Franchising is one of the most reliable investments that you could do with your hard-earned money. When starting to franchise, you will most likely have many questions in mind: How to approach for the best franchise opportunity? How much are the start-up costs? What are the best franchise opportunities in USA? And the list goes on.
The journey to becoming a franchisee wouldn’t be easy. Educating yourself is the best way to help you make a sound decision when choosing the best business franchise opportunities.
In this article, you will learn how to choose the best franchises in the USA and everything you need to know about becoming a franchisee. Read on to learn more.
How to Choose the Best Franchise Opportunities?
Knowing how to choose the best franchise opportunity is fundamental when starting your franchising journey. Here are the following steps that will help you choose the best business franchise opportunities in USA:
1. Set your priorities.
The first thing you need to do upon browsing the available business franchise opportunities is to set your priorities. You need to list down your top priorities as a franchise buyer. Don’t fret about it. The list doesn’t have to be final. It should only give you an idea of what businesses to prioritize and what franchising opportunities are worth the investment.
When listing down the franchising business franchise in your priority list, consider the following:
- Do you want to work with customers? Or do you prefer to manage and oversee the entirety of the operations? Do you want to be in a business to business franchise? If so, a business consulting franchise might be what you are looking for.
- Do you want to work with a specialized target population? (e.g., people who have disabilities, injured, or who have special needs). This can be a rewarding experience for you. In that case, you should consider best franchise Special Strong
- Do you want to start your journey with a large, highly-recognized brand? If that’s the case, you will most likely list down fast-food chains such as Subway, McDonald’s, or Wendy’s.
- Do you want to invest in a small yet faster-growing business franchise opportunities? There are organic food franchises and natural beauty products to choose from.
- How much is your total budget for franchising? Which of the franchises from your list can you afford?
- How much training and support would you like to have from your franchisor? If this is your first time running a business, a 24/7 support system from the original owners is suitable.
2. Define your exit strategy.
As early as now, you need to know what your exit strategy is. Amid all the thrill and excitement, new franchise owners often forget about their exit strategies. Sit down and determine how long you intend to be on the runway. Is operating a business something you would like to do for five years only to finance another lifetime dream? Or is this something you would like to pass down to your heir? Defining your exit strategy is crucial because there are different selling restrictions from franchisors. Some business models are not even scalable, which could affect your plans in the long run.
3. Determine your involvement.
You need to know how involved you want to be in running a franchise business. Some franchising opportunities in USA, such as Special Strong, allow their franchisees to live their dream lifestyle. The schedule is flexible, and you only work when you want to. Some prefer working only on weekdays and take the day off on the weekends. Running a franchise business while maintaining a full-time job isn’t possible. Most franchisors also do not allow this set-up. Franchising is not part-time work that you can attend only when you need to. For your business to flourish, you need to be as involved as you can.
4. Put your skills to good use.
What are you good at? It’s about time to examine and put your skills to good use with a franchise business. If you have previous professional experience, examine the skills you have developed. Do you feel comfortable interacting with your customers? Are you good at managing people? Or do you prefer working out in the field instead of undermining everything? It’s crucial to examine your skills first before choosing the best franchise opportunities in USA.
5. Think about your status.
This factor is case-sensitive. Often, people are ashamed to say that they are in a business that cleans toilets and commercial buildings’ tiles. These businesses are often regarded as disgusting or different. Hence, not many people venture into a business like that, not knowing that it is a huge moneymaker due to the little competition they have to deal with.
Is it Profitable to Open a Franchise?
Franchise business models are designed to generate big returns. Since the startup costs of franchising are higher than starting your own business, it’s normal to know if it is profitable or not. After all, you are risking your hard-earned money to dive into the business franchise opportunities you are interested in.
Sometimes, the industry can be unforgiving. With little margins, there is no room for any mistakes. However, a well-operated gym franchise can be a cash cow with multiple streams of revenue. If you are passionate about running a gym franchise, rest assured that your hard work will pay off in the long run.
How do start-up costs and royalty fees affect your profits?
Alright, the first thing you need to know about business franchise opportunities is that start-up costs and royalty fees can have a large bite at your take-home pay. For instance, when opening a gym, you need to pay the franchise fee to obtain the rights of operating the business. After 10 years, or depending on what is stated in your contract, you need to pay the renewal fee again to continue operating.
Besides that, there is an ongoing royalty fee that you need to pay as well. Franchisees are required to pay a percentage of their sales to your franchisor. Whether you are successful or not in running the business, you still have to pay the agreed royalty fee. This is why most beginners opt for franchises that offer a lower royalty percentage. It gives you a high earning potential and allows you to experience faster financial growth.
