In 2023, franchise business ideas are all the rage. The franchise industry has seen tremendous growth in the past decade, and with franchise opportunities springing up on every corner of the country, it’s easier than ever to start a franchise business.
Choosing the right venture to pursue is essential in ensuring it fits your lifestyle and needs, regardless of financial considerations. Interestingly, low-cost franchises can be a viable option, as confirmed by the International Franchise Association, which reveals that almost 4% of all small businesses in the U.S. are franchises.
In many cases, society tends to associate franchising with fast food. However, there exists a broad variety of businesses available for franchising. Are you curious about what types of franchise industries are in high demand out there?
From the food service industry to more unique opportunities like auto care or home care services, countless options exist for those wanting to purchase a franchise!
Beforehand, you must do a franchise business review. It conducts franchisee satisfaction surveys, where they gather information from franchise owners regarding their experiences with their respective franchisors. The surveys cover various aspects of franchise ownership, including training and support, financial opportunity, leadership, and overall satisfaction. The results of these surveys are then used to compile rankings and reports on the best franchise opportunities.
The company aims to provide prospective franchisees with reliable and unbiased information to help them make informed decisions when considering franchise investments. They evaluate franchises across different industries and provide rankings and ratings based on the feedback received from franchise owners. These rankings can serve as a valuable resource for individuals interested in exploring franchise opportunities.
To help you out, we’ve compiled an extensive list of six incredible sectors and their respective ideas that might be worth considering for 2023.
The food service franchise industry is one of the best sectors to consider for starting a business in 2023 due to its immense potential. This year, food franchises are especially appealing due to their:
- a diverse range of products,
- large customer base,
- and potential for expansion.
The National Restaurant Association predicts that the food service industry will continue to grow. They anticipate sales of $997 billion in 2023, partially due to higher menu prices.
Furthermore, 84% of individuals consider dining out with family or friends as a better way to enjoy free time since they don’t have to worry about cooking or cleaning up afterward.
Initial investment or startup costs for these franchises vary across different business systems. Item 7 of the Franchisors franchise disclosure document or FDD discloses an estimation of the minimum and maximum expenses required to set up a franchised business, covering costs related to equipment, build-out, and reserve capital.
It can be quite costly due to numerous factors:
- the franchise fee,
- property and development costs,
- training-related travel expenses,
- grand opening advertising/marketing outlays,
- and beyond
Franchise Food Business Ideas
Since the food franchise sector is booming, the sky’s the limit regarding food franchise ideas. From your friendly neighborhood pizza joint to the ever-so-trendy vegan food trucks, coffee, and tea franchise, food franchises are endless and reliable sources of income.
These are just a few of the common food franchise options:
- fast food restaurants,
- food delivery service companies,
- food express kiosks
No matter what kind of food idea you settle on, owning a franchise business within the food franchise sector is a surefire way to satisfy hungry stomachs and affluent pockets.
2. Business-to-Business Franchise
Business-to-Business (B2B) franchise business is indeed a rapidly growing sector within the franchise industry, characterized by its potential for significant growth and profitability.
This particular type of franchise model focuses on providing goods or services to other businesses, rather than directly to individual consumers.
Here are some reasons why B2B franchises have gained popularity and are considered lucrative:
Why is B2B a lucrative franchise business opportunity?
Targeting a Niche Market
B2B franchises cater to the specific needs of businesses, offering specialized products or services that address their operational requirements.
By focusing on a niche market, B2B franchisees can tap into a customer base that requires ongoing and reliable solutions, leading to a steady stream of business and revenue.
Larger Transaction Sizes
Compared to individual consumers, B2B franchise businesses often engage in larger-scale transactions. This type of business can benefit from higher-value orders and contracts, resulting in larger profit margins.
These larger transaction sizes contribute to the potential for major profits within the B2B franchise sector.
Long-Term Relationships
B2B franchises often develop long-term relationships with their business clients. This can lead to recurring orders, repeat business, and even contracts spanning several years. The stability and continuity of these relationships contribute to sustained profitability and growth.
