We get asked often what is the most profitable franchise. The answer to which franchise is the most profitable depends. What is the measuring stick? Is it profit dollars, is it profit margin, is it return on investment? Not every franchise is right for every business owner. McDonalds and 7-Eleven are two extremely profitable franchisees, but they are only a good match for certain individuals.
A better question to ask is, “What is the best profitable franchise for me?”
There is a franchise for almost everything. Franchises are an excellent option for those seeking business opportunities. If an entrepreneur is planning to start a new business a franchise can be the way to go. Franchises can help de-risk and allow owners to start fast. Before investing, making sure you will be joining a model where it is likely you will have a profitable franchise business is key.
Profitable Franchise Business Types
It does not matter how lucrative a profitable franchise is if it’s the wrong business for the individual. The determination of which franchise is most profitable is purely academic if that entity is the wrong one for a franchisee. Determining if you want to be part of a B2C business or a B2B franchise is an important step to find the right match. Considering if an individual wants to own a brick and mortar location or prefers to be virtual is also key. Once all of this is done, looking at specific business models can begin. Then selecting a profitable franchise business is the primary focus.
B2C Franchise
B2C stands for business to consumer. Every retail or restaurant is a B2C business. There are many different restaurant and retail franchises like McDonalds and 7-Eleven who we mentioned above. Subway, Dunkin, KFC, and Taco Bell are other restaurants that are some of the most profitable franchise businesses in the world. Circle K and the UPS Store are additional highly profitable retail franchises. There are many other B2C franchise businesses with fans like Planet Fitness, Orange theory, Pure Barre and more. B2C franchises also include providing home improvement services. Names in this area include Mosquito Joe, Koala Insulation, Miracle Method, and California Closets. Eldercare and tutoring services also fall in the B2C category, and many people are interested in these.
B2B Franchise
B2B stands for business to business. Any franchise in this space will provide goods and services to other businesses. Some good examples would include franchises that provide employment or recruiting services. IT Management is another B2B franchise, as are lending services and property management companies. Signage and printing services are B2B models that typically require a storefront. Co-working franchises have also started becoming popular, but they require a sizable investment. There are also consultancy and coaching B2B franchises plus financial services, legal services, insurance, and tax preparation franchises. These models are excellent fits for the right individuals.
Brick and Mortar or Virtual
Determining whether a new franchise wants a storefront, or a brick and mortar location is one more decision that must be made before selecting a profitable franchise business model. The majority of B2C businesses will require a storefront. B2B franchise models tend to have more virtual or flexible location options. Some B2C and B2B franchise models require vehicles and specific equipment to be purchased. At Valenta we are a B2B franchise model, and we do not require an office location. Some of our owners do have offices or workshare locations.
Why Franchise Versus Start a Business on Your Own?
Before deciding what is the best profitable franchise to own, entrepreneurs need to define what kind of business they want to be in. There are many different franchise models and usually people can find one or a few in an area of interest for them. Once they find models that are in areas they could see themselves running a business in, the evaluation of the best profitable franchise for the individual can commence. Franchises offer a lot of upside to business owners. They offer a proven model, a network of other franchisees to collaborate with, plus shared support and promotion from the Franchisor.
About Valenta
If you are looking for a profitable franchise business Valenta could be a great opportunity for you. If you are able to succeed in a B2B environment and speak with business owners and C-Level staff, please reach out if you are interested in our model. Valenta focuses on helping our clients have time for what they do best and their core mission. We do this through process consulting, the automation of tasks, and virtual staffing and outsourcing. Valenta is focused on SMB customers with 10-1,000 employees. We believe SMBs should benefit just as much from staffing, consulting and technology services as large enterprises, and the Fortune 1000 have. We are convinced that bringing on board passionate franchise partners is the best way to serve SMBs.
The Valenta franchise model is unique whereas a Franchisee you join as a Managing Partner. As the owner of a profitable franchise, you are able to provide a wide variety of services to your clients. Franchisee Managing Partners work on building their book of business, recurring revenue, and serving their clients. One of the advantages of being a franchisee is that you do not have to handle every detail or provide all the services clients require. Valenta delivers the operations, while Managing Partners focus on client relationships, customer satisfaction and new business acquisition.
To learn more about acquiring a franchise and Valenta Partnership please schedule a meeting with one of our Managing Directors here.