Is it wise to buy a franchise business?
Based on the recent profitability figures, the outcomes are diverse. It varies from franchise to franchise. The Franchise Business Review reveals that the average pre-tax income of a franchise business depends on the industry it belongs to. Since the fitness industry is one of the rapidly growing industries right now, rest assured that you’ll be able to produce a steady stream of profit in the long run.
Generating a profit isn’t about how expensive the business franchise opportunities are. In fact, the same report reveals that franchises that cost around $1 million are struggling to generate a decent profit, or we’re sending money down the drain.
A beginner franchiser often imagines himself on a positive side of this industry, generating a steady stream of income. However, in reality, you’ll most likely place yourself at the average or lower level. This rings true for first-time franchise investors. You can make up to $106,500 a year if you can successfully run your business and live frugally.
But if you want to be rich and live the lifestyle of your dreams, you need to find a way to multiply your income. Some investors tend to open other franchises after the success of the initial business while others invest their income in conventional equities.
The bottom line is that franchise can make your dreams come true, but it’s not a guarantee. There are factors to consider to secure success such as the industry, entrepreneurial experience, and your existing net worth can help. Above all, you must be passionate about running a franchise business to hit the highest income-generating potential and live your dream lifestyle.
Are Fitness Franchises Profitable?
We have mentioned earlier that the key to franchising success is choosing the right industry. Fitness franchises are now leading the list of the most profitable franchises in the USA. Why? Because more and more Americans are becoming health conscious, resulting in an increase of gym-goers. Becoming healthy is no longer a trend, but a lifestyle.
Health and fitness industry is booming
Do you know that in every five Americans, one of them is hitting the gym or at least paying for a membership to stay fit? The current population is committed to get and stay in shape, allowing the industry to rapidly grow with no signs of downfall any time soon.
The number of Americans who are hitting the gym are either trying to lose weight, build some muscles, improve flexibility, stay in shape, and be active. Some are even paid to stay in shape, so it’s crucial for them to have a reliable fitness center that they can hit anytime they want to break a sweat.
Considering this data, the fitness industry is one of the best industries to invest your money with if you want to franchise a business. With a steady stream of consumers eager for the services you can offer, you never have to worry about profitability.
So, are fitness franchises profitable?
There are several reasons why fitness franchises will never run out of revenue:
Nowadays, people are more conscious about their body shape and becoming healthier. To be called fit is an important complement. Hence, more and more people are willing to pay for gym memberships, classes for yoga, pilates, and Zumba. Fitness franchises give consumers a sense of security and consistency. Even if they don’t show up for a day, rest assured that you’re still going to make some money. Some consumers are also looking for specialized classes and adaptive fitness training. Fitness franchises have a wide range of services to offer that are suitable for varying consumers.
2. Existing brand recognition
You don’t need to start from scratch to get some customers. Thanks to the existing brand recognition of the fitness franchise, rest assured that you’ll have a stable base of consumers waiting for you as soon as you launch the business. Fitness franchises with well-established brands are an advantage. It allows you to generate a steady stream of income, even if you are still a beginner.
3. Higher success rates
A fitness franchise is already an established business. All franchises are working under the same brand, the same training, marketing, and support. Franchise businesses won’t last long if it does not have a turnkey business model. There is no trial and error here. You don’t risk losing your hard-earned money because fitness franchises have a higher success rate. While it’s rewarding to see your vision come into life by establishing your own brand, in franchising, everything is settled. The entire team is just waiting for you to take the gear and keep the business running.
How to Approach for the Best Franchise Opportunities?
Now that you know how to choose the best franchise opportunities in USA let’s go further. Approaching a potential franchise opportunity should be done deliberately; you risk losing what could’ve been your chance for a better life. Here are the following factors to keep in mind:
Review the franchise requirements.
First things first, if you want to guarantee your franchise proposal’s success, you need to review the requirements. You don’t want to be exerting so much time and effort only to end up not being accepted because you are not eligible for the franchising opportunity. Franchise owners typically publish requirements online to guide you into the application. If there is a prospectus provided, you might want to study it first to ensure that your proposal aligns with their mission. Create a checklist that entails all the information you need to include in your proposal, so you don’t forget anything.
Prepare your proposal.