Business Needs and Problem-Solving
B2B franchises offer products or services that address specific business needs or solve operational challenges. This positions them as valuable partners for businesses seeking efficient and effective solutions.
By providing essential tools, technologies, or expertise, B2B franchises become integral to the success of their business clients, resulting in long-term profitability.
Scalability and Expansion Opportunities
As businesses grow and require solutions in multiple locations or markets, B2B franchises can expand their operations accordingly, leading to increased profits and market share.
B2B Franchise Business Ideas
The business-to-business (B2B) franchise business model has seen a surge in popularity over the years. With its ability to potentially create multiple business opportunities, it’s unsurprising to see entrepreneurs looking for new business ideas through B2B franchises.
The initial investment for a business-to-business (B2B) franchise can vary significantly depending on the specific franchise opportunity, industry, location, and other factors. The range of initial investment can be quite broad, typically starting from a few thousand dollars and going up to several million dollars.
Examples of business ideas under this model range include:
- corporate meal delivery
- property management services
- printer maintenance
- advertising services
- business consulting
- IT support services
Business-to-business (B2B) is an attractive venture as it offers entrepreneurs the opportunity to take advantage of many benefits, including reduced costs, increased efficiency, and improved customer service.
By partnering with other businesses, franchisees can leverage the power of collective resources and experience to make their business more profitable.
Best Franchises in B2B Sector
- corporate meal delivery
- property management services
- printer maintenance
- advertising services
- business consulting
- IT support services
Business-to-business (B2B) is an attractive venture as it offers entrepreneurs the opportunity to take advantage of many benefits, including reduced costs, increased efficiency, and improved customer service.
By partnering with other businesses, franchisees can leverage the power of collective resources and experience to make their business more profitable.
3. Pet Franchise Business
According to the Humane Society of the United States, there are 65 million owned dogs in America, with 39% of households owning at least one pup. Similarly, 34% of U.S. families have a cat as their pet companion.
Investing in pet franchises can be a worthwhile venture for several reasons. Here are some key factors to consider when evaluating the potential of investing in pet franchises:
Why invest in a pet franchise?
Growing Pet Industry
The pet industry has experienced consistent growth over the years, with a significant increase in pet ownership and spending on pet-related products and services. Pet owners are increasingly willing to invest in their pets’ well-being, leading to a robust market for pet franchises.
Stable and Recurring Revenue
Pet franchises often benefit from stable and recurring revenue streams. Pet owners consistently need products and services. These ongoing needs create a consistent demand for pet-related franchise businesses, providing a solid foundation for financial stability and profitability.
Passionate and Loyal Customer Base
Pet franchise owners are typically passionate about their pets and are willing to invest in their care. This dedication and emotional attachment to their pets often result in strong customer loyalty and repeat business.
Furthermore, starting an established brand and delivering high-quality products or services, building a loyal customer would not be a problem.
Diverse Revenue Streams
Franchise opportunities that cater to pets can generate multiple sources of revenue, particularly in bigger cities where multiple businesses compete for customers’ attention.
For example, a pet franchise may offer grooming services, retail products, and training classes, allowing for multiple income sources. Diversification of revenue streams can help mitigate risks and maximize profitability.
Pet Franchise Business Ideas
Pet-related businesses encompass a wide range of ventures and store brand products that cater to the needs of pets and their owners. Here are popular options in the pet franchise industry:
Pet Retail Stores
These businesses specialize in selling pet products, including pet food, toys, accessories, grooming supplies, and healthcare products. They can be independent pet stores or franchise operations.
Pet Grooming Salons
Pet grooming businesses provide professional grooming services for pets, including bathing, haircuts, nail trimming, and other grooming needs. They may also offer additional services such as spa treatments, teeth cleaning, and de-shedding services.
Pet Boarding and Daycare Facilities
These businesses provide a safe and comfortable environment for pets when their owners are away. They offer boarding services for overnight stays and daycare services for pets during the day, including playtime, socialization, and exercise.
Pet Training and Obedience Schools
Pet training businesses offer obedience training, behavior modification, and specialized training programs for pets. They help pet owners teach their pets basic commands, address behavioral issues, and improve their overall obedience and manners.
