Franchise Opportunities

Guide to Hot Franchise Opportunities

Ready to buy a franchise opportunity? Here are the hottest franchise trends and concepts.
By Daniel Kehrer

Looking for a franchise business opportunity? How do you find the best franchise to buy, now? For help with how to buy a franchise, the best franchise to buy, and the hottest franchise opportunities, concepts and trends right now, you’ve found the right place.

Today’s franchise opportunities are making it easier than ever to make the dream of business ownership come true. Almost 900 new franchise opportunity concepts have launched in the last three years alone, and you can now select a franchise business opportunity in 75 different industries. Two trends you should know about:

1. The age of the “semi-absentee” franchise owner is here. Running a franchise as a side business is hot. With new tech to track store activity online in real time, absentee owners can have a franchise business that doesn’t tie them down.
2. More franchise opportunities are low-cost and low-overhead. You can buy a franchise and run it from home or with relatively few employees or inventory. With nearly 800,000 franchises to choose from, there’s something for everyone.

Action Steps

The best contacts and resources to help you get it done

FRANCHISE TREND: Enlist a free consultant to help you find the best franchise opportunity fit. Working with a franchise consultant is a little like working with a real estate agent to buy a house.

I recommend:  FranNet, for example, is the largest network of franchise consultants in the U.S., and their services are free to you. Their consultants help you learn about the many choices available and select and finance the right one for you. iFranchise Group is a consulting firm that can help you evaluate your readiness to buy a franchise and sort through franchise options and potential sources of financing.

HOT FRANCHISE CONCEPT: Coffee houses. Believe it or not, the specialty coffee field is still growing. Even in a world where Starbucks is king of coffee, other franchises are reaching for their share of the (coffee) pot.

I recommend:  If you think there’s no room left, think again. See the top coffee house franchise opportunities.

HOT FRANCHISE CONCEPT: Staffing and business services This is one of the fastest growing franchise categories in America. Franchises in this area help small businesses find and recruit talent, and outsource everything they need to grow and operate, from signage to IT services.

I recommend:  See the staffing franchise directory at Franchise Gator.

HOT FRANCHISE CONCEPT: Niche gyms Specialized fitness centers for kids, teens, seniors, women and even 24/7 gyms are big. These gyms do not target the general population.

I recommend:  Rather, they focus on one group, like people who prefer to exercise when most gyms are closed, and then build their facility and services around this demographic. Check the directory of health and fitness franchise opportunities.

HOT FRANCHISE CONCEPT: Non-medical healthcare As everyone knows, the U.S. population is aging. Fast. The percent of population over 65 will jump from under 13 percent today to almost 20 percent by 2030.

I recommend:  Many older people want to remain in their home as long as they can, and several franchise concepts help them do this. In-home personal care is in demand, and growing. You can browse hundreds of franchise opportunities online at places like Franchise.com, FranchiseSolutions.com and Bison.com. You’ll also find helpful information and a directory of franchises at the International Franchise Association (IFA).

HOT FRANCHISE CONCEPT: Education and tutoring This is another franchise concept growing exponentially as schools become more competitive. Whether its online tutoring, subject specific, or even for the youngest crop of pre-schoolers, parents are willing to plunk down big bucks to ensure their kids have an extra edge.

I recommend:  Some tutoring franchises are even being hired by established schools to provide tutoring services if their programs don’t meet performance standards. Franchise Advantage lists education and tutoring franchise business opportunities.

Check initial investment requirements by franchising sector Each industry and sub-sector has a widely different set of initial expenses that make up the investment requirements based on their business model.

I recommend:  An International Franchise Association (IFA) “Special Report” on initial investments required to purchase a franchise offers an excellent overview of franchise buy-in costs. Check a handy comparison chart of initial purchase fees by franchise category. IFA operates an ongoing series of franchise expos for people considering a franchise (check the site for dates and locations).

Tips & Tactics

Helpful advice for making the most of this Guide

• Cost estimates usually do not include real estate purchases because most franchises do not require you to own commercial property. Included in the estimates, however, are expenses for unit build-out and construction, as well as initial inventory costs.
• The franchisor may require that your personal net worth meet a minimum requirement and that you have funds available to tap for working capital other than your initial cash investment.
• You may also need to pay for legal services, business and health insurance, employee salaries and benefits, operating licenses, equipment, store fixtures, signs and other items.
• Your ongoing costs will likely include a fee or royalty to the franchisor based on a percent of your revenue – usually in the 3 to 7 percent range.
• You may also be required to pay into an advertising fund. Some of the money may be used to attract business locally for you, but some may also go to national advertising or to attract new franchise owners.