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 demonstrated) a high ROI. Below are a few common examples of franchises or small business categories that have the right ingredients.
Coffee Franchises – 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.
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 – Franchises that offer health care services like senior home care and urgent care services are also known to offer a good return on investment.