Pet Waste Removal Services
These services focus on removing pet waste from residential yards, public spaces, and commercial properties. They ensure clean and sanitary environments by regularly cleaning and disposing of pet waste.
The automotive industry has a consistent demand for maintenance, repairs, and other related services.
As more vehicles are on the road, the need for this business services increases. Vehicles require regular maintenance and occasional repairs, creating opportunities for repeat business.
By providing quality service and building strong customer relationships, an automotive franchise or company can generate loyal customers who return for their automotive needs.
Statista reported that by 2024 revenue generated from automotive repair is projected at 64.2 billion US dollars!
In addition, businesses in the auto industry continue to evolve with advancements in technology. Investing in a franchise that stays up-to-date with technological trends, such as electric and hybrid vehicles or diagnostic tools, can position your business for future growth and expansion.
Given these facts, investing in this sector is highly likely to yield a positive investment return.
Auto Care Franchise Business Ideas
Franchising could be a suitable option if you’re interested in starting your own business in the car sector.
However, it’s important to note that the cost of purchasing a car franchise may vary depending on factors such as the brand and location.
Additionally, keep in mind that the franchise fee is only one aspect of the total expenses involved in starting a car franchise. There are other costs involved such liquid assets such as inventory, equipment, real estate, leasehold improvements, marketing, and working capital.
That being said, car franchise fees can range from tens of thousands to hundreds of thousands of dollars. Some well-known franchise brands have franchise fees in the range of $50,000 to $100,000, while others may have higher fees that exceed $200,000.
Here are tons of business opportunities for new customers and prospective franchisees:
Automotive Repair and Maintenance
Auto-care franchises often specialize in providing repair and maintenance services for vehicles. This can include general repairs, oil changes, tire services, brake repairs, engine diagnostics, and other mechanical services.
Quick Lube and Oil Change
Many auto care franchises focus on offering quick and efficient oil change services. These franchises typically provide fast oil changes, fluid checks, filter replacements, and other basic maintenance tasks.
Auto Body and Collision Repair
Auto care franchises in this sector specialize in repairing vehicle body damage caused by accidents, collisions, or other incidents. They provide services such as dent repair, painting, frame straightening, and overall bodywork.
Tire Sales and Services
Franchises in this category focus on selling tires and offering related services such as tire installation, balancing, rotation, and wheel alignment. Some franchises may also offer tire repair services.
Car Wash and Detailing
Auto care franchises that provide car wash and detailing services focus on cleaning, polishing, and preserving the appearance of vehicles. These franchise opportunities may offer services ranging from basic exterior washes to full interior and exterior detailing.
Automotive Glass Services
This franchise opportunities specializing in automotive glass services handle repairs and replacements of damaged or shattered vehicle glass, including windshields, windows, and mirrors.
Automotive Accessories and Customization
Some auto care franchises cater to customers looking to enhance their vehicles through customization and accessory installations. They offer a range of products and services, such as audio systems, window tinting, vehicle wraps, and performance upgrades.
5. Travel Agency Franchise Industry
On December 23rd, the Transportation Safety Administration reported a staggering 2 million air travelers – far outpacing figures from both 2021 and 2019.
This great news serves as impressive proof that leisure travel has completely recovered – if not surpassed its pre-pandemic strength!
This sector is showing signs of progress as we look to the future with anticipation for increased sales and returns in investment level in this area.
Between its cost-effective overhead and the endless possibilities that come with traveling, now is an ideal moment to invest in a travel franchise.
The initial investment level you’ll need ranges from $50,000 for standard operations to hundreds of thousands of dollars for exclusive trademarks with greater brand recognition and more established systems.
Plus, technology has made it easier than ever before for travel agents to grow their customer base and gain market share.
With the right strategy, travel agencies can offer customers unique experiences at competitive prices.
So, what are the concepts available in this industry?
The travel agency franchise sector has a lot to offer when it comes to franchise options. Numerous travel franchises encompass a wide range of services, from cruise travel to adventure travel and any type of travel imaginable. Depending on the franchise location, customers can find more than just information.
