In good times and bad, franchises can offer a proven business model to people eager to run their own show. The trick is finding one that is right for you.
Here are seven franchises that we think are worth a look, based on our interviews with franchise experts and consultants. All have demonstrated solid growth despite the harsh business climate -- and none of them require exorbitant start-up fees.
We focused our search on franchises with growth of 70% or more since 2006 (or 10% or more since 2010 for new franchises). Then we narrowed that list to those with franchise fees of $50,000 or less. Finally, we sorted by franchises in industries that are doing well and are expecting continued growth, according to experts.
Synergy HomeCare
Product/service: In-home health care
Franchises in the U.S.: 152
Net worth requirement: $150,000
Royalty: 5% of gross revenue
Franchise fee: $39,500 for initial service area (subsequent fees drop as territories are added)
Although caring for seniors, a growing demographic, is its main focus, Synergy HomeCare provides home care for all ages. It offers franchisees ongoing training through webinars, teleconferences and annual meetings to help business owners stay on top of new technology and trends. Synergy franchisees have an average of 75 to 100 employees working for them within two years. Franchise growth has been impressive: About 950% since 2006.
Sponsored Content
(opens in new tab)
JumpBunch
Product/service: Fitness programs for children
Franchises in the U.S.: 45
Net worth requirement: $75,000
Royalty: 8% of gross revenue
Franchise fee: $33,000
Local school districts strapped for cash have slashed their extracurricular budgets and recreational programming. Franchises such as JumpBunch allow schools to outsource gym classes, a cost-effective alternative to maintaining their own physical education departments. The service is also in demand with day care programs and camps. JumpBunch franchises have grown 181% since 2006.
Sponsored Content
(opens in new tab)
FocalPoint Coaching
Product/service: Business development and consulting
Franchises in the U.S.: 75
Net worth requirement: $100,000
Royalty: $1,800/month
Franchise fee: $49,950
FocalPoint Coaching seeks franchisees, or "coaches," who have previous experience in marketing, human resources or finance.
Coaches work with entrepreneurs and small to medium-size firms on business development. The company offers up to 150 hours of training each year to its business owners, who can work from their homes. The company has business coaching programs for clients on iPads. Franchises have increased 20% since 2010.
Sponsored Content
(opens in new tab)
Signal 88 Security
Product/service: Virtual monitoring, emergency response and foot patrols, among others.
Franchises in the U.S.: 87
Net worth requirement: $50,000-$80,000
Royalty: 4% of gross revenue
Franchise fee: $35,000
Franchisees typically have a background in police or security work, or are military retirees. While Signal 88 Security is growing throughout the country, the company is primarily expanding in large cities. The number of franchises has increased 55% since 2010.
Sponsored Content
(opens in new tab)
Expedia CruiseShipCenters
Product/service: Cruise/vacation marketing and sales
Franchises in the U.S.: 32
Net worth requirement: $250,000 (for retail location only)
Royalty: 9% of profit
Franchise fee: $29,000 (retail center); $9,500 (sales center)
Many of the company's franchisees have said bon voyage to the workaday world, and have launched second careers in retirement that revolve around their passion for travel aboard cruise ships. Franchisees can run sales centers from their homes or start their business in a storefront retail location. The number of franchises has grown 85% since 2006.
Sponsored Content
(opens in new tab)
MaidPro
Product/service: Residential cleaning
Franchises in the U.S.: 143
Net worth requirement: $50,000
Royalty: 3.5%-6.5% of gross revenue
Franchise fee: $7,900-$21,500
MaidPro offers a special software program that it says helps franchisees better manage their clientele by cutting down on costs and time spent commuting to jobs. Most franchisees don't have prior cleaning experience, but almost all have a management background. The number of franchises has grown 126% since 2006.
Sponsored Content
(opens in new tab)
U.S. Lawns
Product/service: Commercial lawn care
Franchises in the U.S.: 256
Net worth requirement: $50,000-$100,000
Royalty: 1.5%-4% of gross revenue
Franchise fee: $29,000 ($15,000 if you convert an existing landscape business into a franchise)
During hard times, commercial lawn care services are more likely to keep their customers -- office parks, shopping centers and municipal centers -- than residential services. Businesses and governments regard lawn care as a business expense, while homeowners tightening their belts regard it as more discretionary. U.S. Lawns doesn't require potential franchisees to have previous landscaping experience. Franchise growth has been impressive: 77% since 2006.
Sponsored Content
(opens in new tab)
More from Kiplinger
QUIZ: Test Your Start-up Know-How
SLIDE SHOW: 8 Low-Cost Franchises for Hard Times
Sponsored Content
(opens in new tab)
-
-
Don’t Poke the Bear! How to Respond to Angry Customers
Arguing, doubling down and refusing to negotiate could make matters worse, so it’s best to aim for a win-win solution. And if that doesn’t work…
-
Stock Market Today: Stocks Stabilize After Jobs Report Jolt
The November jobs report blew past expectations, sending the markets sharply lower at the open.
-
40 Ways to Earn Extra Cash in 2022
business We flag a wide variety of cool side hustles to earn bonus bucks for expenses both expected and unexpected as we begin to emerge from the pandemic.
-
Self-Employed? Watch Out for These IRS Audit Red Flags
taxes If you're in business for yourself, minimize the odds of the IRS giving your tax return a second look by avoiding these audit triggers.
-
Most-Overlooked Tax Deductions and Credits for the Self-Employed
Tax Breaks If you've recently gone into business for yourself, don't miss these tax breaks for the self-employed.
-
Business Cost Outlooks for 2022: Eight Key Sectors
Economic Forecasts What’s in store for all sorts of business costs in 2022?
-
W-4 Form: Extra Withholding, Exemptions, and Other Things Workers Need to Know
W-4 form Starting a new job? Want to boost your tax refund? Don't want to make estimated tax payments? Then you ought to get familiar with IRS Form W-4.
-
PPP Loan Basics for Small Business Owners
Coronavirus and Your Money Although uncertainty and confusion have surrounded the Paycheck Protection Program since its launch, that shouldn't stop small business owners from participating in the loan program, which was just extended to May 31.
-
"Above-the-Line" Deductions for Your 2021 Tax Return
Tax Breaks If, like most people, you claim the standard deduction instead of itemized deductions on your return, there are still many other tax deductions available that could save you a lot of money.
-
The Biden Tax Plan: How the Build Back Better Act Could Affect Your Tax Bill
Politics Depending on your income, the Build Back Better Act recently passed by the House could boost or cut your future tax bills.
