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, a brand whose culture and mission you align with, and a business where you can make money. There are certain types of franchises that are more profitable than others, and some key components that set these profitable franchises apart. Let’s get into the details.

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. 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, making 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: Encompassing everything from home buying and selling to fixing and flipping, along with services like real estate photography and home staging, these services are frequently in demand but can be subject to fluctuating market circumstances.
•  Personal Services: As more people recognize the importance of investing in their personal care, franchises that offer personal services can thrive. Day spas, salons, men’s grooming services, as well as fitness and wellness services, are all available as franchise businesses.
• Business Services: Covering services like staffing, tax preparation, business coaching, signage, and printing, as businesses bounce back from pandemic shutdowns, these franchises can be in high demand.

A lot goes into what makes a franchise profitable. Some important indicators of brand health include:

•  Gross Sales: Gross sales are used to calculate royalty payments and 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, indicating 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 whether you’ll be able to earn profits with a brand. Each franchise brand comes with initial investments to begin operation. It’s essential to find the brand that fits within your budget, while also offering the greatest opportunity for profitability.

Choosing a Franchise: Top Six Things to Consider

Select a brand to invest in carefully. Beyond profitability there are important considerations that will lead you to choosing the best opportunity for you and your personal and financial goals. Here are six top factors:

1. Know yourself: Choose a brand you’re passionate about running, 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 a franchisor offers 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 and that you’re permitted to delegate to a management team.
6.  Existing franchisees: Current franchisees are an excellent source of information about day-to-day operations and the franchisor/franchisee relationship.

Woof Gang Franchise: Join Our Pack

Pet services are among the most profitable types of franchises, and 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, offering 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.

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.