Start with your proposal’s structure. There are essential elements that you shouldn’t miss when it comes to writing a proposal to the franchise owner, including the following:
- Executive overview
- Marketing experience
- Managing experience
- Management team profile
- Management team skills
- Market analysis
- Financial overview
- Licenses and certifications
These are the elements that should always be present in your proposal. It covers everything your franchisor needs to know to evaluate if you are qualified to become a franchisee. Some franchise owners prefer applicants who are licensed or certified concerning the industry to establish their expertise.
Provide relevant experience.
In order to increase your chances of getting accepted, the franchise owner needs to know that you have the relevant experience for the business. For instance, if you are applying for a franchising opportunity in Special Strong, it would be an advantage if you have experience training with disabled individuals before. If any achievements will highlight your expertise, it is worth including in your franchise proposal.
Create a financial forecast.
A financial forecast is an integral key to secure the business franchise opportunities you’ve been working hard for. This part will discuss in detail your current financial position, net worth, and other liquid assets. You must be eligible to meet the business’s financial needs and be able to finance the business operations. If there are gaps that you need to fill with funding, start applying to finance agencies as early as possible. Some low-cost franchising such as Special Strong allows you to finance the initial investment fee and franchise fee through third-party organizations such as SBA.
Introduce your management team.
As early as now, you have to look for your potential management team when applying for the business franchise opportunities in USA. Submit a team management profile that describes the key members and explain in brief why your team is invincible and fit for the business. For instance, if you are applying for Special Strong, having a member who is a certified adaptive fitness instructor before or a manager with excellent human resources experience can further strengthen your franchise proposal.
Describe the market potential in your area.
By now, you have probably chosen a place in mind to establish your business. You need to persuade your franchisor that there is excellent marketing potential in your area. That being said, do your research about the area. You must show evidence or data that reveals the high demand for the business in your area. Also, show a list of indirect competitors and provide a demographic profile relevant to the business’s target market. Explain in this part how the brand can thrive and succeed in the local operation.
Schedule a consultation.
If your franchise proposal is completed and ready, it’s time to schedule a consultation with your franchisor. Visit their official website and simply fill out the form. One of their representatives will get in touch with you soon. When you have the opportunity to talk with your franchisor, ask as many questions as you can to fill gaps, and better understand the business. Here are the following questions that you should ask when talking to your franchisor:
How much can I make in this franchise business?
Understandably, this is one of the most common questions that potential franchisees ask when speaking to the franchisor. Franchisors must always disclose their franchisees’ percentage and give you a clear view of how much money you can expect to make with this kind of business. Once you get the numbers you need, you can proceed to create a business plan. Do keep in mind that there is no definitive answer to this question, only a clear estimation of your expected gross sales once you start the business.
Is it possible to achieve my goals with your current franchise business model?
Let your franchisor know about your goals and ask them if it’s possible to achieve their current business model. Does their vision align with yours? You need to set some goals when franchising a business, so you know exactly where your hard-earned money is going. Besides that, you need to know how much support you’re going to get from them when you start operating the business. For instance, does the franchisor require you to be a hands-on operator, or do you hire another manager to run the business? Most franchisors prefer first-time buyers to be as involved in running a franchise business to ensure success.
Do we have a mutual ground in values and culture?
Every business, no matter how small, has its own values and culture that they promote. Diversity in a franchising organization is great as it promotes creativity. However, you still need to be on common ground with your franchisor regarding values and culture. If you find yourself struggling to obey your franchisor’s values, it could be difficult to run the business, leading to discontent and loss of interest.
How do I get help with franchise financing?
As much as possible, try to look for and work with a franchisor who exerts effort into making their business as accessible and affordable. Some business franchising opportunities, such as Special Strong, can recommend lenders. The brand is on the SBA registry, allowing you to finance money in starting up your business.
How do I get franchise discounts or financial incentives?
Franchisors often offer discounts and financial incentives to their female, veterans, and minority applicants. They also reduce royalties to help them grow their finances. Look for franchisors who offer limited-time deals that allow you to operate the business with no franchise fee for up to six months. Some are even offering money-back guarantees to give you peace of mind.
What is the Best New Franchise Opportunity Currently Available?
Special Strong is one of the best franchising opportunities in the USA that anyone can start without draining their banks. If you are passionate about fitness and working with disabled people, this is the perfect brand for you. They allow you to start your business without a brick-and-mortar gym, helping you to save money in the long run. Special Strong is a fulfilling business that can help you generate a stable profit.
Follow our tips above in approaching a franchising opportunity you are interested in and writing a franchise proposal. Anyone should have a chance to start their own business with proper guidance and foundational knowledge. Invest today and secure your future!