You hear a lot of talk of how owning a franchise can be a great moneymaker, and of course, it is enticing, but are all franchises alike when it comes to profitability?
Unfortunately, the answer is no. There are a lot of factors that go into making a franchise a success. Part of it has to do with the franchisor and their brand and part of it has to do with you, the franchisee, and how much energy you invest into your new business.
While there is no, single formula for picking the best money-making franchise, there are certain qualities or criteria that you should be looking out for if you are in the market for a new franchise business.
Here are some qualities best money-making franchises have:
Some franchisors are unfortunately in the franchise business just to make money. They don’t truly care about how your units do as long as you pay your fees adding to their coffers. The best money-making franchises, however, are not like this. They have a committed management who are passionate about spreading their brand and about helping other business owners find success.
A committed management will offer you training and mentoring and really listen to your needs as a franchisee. You want to join a franchise program where everyone is as passionate about the products and services you are providing and willing to work as a team to make the franchise a success.
A Strong Bottom Line
Looking at the financials of any business can be tricky, especially if you have never run a business before. One common mistake would-be entrepreneurs make when researching franchises is that they see high gross sales figures and get excited about how much money they will make by joining that franchise. While gross sales figures are important they don’t tell the full story though. This number doesn’t factor in all the expenses of running a business, all the bills you have to pay to keep everything operational and all products in stock.
The number that will give you the best idea of what you can earn personally from being a business owner is the net profit. You want a large net profit because that means that your business is successful enough to earn you a nice personal income.
A Passion for What They Do
Another key ingredient in a successful franchise is that everyone involved has a passion for what they do. Life today is fast-paced and it can be hard to keep up with all the new trends that might affect your franchise. That is why you want to join a franchise that is very passionate about what they do and who are always looking for new ways to improve upon the experience of their customers. You want to join a franchise program that isn’t afraid to think outside the box when trying to make improvements to the business.
A Strong Support Structure
This goes a long with a committed management. A strong support structure for franchisees can really help make a franchise a money-maker. When franchisees have advertising and marketing support, opening day support and other important training pieces, they are in a lot better shape to be successful then if they were left to fend for themselves. A strong franchisor will offer you the tools you need to cut costs without cutting quality and teach you how to run an efficient shop. Try to stay away from franchise programs which offer you very minimum support.
A Strong Brand
One of the benefits of signing onto a franchise instead of starting from scratch yourself, is because you will already have a well-developed brand behind you. The key though is to choose a brand that you strongly believe in and that matches all your core values as a business owner and as a human being. If you and the parent company are always clashing about differences in overall beliefs or mission or if you are constantly embarrassed by what they or other franchisees are doing, this will only hurt your business. The best money-making franchises have a strong brand with a clear set of values that most people share.
Quality Product or Service
While all the things we have discussed so far are very important, none of it really matters if you don’t have a quality product or service. Take for example, restaurant franchises. It all starts with delicious food. If you don’t have food that your customers are going to crave, it doesn’t matter how smooth your business runs or how hard you work, your restaurant is not going to be successful. The starting point always has to be a product or service that is going to draw people.
Because markets can get oversaturated really quickly with too many of the same type of businesses popping up on all the street corners, you need to make sure that there is plenty of more room for any franchise units you want to develop. The worst thing for your business would be being in direct competition with your fellow franchisees.
The Rest Is Up To You
Make sure any franchise you are looking to invest in have these qualities and you will be able to be confident that you are picking one of the best money making franchises out there. Don’t forget though that what you put into the business matters as well. Your passion, hard work and drive is also an essential ingredient, otherwise while your fellow franchisees thrive, you will fail.
Why Choose Chaps Pit Beef
A great example of one of the best money making franchises is Chaps Bit Beef. Started in 1987 in Maryland as a wedding gift from a father to his daughter and son-in-law, the franchisor has grown from a little shack to two thriving restaurants and they are looking for fellow barbecue enthusiasts to join their franchise program and help them expand their brand. Well known for their delicious pit beef sandwiches and homemade sides as well as their friendly customer service, Chaps Pit Beef is a brand you will want to get behind. And they are dedicated to helping their franchisees thrive in an industry that has such potential for growth.