Travel agents often provide detailed information about their expertise prior experience, and suggestions for the best paths to take.
Usually, travel franchise owners benefit from an expansive network of travel suppliers, allowing them to offer discounted prices across multiple locations across the board.
Whether you’re looking for additional financial resources or want to become an entrepreneur in the travel industry, a travel franchise is certainly worth considering. Here are some of the top travel franchise agencies in the US today.
6. Home Improvement Businesses
Home improvement franchising is currently on the rise in the US. With the immense potential for success, this appears to be a great sector for entrepreneurial hopefuls.
According to Statista, in the United States, the market value is forecast to exceed 600 billion dollars by 2025, which is more than double the value reached in 2008. So why is this industry so attractive?
Typically, the home improvement industry focuses on a wide range of services that are essential for any household. People need to repair their homes regularly and will be more likely to trust a credible brand to complete the job.
Moreover, homeowners tend to have higher incomes in comparison with renters, meaning they’re more likely to invest in their homes.
Home Improvement Franchise Business Ideas
Home renovation and remodeling
This franchise focuses on providing renovation and remodeling services for residential properties. It may include kitchen and bathroom renovations, basement finishing, and overall home improvement projects.
Interior design and decor
Franchises in this category offer interior design services, helping clients create beautiful and functional spaces. They may provide assistance with furniture selection, color schemes, window treatments, and overall aesthetics.
Flooring and carpet installation
These franchises specialize in installing various types of flooring, including hardwood, laminate, tile, and carpet. They may also offer services like refinishing, repairs, and maintenance.
Painting services
Franchises in this sector focus on providing professional painting services for residential and commercial properties. They may offer interior and exterior painting, wallpaper removal, and surface preparation.
Roofing and gutter installation
These franchises specialize in roofing services, including installation, repairs, and maintenance. They may also offer gutter installation and maintenance to ensure proper water drainage.
HVAC services
Franchises in the HVAC industry provide heating, ventilation, and air conditioning services. They handle installation, repairs, and maintenance of HVAC systems in residential and commercial properties.
Window and door installation
This franchise focuses on installing windows and doors, offering a range of options to enhance energy efficiency, security, and aesthetics of homes. They may also provide repair and replacement services.
Garage organization and storage
Franchises in this category offer solutions to maximize garage space and improve organization. They may provide storage systems, shelving, and garage flooring options.
Landscape design and maintenance
These franchises specialize in landscaping services, including design, installation, and maintenance of outdoor spaces. They may offer lawn care, irrigation systems, hardscaping, and garden design.
Handyman services
Handyman franchises provide a wide range of home repair and maintenance services. They handle tasks like plumbing, electrical work, carpentry, and general repairs.
These are just a few examples of home improvement franchise business ideas. Each franchise opportunity offers its own unique services and benefits, catering to different aspects of improving and maintaining residential properties.
7. Beauty and Wellness Franchise Businesses
The personal care service industry often referred to as health and beauty franchises, provides an array of products that help clients feel their best (health/wellness) and look their best (beauty). This market is booming like never before with over $250 million a year in revenue.
It’s been predicted that the size of this sector will reach more than $700 billion by 2025 – a massive increase from today!
Franchises in this sector can’t be overlooked any longer, customers are relying on them now more than ever for self-care solutions.
With growing awareness of the importance of self-care and wellness, the beauty and wellness industry is one of the biggest sectors to consider for franchising.
The Beauty and Wellness Franchise Ideas
The beauty and wellness sector presents promising franchise opportunities for aspiring entrepreneurs. While beauty specialists mostly offer services such as:
- hair styling,
- facials,
- manicures,
- pedicures,
- waxing,
- and makeup delivery
Wellness training experts help customers set realistic goals toward healthy lifestyles through nutrition, personal training, yoga, and pilates classes.
With so many beauty and wellness franchise opportunities to choose from, budding business owners have the chance to create their ideal beauty or wellness franchises.
Whether they intend to launch a low-cost beauty lounge where people can relax in style or an upmarket beauty clinic with luxurious sauna treatments.
