As the country rebounds from the recession caused by COVID-19, people are scrambling to take advantage of investing opportunities. Investing in a franchise is a smart move as long as you know which areas offer the best options for long-term passive income.
Why Own A Franchise Business?
Most people want to work for themselves and give up the 9 to 5 lifestyle. As a franchise owner, you’ll be your own boss. You can work toward growing your own business, not someone else’s.
When you own a franchise, you get to do what you love and can receive guidance from the owners to help you gain knowledge and tips that will ensure the success of your business. In fact, franchises have been shown to have a greater chance of success than non-franchise small businesses. For this reason, franchises are great for those new to business ownership. Getting a business up and running can be a difficult process, but with a franchise, that part of the business model is already complete.
With a franchise, you don’t need to worry about many aspects associated with starting a new business, such as finding the best location, negotiating a lease, building relationships with vendors, finding qualified contractors, and budgeting. You simply need to follow the business model provided by your franchisor to operate your business.
The Best Franchises to Own in 2021
You could never go wrong in the franchising industry as long as you know all the right opportunities. Investing in food, home supplies, fitness franchise gyms, and men’s hair care are some of your best bets in the U.S. in 2021, especially since the economy is rebounding from a recession due to COVID-19.
Coffee shops like Starbucks and Dunkin’ Donuts are holding strong, even when the pandemic closed down their quaint, indoor sitting areas. Buying a franchise at the right coffee shop is almost guaranteeing a profit.
Coffee shops are like fast food, but with coffee and donuts. They are convenient, cheap, and usually open 24/7, so even people working the night shift can frequent them.
A Dunkin’ Donuts franchise offers about 8-12% net profits, which is great if you overlook the expensive costs of opening one.
Opening a store that focuses on delivering packages, such as the UPS Store, is one of the best franchise options in 2021. People are buying online and having products shipped to them more than ever because of COVID-19, so opening a delivery-related franchise makes sense.
Office Depot and OfficeMax offer FedEx services, but UPS has its own delivery store, which offers shipping, postal services, printing, and business services. Entrepreneur Magazine listed UPS as the #1 franchise to own for 19 consecutive years.
UPS uses modern technology and is located around the world. They deliver an estimated 13 million documents and packages daily. With online shopping reaching the numbers it has in the past year, investing in a UPS Store just makes sense.
Fitness & Health Company
After being sedentary for much of 2020, people are taking their lives and their health back. Fitness and health companies are seeing a surge in business and are a great choice for franchise ownership because of it.
NutritionHQ offers smart franchise options that focus on both fitness and health, offering customers the best of both worlds. With state-of-the-art equipment and a wide selection of supplements and health products, they attract a large array of individuals seeking to improve their health.
NHQ offers easy management, with most stores only requiring two to three employees, and they only need a small space – approximately 1000 square feet. Unlike many other franchises, NHQ has a lower startup investment cost. Plus, you’re almost guaranteed profits in a franchise that is currently a $30+ billion a year industry.
Since people have been quarantined in their homes, they began making home improvements, and hardware stores, such as Ace Hardware, have seen a boom in business. Ace Hardware offers different choices for franchising, such as shares in stock, merchandising, and services, as well as the ability to open a store within another business, like a grocery store. Plus, you have the option of expanding your franchise to include Ace Handyman Services, which offers handyman and in-home services.
Ace Hardware franchises have low startup costs, and the company offers loans to help you get started. They have a high margin of profit for the well-known brand, and the hardware market has enjoyed a steady 3% growth since 2014.
The hair care industry is worth about $75 billion with a steady growth of 8% annually. People always need their hair cut, and with a talented staff, this business hardly needs a managerial role.
While women’s hair care businesses are highly competitive, franchises that cater to men are much more rare. Sports Clips, for instance, has been around since the 1990s and offers a sports-themed environment for its patrons. At Sports Clips, costs are low and profits are high, since the atmosphere draws in men and boys alike.
As long as you know the right opportunities in franchising, you are ensured success. People are looking to take care of themselves and their homes, with companies like NHQ and Ace Hardware, while also pampering themselves with specialty coffee drinks from Dunkin’ Donuts. This makes these types of places great choices for starting a franchise and beginning on your road to success.