What Makes a Franchise Profitable?<\/h2>\n\n\n\n
If you\u2019ve chosen the right franchise, it has a proven track record. It\u2019s succeeded in dozens, hundreds, or even thousands of locations across the country (and maybe beyond). Here\u2019s why.<\/p>\n\n\n\n
Brand Recognition and Reputation<\/h3>\n\n\n\n
If you start a business with your own name and an unfamiliar logo on the door, you start from basically nothing. You must meet potential customers or clients, introduce yourself, and tell them what you do and why you do it better than the business owner down the street or in the next town.<\/p>\n\n\n\n
You don\u2019t have to do any of that if you invest in a successful franchise operation. Others who own franchises have already done that for you. If you own a Dairy Queen store or a Merry Maids house cleaning service, the performance and reputation of other Dairy Queen or Merry Maids franchisees have already made the introduction for you.<\/p>\n\n\n\n
Your customers will do business with you because they\u2019ve done business in the past with others who carry the same corporate name, logo, offerings, and ways of doing business that you have.<\/p>\n\n\n\n
But that cuts both ways. If customers have been ill-treated by other franchisees, they\u2019ll assume the same from you and stay away from your business. That\u2019s why it\u2019s critical to buy into a highly reputable franchise operation.<\/p>\n\n\n\n
Initial Investment vs. ROI<\/h3>\n\n\n\n
You can buy a business franchise for a couple of thousand dollars \u2014 or for several million. Whatever you\u2019re considering putting into the venture, you\u2019re probably wondering when you\u2019ll get your initial investment back.<\/p>\n\n\n\n
You can determine your return on investment (ROI) by dividing your annual net profit by your initial investment and multiplying it by 100. So, if your initial investment is $250,000 and you make a net annual profit of $50,000, your ROI is 20%. The higher your ROI, the quicker you can expect to recoup your initial investment.<\/p>\n\n\n\n
Until you actually go into business, you can only estimate your net profits based on the franchisor\u2019s estimate or your own rough calculations.<\/p>\n\n\n\n
Growth Potential and Market Demand<\/h3>\n\n\n\n
Does your market need and want the products or services you\u2019re selling? Will the need be just as great in a year or five years? That\u2019s what you must determine before laying your money down and buying a franchise.<\/p>\n\n\n\n
By law, you\u2019ll receive a copy of the franchisor\u2019s Franchise Disclosure Document (FDD) before you commit to purchasing a location. Among other information, this document will include a financial statement detailing the organization\u2019s economic health. If you don\u2019t know how to read this, let your accountant review it.<\/p>\n\n\n\n
You might also talk to other franchisees to see what the bottom line really looks like.<\/p>\n\n\n\n
Take your time, and never feel rushed to buy a franchise before you\u2019re confident that you\u2019re making the right move.<\/p>\n\n\n\n
Support and Training From the Franchisor<\/h3>\n\n\n\n
The years \u2014 or decades \u2014 of success the franchisor has racked up is one of the key reasons you consider purchasing a franchise. It\u2019s only over time that the logo becomes familiar and you receive a built-in consumer base. Your first customers trust you because they\u2019ve come to depend on other franchisees of the same operation. That\u2019s how trust gets built in this business model.<\/p>\n\n\n\n
A good operation will be eager to train new franchisees on what to sell and how to sell it. After all, their reputation depends on their ability to carry on the traditions, processes, and procedures that made the franchisor large and successful enough to offer franchises in the first place.<\/p>\n\n\n\n
Your franchise\u2019s start-up training and ongoing support are especially essential if you\u2019re a first-time business owner<\/a>.<\/p>\n\n\n\n Now that you\u2019ve learned some of the building blocks to franchise success, here\u2019s a short list of franchising possibilities in various industries and at different cost points. Review it to get your search started.<\/p>\n\n\n\n While Ray Kroc\u2019s fast food restaurant wasn\u2019t the first franchisor, it was \u2014 and still is \u2014 among the most successful and well-known. Today, there are over 40,000 McDonald\u2019s franchises in more than 100 countries and territories. Now that is true brand recognition!<\/p>\n\n\n\n Freeway is known for its comprehensive training program and ongoing support<\/a>. Acting as independent brokers, Freeway insurance agents have access to numerous leading brands from name-rep insurance carriers. Freeway has a few hundred franchisees across the U.S. and plenty of territory for new franchisees.<\/p>\n\n\n\n Planet Fitness went from its first franchise in 2003 to more than 2,600 of them today. It now has impressive brand recognition and is one of the largest fitness club franchise systems in the country, both in terms of locations and member count.<\/p>\n\n\n\n Sit-down restaurant, bakery, coffeehouse. However you want to refer to your local Panera Bread franchise location, it\u2019s doing quite well. While the first franchise wasn\u2019t sold until the late 1990s, there are now more than 2,200 franchise and company-owned locations in operation. The model makes it a deep-pocket investment. The company sells commitments to open six or more restaurants rather than selling single locations.<\/p>\n\n\n\n The largest hair salon in the world began \u2014 and exists today \u2014 with a focus on cheap, no-frills haircuts. The first franchise was sold in 1983, and today, the brand has grown to more than 4,400 locations in the U.S. and Canada.<\/p>\n\n\n\n From modest beginnings in the late 1970s came a franchise organization that cleans some 120,000 homes in the U.S. and Canada through more than 500 franchises. Trust and a golden reputation are critical when you\u2019re a franchisee seeking work in a person\u2019s home, and Merry Maids has achieved that level of brand loyalty and acceptance.<\/p>\n\n\n\n Some of the key reasons to become a Freeway franchise owner include top-tier training and ongoing support, brand loyalty, and the brands at your command.<\/p>\n\n\n\n Freeway is one of the nation\u2019s largest personal lines insurance companies. We\u2019ve established a coast-to-coast franchise system<\/a>, and give our agents access to some of the best-known brands in the industry.<\/p>\n\n\n\n Want to learn more? Simply call your Freeway Insurance franchise representative at 877-822-3024<\/a> today. <\/p>\n\n\n\nProfitable Franchises in Which to Invest in 2025<\/h2>\n\n\n
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<\/figure><\/div>\n\n\n1. McDonald\u2019s<\/h3>\n\n\n\n
2. Freeway Insurance<\/h3>\n\n\n\n
3. Planet Fitness<\/h3>\n\n\n\n
4. Panera Bread<\/h3>\n\n\n\n
5. Great Clips<\/h3>\n\n\n\n
6. Merry Maids<\/h3>\n\n\n\n
Why You Should Consider Investing in a Freeway Insurance Franchise This Year<\/h2>\n\n\n\n