Every beauty and wellness concept offers unique franchising prospects that are sure to fulfill one’s entrepreneurial aspirations.
The fitness industry in the United States is booming and doesn’t show any signs of slowing down. There are approximately 60 million gym memberships in the US, meaning that roughly 39% of Americans have a gym membership.
Over the past five years, revenue generated from health clubs and fitness centers has increased steadily.
With the rise of at-home fitness equipment and streaming services, the industry has seen an influx of entrepreneurs looking to invest in a fitness franchise. The initial investment may be steep, but the rewards can far outweigh the risks.
Fitness Franchise Business Ideas
2023 is the ideal year to join the ever-growing fitness industry as a franchise owner. There are several ideas from this industry from personal training studios to group fitness classes with top-of-the-line amenities and technology.
The demand for cleaning services in the USA is growing at an average rate of 3.3% per year between 2017 and 2022, making the cleaning industry the fastest-growing market. Despite an increase in competition, the demand for cleaning services continues to rise.
You can choose between working from home or renting a physical office in this sector, which offers multiple options. Some of these options have low initial investment costs and a lower franchise fee compared to other sectors.
In addition, becoming a franchisee does not necessitate prior industry experience. The franchisor will supply training and assistance, making it simpler for novice entrepreneurs to get started. Allowing you to become a franchise owner with ready-made and proven systems.
Cleaning Franchise Business Ideas
Cleaning franchise business ideas offer a diverse range of services to cater to the cleaning needs of different sectors. Whether it’s commercial or residential, these franchises provide comprehensive solutions to ensure cleanliness and hygiene.
Commercial cleaning franchises
This specializes in providing comprehensive cleaning solutions for office buildings, medical facilities, retail stores, and similar establishments. This opportunity offers a wide array of services including:
- carpet cleaning,
- dry cleaning,
- window washing
- pressure washing
- power washing
- and general cleaning
Some commercial cleaning franchise businesses may also provide additional services such as daily janitorial, floor care, and security.
Residential cleaning services
This franchise caters to the cleaning and maintenance of private households, ensuring a clean and organized living environment for homeowners.
Specialized services focus on the cleaning and restoration of specific surfaces like
- hardwood floors,
- carpet
- and tile foors
Furthermore, cleaning franchises may also offer other services such as window cleaning for both residential and commercial properties, among other specialized cleaning solutions.
These franchises provide a convenient and reliable option for individuals and businesses seeking professional cleaning services.
Other Franchise Industries
There are numerous other franchise opportunities available in various industries that can be lucrative investments.
Real Estate franchises offer opportunities in property management, real estate brokerage, and property inspection services, catering to the ever-growing housing market.
Healthcare and Senior Care franchises focus on providing quality care services to elderly individuals, addressing the rising demand for senior care due to an aging population.
Mailing and Shipping franchises provide convenient shipping and mailing solutions to businesses and individuals, benefiting from the increasing e-commerce industry.
Home-based franchises offer the flexibility of working from home in various sectors such as consulting, tutoring, and digital marketing.
Retail and Shopping Services franchises encompass a wide range of businesses, including convenience stores, specialty shops, and automotive services, tapping into consumer needs and preferences.
Educational Child Care franchises focus on providing high-quality early childhood education and care services to young children.
Barbershop franchises have experienced a resurgence in popularity in recent years. Men’s grooming has become a thriving industry, with a focus on both traditional and modern barbering services.
Conclusion
All in all, there are plenty of franchise business ideas for a potential franchisee to consider. From food franchises, business-to-business franchises, pet franchises, auto care businesses, travel agency franchises, home improvement businesses, and beauty and wellness franchise businesses – the possibilities are endless.
With careful research, due diligence, and an understanding of the franchise fees and the overall market situation, many opportunities exist for those interested in owning their own successful business.
When deciding on the type of business to pursue, it is essential to thoroughly understand all associated operating costs and the total initial investment or start-up costs. And with the help of a franchise consultant, you can find the right franchise to invest in.
After all, is said and done it’s important to remember that this choice can either make or break your career as an entrepreneur or lead you down a path of success.
