What Is the Most Profitable Franchise to Own?

Many people want to know what is the most profitable franchise to own. Often, this is asked by someone who doesn’t have much experience with business ownership. Like the old adage goes, it doesn’t matter how much you make. It only matters how much you keep.

You can invest in a typically profitable franchise like fast food that is built on a high volume of sales. Although the business may have a gross or top line of income in the millions, if the profit margin is only five or ten percent of sales, the owner’s profit is only five or ten cents of every dollar that comes in. Yes, this can be disheartening to many.

On the other hand, some businesses enjoy a high margin of 30 to 50 percent of income. So, even if there is a low volume, the business may actually make more money than a big, brand name franchise that probably costs ten times the amount of money to start.

It’s Your Choice
A food concept that costs $1,000,000 to open up and has annual sales of $1,000,000 at a 10% profit margin will make you $100,000.

A home-based service business model that costs $100,000 to start with annual sales of $400,000 at a 30% profit margin will make you $120,000.

In the case of the service business, you can actually own three territories by investing $300,000 and make a profit of $360,000 per year.

Ready to Find the Franchise That’s Right for You?
The most profitable business to own is usually not the one with the big store in a prime retail setting. Instead, it’s most likely to be a service business that flies under the radar and is something that people use day in and day out. Remember - it doesn’t have to be a “sexy” business to be profitable.

Don’t take changes when it comes to choosing a franchise. Work with a proven expert to find a profitable franchise that will create the income you want to generate and the life you want to live.

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