Wholesale Entrepreneur: Top Profitable Franchises for the Season
If you’re an aspiring entrepreneur who feels like an original brand is too much of a risk, franchising an existing brand is a great opportunity to become a business owner while alleviating a lot of the risk inherent in starting a new business. Since franchises already have the advantage of a proven business model, supplier network, and name recognition, you won’t have to work as hard to establish this business, and you’ll have access to support and resources that can ease your transition into ownership.
So, which franchises are the most profitable? Look at this breakdown of the top franchise earners from 2023 to find your niche.
1. Fast Food
From McDonald’s to Taco Bell, so many of your favorite restaurants are available for franchising. The top 15 options showcase the range of restaurants available, including smoothie joints, burger restaurants, Mexican food, and sandwich shops. Whether you have a particular passion for one type of food or you prefer to go by the numbers, fast food can be a winner with a loyal customer base and an efficient self-service model
2. Fashion
If you think restaurant franchising isn’t the right option for you, there are many more businesses that may align more closely with your interests — like opening up a store or boutique, selling retail fashion accessories and clothing made by a fashion wholesale business! These franchise solutions have varying investment requirements and franchise fees to help fit your budget. Some start with franchise fees as low as 25K with investment requirements of around 125K to get the store up and running.
3. Shipping
One of the lowest franchise fee requirements out of any option is opening a store for UPS. This company has been among the top five on Entrepreneur Magazine’s Franchise 500 List since 2020! In addition to a low franchise fee and startup costs, many shipping franchises also offer world-class training for you and your team. Another bonus from UPS specifically is that they’ve partnered with a small business lending institution to help with financing for qualified investors. You also get added perks if you’re opening up a shipping location in rural areas or a store-in-store setup.
4. Hardware
Many people don’t know that some hardware stores are actually franchises, like Ace Hardware! These stores typically offer investors several types of franchise opportunities, including opening a brand new store, converting an existing store into a brand-name store, or filling empty space in an existing store with a hardware section. Each level has different investment requirements, allowing you to customize your costs depending on your capacity. Some hardware stores also waive franchise fees for certain categories of entrepreneurs, like veterans.
How To Choose A Franchise
Starting a business is tough no matter what, even when you have the backup of an existing brand and its support network. However, figuring out which type of franchise could make you the most money and provide a high level of personal satisfaction can put you on the right path.
You should start by researching your area and determining what’s missing from your local commerce ecosystem. You don’t want to start an Anytime Fitness franchise if your town is already saturated with gyms! Make sure your franchise appeals to your local demographics, and that the brand has a proven support system. Compare the franchise fees and estimated investments for each option on your list, as well as potential annual revenue numbers.
Some important considerations when researching franchise options include:
- Getting the advice of an accountant or lawyer to crunch the numbers
- Reviewing item 19 of the franchise disclosure document (FDD) for each franchise
- Mitigating debt by balancing franchise fees and upfront investments
- Speak with other franchisees in the industry to gain an understanding of operations
A Few Final Thoughts
As you’re doing your research, it’s important to note that a franchise is about more than just the numbers. Make sure other franchisees are satisfied with the support they receive and have a positive outlook on their business. If one franchise is starting to look like an unsafe bet, trust your instincts and move on to a different opportunity.
