For recently retired individuals seeking to stay active and engaged in business, franchising may be the answer. With the help of the International Franchise Professionals Group (IFPG), the process of identifying and investing in the right franchise can be made easier. This article looks at the most frequently asked questions when it comes to selecting the most profitable franchise opportunities in 2023.
What Kinds of Franchises are Profitable Right Now?
Recent statistics have revealed that home services, food, and fitness/wellness are some of the most profitable sectors within franchising. Home service franchises, such as plumbing and HVAC businesses, are well positioned to increase their success due to many homeowners in need of repair services. Similarly, food franchises are benefitting from the continued emphasis on health and wellness as more people are looking to enjoy fresh, prepared meals. Finally, fitness and wellness industry franchises have seen a big uptick in profits due to more people looking to maintain healthy lifestyles.
What Should I Look for When Selecting a Franchise?
When selecting a franchise, keep an eye out for four important criteria:
1. Location – Make sure that the franchise opportunity is located in a growth market that is demographically consistent with the product or service being provided.
2. Product or Service – You should be able to easily identify a need for the product or service being offered by the franchise.
3. Financial Investment – Franchises can require capital investments up front. Consider the initial investment required and the likely return on investment (ROI).
4. Franchise Support – Be sure to also investigate the level of training and support offered by the franchisor.
How Long Does It Take to Establish a Franchise?
The length of time to establish a franchise varies by company and location. Generally, it can take anywhere from a few weeks to six months to establish the franchise. However, the timeline can be shortened with comprehensive research, due diligence, and an experienced franchise attorney.
Are There Tax Advantages to Purchasing a Franchise?
Yes, there are several tax advantages to owning a franchise. Depending on the structure of the franchise agreement, franchisors may qualify for deductions from business-related expenses such as advertising, equipment, and travel. Additionally, franchisees may be able to take advantage of the new 20 percent pass-through deduction from the government.
What’s the Best Way to Promote a Franchise?
General promotion is essential to the success of any franchise. Word-of-mouth or referral (e.g. friends or family members) is one of the most effective ways to promote a franchise. Other methods include leveraging existing social media networks and using digital advertising. Consider offering incentives such as discounts and special offers to encourage existing customers to spread the word.
The process of selecting a profitable franchise opportunity in 2023 should begin with examination of the location, product or service, financial investment, and franchisee support. Additionally, it’s important to keep in mind the tax advantages associated with the franchise agreement and the different ways of promoting the brand. While each situation is unique, by following these guidelines and taking the advice of the International Franchise Professionals Group (IFPG), you will be better equipped to land a profitable franchise in the coming year.