The Most Profitable Franchises: Six Key Things to Look for When Choosing a Franchise

There’s much to think about when deciding what franchise to invest in. You want to choose an industry you’re passionate about and a brand whose culture and mission you align with. But most importantly, you likely want a business in which you can make money.

But which franchise is most profitable? And how are successful franchises different from the rest?

There are certain types of franchises that are more profitable than others. Moreover, there are some key components that set these profitable franchises apart.

It’s no secret fast-food franchises are often profitable. But they aren’t the only game in town when it comes to owning a profitable franchise. And depending on the market, they might not be the highest profit franchises.

Here’s a closer look at some other types of high-profit franchises:

• Pet Services: Animal enthusiasts will love owning a franchise that offers pet supplies and grooming. This type of franchise is affordable to own and growing in popularity. According to the Humane Society, 70% of U.S. households owned a pet in 2021-2022 versus 59% in 2017-2018. Clearly, the American love affair with pets is growing. This makes a dog franchise like Woof Gang Bakery a potentially high-profit franchise opportunity.
• Senior Care: Home care, medical care, hospice, and companionship care are in growing demand. As the U.S. population ages, the need for care increases, making this a developing industry.
• Real Estate: This industry encompasses everything from home buying and selling to fixing and flipping. It also includes services such as real estate photography and home staging. These services are frequently in demand but can be subject to fluctuating market circumstances.
• Personal Services: Day spas, salons, men’s grooming services, as well as fitness and wellness locations are thriving. And are all available as franchise businesses.
• Business Services: This vertical encompasses services like staffing, tax preparation, business coaching, signage, and printing. As more and more workers engage in hybrid arrangements, these franchises can be in high demand.

A lot goes into what makes a franchise profitable for franchise owners. Some important indicators of brand health and a proven business model include:

• Gross Sales: These are used to calculate royalty payments. They must be considered along with sales trends and profits and losses for a clear picture of a brand’s financial performance.
• Growth Rate: Consider whether a brand is growing or shrinking and at what rate. These metrics will indicate if a business is meeting its performance goals or is stagnating.
• Expenses: Knowing what it’ll cost you to own and operate your business will help you calculate your break even. Each franchise brand comes with initial investments to begin operation. This includes the initial franchise fee, as well as ongoing franchise costs. It’s essential to find the brand that fits within your budget. This will ensure the greatest opportunity for profitability.

All of these should be considered when looking to launch the most profitable franchise possible.

Choosing a Franchise: Top Six Things to Consider

Select a brand to invest in carefully. Beyond profitability and brand recognition, there are many other important considerations. Answering these will lead you to a match for your personal and financial goals. Here are six top factors:

1. Know yourself: Choose a brand you’re passionate about running. Specifically, select one that aligns with your values and your goals, that fills a need in your community, and is one you can afford.
2. Investigate the brand’s performance: Learn about a franchise’s system by reading the company’s Franchise Disclosure Document (FDD). An FDD will outline costs and is the clearest picture of the brand’s overall strength.
3. Support: How much training and marketing support is offered by the franchisor? This is important to the brand’s success overall and is a huge part of why you buy a franchise in the first place.
4. Location: Many franchisors will help you choose the best real estate for your business. Locations that are visible, accessible, and near potential customers will help your franchise become profitable.
5. Your commitment: Franchisors will often expect a certain level of involvement from franchisees. Make sure it aligns with the amount of time you want to spend running your business. It is also worth investigating if you would be permitted to delegate to a management team in the long term.
6. Existing franchisees: Current franchisees are an excellent source of information about what their franchise requires for day-to-day operations. They can also enlighten you about the franchisor/franchisee relationship.

Small business owners are smart to do their homework. As you research, you’ll likely find what the most profitable franchise is when it comes down to all of the above factors.

Woof Gang Franchise: Join Our Pack

Pet services are among the most profitable franchises to own. Woof Gang Franchise is the leading grooming franchise concept in North America.

Woof Gang Bakery & Grooming has more than 200 locations open or under development. Our network offers a dual-income revenue source with dog grooming and retail. With this growth, we’ve also seen our store sales increase by 16% in the past five years with an AUV at $665,000. We’re looking for entrepreneurs with a passion for dogs and profits to serve our loyal customer base.

If you love dogs and dog people, need a pet store in your neighborhood, and will thrive in the fast-paced environment of a leading specialty retailer of pet food, pet supplies, and professional pet grooming, we’re excited to hear from you. Learn more about joining our pack! Request franchise information today.