Industries That Franchises Launch Best In

Franchising is a popular approach for running a business. It is usually associated with big fast-food chains, beauty brands and other established businesses. Here, we’ll discuss everything you need to know about a franchise and which are the most popular industries to invest in so that you can decide if it’s a good investment for you.

What is a Franchise?

A franchise gives you the ability to use an already established business with a licenced trademark and branding that allows franchisees to sell a product or service under their business name. To start a franchise, the franchisee usually pays an initial start-up fee and annual licencing fees.

Franchises are a popular way for entrepreneurs to start a business, especially when entering into a highly competitive industry. 

How Do Franchises Work?

The franchisor is the original business which sells the right to use its name and idea. A franchisee is someone who buys the rights to sell goods or services under an existing business model and trademark. Each franchise branch effectively looks the same as each other with the same name, company logo, branding and décor whilst also offering identical products or services. 

What Industries do Franchises Work Best In?

The best franchises to invest in are the ones that are due to succeed because of their market position, financial structure or value proposition. Here are just a few of the industries worth investing in: 

Home Improvements

Some of the best franchise industries today are those that provide a service to your home. These franchises all have one huge advantage: people will always need new floors, new windows and drain repairs. Therefore, if you’re looking for a franchise to invest in, choosing a drainage franchise, window replacement franchise or any other home improvement business, you know you’ll likely survive in this economy.


Technology-based franchises are one to invest in this year as overhead costs are low, and you can get up and running quickly. It’s also super easy to grow a customer base! Technology franchises make it easy to work from home and you can make a lot of money quickly by being part of something that already exists on a huge scale. There is no better time to invest in start-up technology franchises.

Food Franchises

Probably the most popular and successful franchises on the scene are food franchises – particularly fast food. However, as more and more people become health-conscious and look for healthier ways to lead their life, new cuisines and international restaurants are growing in popularity as people seek healthier, tasty food from different places. Whether you’re investing in a fast-food restaurant or a sushi place, a food franchise is likely to grow.


People are having a hard time keeping up with their responsibilities – especially as a lot of people are still working from home. The last thing you want to do after spending all day working in your house is spending time scrubbing floors and dusting every inch of furniture. That’s why cleaning franchises are growing so much in popularity. Cleaning franchises provide help for homeowners who want a little extra help so that they can spend their free time on things that matter like family, and friends or simply relaxing in their clean home.


Merchandise franchises tend to be candle shops, pet shops, florists and more. There is little financial risk to starting a merchandising franchise, but you will need to work hard to convince your customers that your store is unique. 

Benefits of a Franchise

Franchises are a great way for entrepreneurs to take their first step into the business world. They have a host of benefits which include: 

  • You have a reduced risk of failure. The business is a proven idea, so you can check how successful other franchises are before you commit.
  • The products or services will already have an established market share.
  • You can benefit from the name and branding of the franchise that may already be a well-known business.
  • You don’t need any prior experience as you should receive training from the franchisor.
  • You will usually have exclusive rights to your territory.
  • Banks are more likely to lend money to buy a franchise with a good reputation.
  • You will usually receive support from other franchises in the network as well as the franchisor. 
  • You already have relationships with suppliers.

Disadvantages of a Franchise

Although there are many advantages when it comes to owning a franchise, of course, there are some disadvantages that you must consider. These include: 

  • Costs may be higher than you expect. They usually include the initial costs of buying the franchise plus continuing management service fees and you may have to buy products from the franchisor. 
  • The franchisor could go out of business.
  • Other franchises may give the company a bad reputation.
  • All profits are usually shared with the franchisor.
  • You may be restricted when it comes to changes to the business and how it is run.


All in all, a franchise is a great way to get your foot in the door as an entrepreneur as most of the hard work in getting the business known and profitable has already been done. Choosing a franchise is a big decision, and you should consider your background and skills to find one that works for you.