with national chains like Merry Maids for home cleaning, Weed Man Lawn Care to enjoy the outside without the strain, and other home maintenance services that keep air conditioners and heaters in top-notch condition. More specific services like H&R Block and Minuteman printers offer peace of mind and a highly recognized business model and brand.
While some researchers suggest success in these categories, there are many different methods for trying to determine which franchises will lead to profitability. For example, the evaluations of Franchise Business Review include owner happiness and overall franchise growth in its considerations.
Of course, any industry can be profitable if it's something you're passionate about and your area has a need for that industry's product or service. Franchise Direct hashundreds of franchise profiles ranging across the gamut of industries for you to browse, so happy searching!
Susan Guillory is the President of Egg Marketing & Communications, a marketing firm specializing in content writing and social media management. She’s written three business books, including How to Get More Customers With Press Releases, and frequently blogs about small business and marketing on sites including Forbes, AllBusiness, The Marketing Eggspert Blog, and Tweak Your Biz. Follow her on Twitter @eggmarketing.