Answer: Although the majority
of franchise companies active in the market
today don't disclose their profit margins or provide an
estimate of ROI (return on investment) it is fairly well
known that some franchise business models offer
products or services that traditionally offer either low
start up cost, high margins, or low overhead (or all) and
can provide (or historically have) a high a ROI. Below are a few common
examples of franchises that have the right ingredients
to provide a high ROI.
Coffee Houses/Shops - Its not much of a
secret in the food and beverage industry that
coffee drinks in general can offer very high margins
to business owners.
Home Based Franchises - Franchises that offer a
home based option have lower start up costs and
lower overhead expenses and generally can provide a
quick ROI.
Dry Cleaners - The retail dry cleaning industry has a
well known reputation for offering services that have
high margins.
Pizza Restaurants - The ingredients to make a
the average pizza pie are relatively inexpensive and
can ultimately provide a high ROI to
pizza franchise owners.
Internet
Businesses: In general because most
Internet
businesses have lower over head expenses than most
traditional "Brick and Mortar" businesses the products
and services they offer tend to offer high margins and
a fast ROI.
Financial Services - Franchise businesses that
offer financial services like tax franchises and
business brokerage franchises traditionally have
high margins and very low overheard expenses and can
generally offer a high ROI.
Health Care - Franchises that offer health care
services like
senior home care and
medical lab testing services are also known to
offer a good return on investment.
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