When thinking about franchising, restaurants often come to mind first, but are they best? See how a restaurant franchise compares to other types of businesses.
SIZING UP YOUR OPTIONS
Every industry has its pros and cons. Other than restaurants, there are several lucrative and promising business categories that present promising opportunities. But regardless of whether you choose to open a restaurant franchise or a day spa, there are a few factors you should bear in mind as you consider your options:
- Costs and fees:What will you have to pay for your initial investment? What are your ongoing royalty and franchise fees? How is the money distributed?
- Size and growth:What is the franchisor’s history of openings and closures? How many operating units exist and how many are planned?
- Support:What type of support do franchisees receive in key areas including training, marketing, operations, product procurement and distribution, financing, real estate, and construction?
- Brand strength:How does the brand hold up in the marketplace when you examine its social media presence, system size, years of operation, and years franchising?
- Financial strength and stability:Do the numbers shared in the Franchise Disclosure Document (FDD) demonstrate a fiscally sound organization?
- Company values: Do the brand’s mission and values align with your own? Is that culture something you would want to be a part of?
If you apply each of these considerations to every franchise, you will get a better sense of what investment makes the best sense for you, regardless of the industry.
BEAUTY & WELLNESS
The beauty and wellness industry ranks high among franchise categories by offering a wide range of services and price points. These franchises include everything from spa services to skin care, nail salons, barbershops, personal grooming services, and more. These types of service businesses make great franchises because they generally require the ongoing trust of their clientele. Opening a beauty or wellness business with an established franchise provides guests with the brand recognition they seek and allows you to earn ongoing trust once they make repeat visits to your location.
One of the downsides to owning a beauty or wellness franchise is that if you do not sell products that are readily available online, your livelihood relies solely on in-person business. As we’ve learned during the COVID-19 pandemic, that makes the business vulnerable in certain economic conditions. The salon and spa industry suffered greatly due to shut-down restrictions. Unlike restaurant franchises, which were able to employ the use of drive-thru, curbside pickup, and delivery services, salons and spas were unable to maintain operations.
In addition, depending on the services you provide, you may have to employ highly (sometimes medically) trained professionals, which will certainly increase your labor expenses.
ENTERTAINMENT & RECREATION
Consumers with disposable income keep this category of franchising very viable. There are a range of emerging opportunities in this industry, particularly as the world is opening back up and people are leaving their homes again to seek out some fun. Everything from escape rooms to arcade bars to dine-in movie theaters have gained in popularity in recent years. New and innovative recreation options, along with experiences facilitated by technological advancements such as virtual reality, attract consumers by offering unique ways for them to spend their leisure time and money.
Many of these types of franchises require a hefty buy-in, particularly in cases where the facilities require massive square footage and expensive, high-tech equipment, not to mention a lot of liability insurance, in order to operate effectively. Furthermore, while consumers may be drawn to novel entertainment concepts, some of these businesses that open strong may have a difficult time finding a lasting business once the next new thing comes along.
With the entire population of 73 million U.S. baby boomers projected to reach retirement age within the next decade, the senior market is a significant draw to a variety of business types. With everything from household management to in-home health services, the senior care industry presents many opportunities for franchise ownership. The market is sustainable and growing, but it isn’t right for everybody.
Even more than the beauty and wellness industry, most senior service franchises require staff with specialized medical training and round-the-clock availability when dealing with often infirm or disabled clientele. While it can be a highly rewarding business, owners must be prepared to become much more personally invested than they might in other industries.
With people’s homes becoming the true center for every aspect of their lives since the onset of the COVID-19 pandemic, the home improvement industry experienced a major increase in demand and is projected to sustain momentum. With many home improvement franchises categorized as essential businesses, entrepreneurs are seizing opportunities in this thriving sector. Home improvement franchise owners can achieve long-lasting success with the backing and support of the right business model.
Depending on the type of home services provided, businesses located in certain areas may face the downside of dealing with seasonal work and licensing requirements. And because of the nature of the work carrying a slightly higher personal and property risk factor than other industries, liability insurance, properly maintained equipment, and highly skilled and physically capable employees are all essential to running a business. Furthermore, even with an established brand, there is no guarantee for consistent or return business. Restoration and construction franchises rely heavily on referrals from previous guests to pick up new jobs.
Above and beyond every other franchise type listed, restaurants prevail because everyone has to eat! The average American eats outside of their home an average of four times per week, making restaurant franchise ownership a consistent, sustainable business. Even during the pandemic, when other industries suffered or screeched to a halt entirely, franchise restaurants had the means and ability to sustain business through use of digital engagement, third-party delivery apps, and curbside pickup to stay connected to guests and serve their food.
Restaurants often serve as a community hub, a place where friends and families gather and share meaningful experiences over delicious meals. And while the industry is broad and varied, established brands with a loyal consumer base can present the perfect business opportunity for enthusiastic entrepreneurs eager to get into business.
The downside to foodservice is that while you can easily hire unskilled labor, this is a franchise category that almost always requires restaurant industry experience in order to be successful. There may be exceptions to that rule, but not often.
WAYBACK BURGERS: FRANCHISE WITH THE BEST
Wayback Burgers meets and exceeds other fast-casual burger franchises in almost every way. With an accessible cost of entry, a model that is ready to scale quickly, and plenty of prime territory availability, Wayback Burgers gives entrepreneurs the opportunity to open one of the world’s fastest-growing restaurant franchises.
Wayback franchisees benefit from comprehensive training, national and local marketing campaigns, ongoing operational support, and the backing of an established and much-loved brand. As for our values, Wayback Burgers takes pride in our active involvement in the communities we serve, and our success allows us the opportunity to give back through various national partnerships.
Wayback prioritizes the success of our franchisees while never sacrificing flavor, quality, or service.