Advertise | Podcast | Toolbox | Courses

Franchise Fever

Building a brand is hard. So why not access a brand with high recognition and a built-in customer base to start your business on the second floor? Franchises are a great way for a first-time business owner to learn the ins and outs of owning a small business and how to manage all aspects like payroll, P&L reports, and facility management.

Although some franchises have high startup costs, companies like Jersey Mike’s have made the franchise model extremely attractive, but what franchise will send you on multiple vacations a year and pay that pesky mortgage for you?

Franchise: One, Two, Fee

The best franchises will have low initial starting costs, low royalty requirements, and high margins. The brands that usually come to mind when considering a franchise are also, ironically, ones that will cost the most in fees and royalties.

You would think that someone like myself, named Lou from New Jersey, would immediately want to jump into a Jersey Mike’s franchise, and I wouldn’t blame you. But it probably won't be the hero that will get you out of the grinder of a traditional 9-to-5 and into prolonged financial security with your own walk-in-ready business.

Let’s look at the numbers.

Estimated Startup Costs of a Franchise

The total startup costs can range from $50,000 to several million dollars, depending on the brand and industry. For example:

Some of the more notable costs include:

Ask for a Franchise Disclosure Document (FDD) to outline the funds needed for the initial purchase and the working capital afterward.

Franchises are the TV dinners of business. Cooking your food requires a lot of effort and time to make sure you don’t blow up your kitchen. Franchises, like TV dinners, carry a higher cost than making that food yourself, but they offer the convenience of coming home and having a hot meal that resembles and tastes like what the box promises.

Benefits include marketing assistance and training on properly managing your operation (your books, team, etc.).

Show Me The Money

Learn how to make AI work for you

AI won’t take your job, but a person using AI might. That’s why 800,000+ professionals read The Rundown AI – the free newsletter that keeps you updated on the latest AI news and teaches you how to use it in just 5 minutes a day.

Sign up to start learning.

Fran-choices

Franchises are available in many industries, from food to fitness and everything in between. There is a franchise for almost any industry, but some offer lower initial costs and better returns than others.

In our research, we found an industry that offers promising returns with a very reasonable chance of success. Hint: It’s not a McFranchise.

And the Winner Is…

SENIOR CARE

This might not surprise, but greedy clowns and kings slinging burgers are not where the profits lie.

Senior care is one of the industries with the highest returns and a fast-growing market. Most franchises you’d typically think of (like fast food) don’t even come close.

OK, Boomer

This past year was a record year for retirees. Soon, however, those retirees will stop playing pickleball and singing karaoke in their 55-and-older communities, and they will need help to cover their basic needs.

These people will need senior care services. Lucky for you, senior care franchises have some of the lowest startup costs and the highest profit margins.

You might be asking yourself now:

I see where you are coming from. Someone trying to help their sick grandmother is not thinking about the brand at that moment. 

A franchise offers services and training to help you navigate the industry and establish yourself more quickly in a field you may not have experience in or passion for.

The franchise model can help you get your piece of an industry expected to be worth $651 billion by 2029.

Let’s Have a Senior Moment

Starting with a franchise can help you reach a growing market for your services without learning and building from scratch.

One brand that kept popping up is ComForCare. This brand offers to assist seniors with daily activities (non-medical care), which is a very rewarding service to provide without getting involved in the messiness of medical care.

Devoting yourself to the world of senior care can be challenging. It’s not sexy by any standard and presents unique challenges, but the market will continue to grow until it peaks in the next ~ five years and stays strong for 2+ decades.

To understand whether the business is a good fit, research the various offerings in senior care. First, pick the business that matches your skillset, then focus on return on investment. Nothing is worse than a bad fit.

You can also check out other brands, such as CarePatrol, Amada Senior Care, and Granny Panties (OK, I made that last one up). 

Just Keep Swimming

Another popular service is indoor swimming schools. These indoor facilities allow year-round pool access and classes to help early swimmers learn. Goldfish Swim School is a leader in the industry.

Although startup and construction costs can be expensive, membership retention and recurring business can lead to locations with upwards of $2 million in annual revenue and profit margins of 20% to 30%.

Best Overall Franchises

These are the best opportunities across all industries:

Find your franchise

We understand that our top picks might not be yours. If you want to run a franchise, explore all of the available options in the link below to find the right business. But remember, the only number that truly matters is profit.

Choose one that aligns with your interests and skill set. If you are excited about the business, you can help your staff and customers thrive.

Although almost everything is done for you, it is up to you to take the business across the finish line and make it successful. Remember, humble beginnings.

There’s a reason 400,000 professionals read this daily.

Join The AI Report, trusted by 400,000+ professionals at Google, Microsoft, and OpenAI. Get daily insights, tools, and strategies to master practical AI skills that drive results.

Sign up now for free and work smarter, not harder.

”The two most important requirements for major success are: first, being in the right place at the right time, and second, doing something about it.”

— Ray Croc

Our Favorite Money Tools

🥧 M1 Finance - Don’t pay crazy fees to have someone invest your money; replicate their approach for free with M1 Pies.

🦋 Monarch - Automatically track your spending, create a budget, and track your net worth.

🏠 Fundrise - Invest in Rust Belt and Mid-Western real estate.

💸 Swagbucks - Get cash back from over 1,500 retailers, including Amazon, Target, and Starbucks.

🏦 Mercury - The best small business checking account, full stop. We use it for all of our businesses, including my personal checking. Create and manage virtual credit cards for every expense and never get overcharged again.

See the complete list in our Toolbox.

Money Talks

If cost was no barrier, what is one franchise you would own strictly because you love the brand or think you can help it grow?

Let us know your answers so we can feature them in a future newsletter!

May the cash flow always be in your favor,

Andrew and Lou - the Funny Money team