Looking for some of the best high margin franchises to consider investing in? While franchises provide a great opportunity for purchasers to open a business with immediate brand name recognition and existing infrastructure, not all franchises are created equal.
When thinking about investing, it is important to take into account the different possibilities in the market. For instance, companies with a franchise model tend to ensure some benefits, although it differs depending on its structure. Some tend to have high margins, with high revenues and few expenses, while others are less profitable on these terms. On top of that, depending on the franchise and industry, some entrepreneurs might recoup their investment over the short term, while for others, it might take longer.
Not all companies work with a franchise system. Some prefer the old company-owned store system. Nevertheless, this phenomenon has gained some popularity over the last decades, as it involves less investment: it is less risky and hazardous to acquire a franchise than to create a new business from scratch. Yet, of course, they are not always successful, as diverse factors are involved in their outcome.
For instance, the company’s intangible assets, the franchise’s location, its management, its activities, and it’s branding. All of these and more factor into their potential for success. Moreover, the fact that trends change faster each year, and consumer preferences fluctuate, different high margin franchises might benefit more short term, and then see their margins decrease over time.
Over the course of 2013, some franchises have been posting high earnings and revenues, and climbed up to the top of the ranking regarding companies’ growth and market positioning. We have made a list with the Top 10 Most Profitable Franchises in 2014, featuring franchises deemed as the best options for 2014 due to their powerful brands, profitable track records, and the growth of the niche in which they operate. As you might imagine, some of the top franchises are food companies and quick service restaurants, like Subway or Denny’s Corporation (NASDAQ:DENN). Yet, the top two franchises of 2014 are Hampton Hotels, of Hilton Worldwide Holdings Inc. (NYSE:HLT) and Anytime Fitness.
Well some of the upcoming opportunities regarding franchises are probably popular names in the market. According to Entrepreneur’s Franchises research, some franchises are good investment opportunities for the coming year, considering initial investment, capital requirements, and business financing. We have compiled a list featuring some of the best high margin franchises to invest in, beginning on the next page. Check them out.
