Whether you're a seasoned entrepreneur or looking to start your first business, a franchise is an ideal investment. While the most high-profile and popular franchises, such as McDonald's, Pizza Hut, and Subway, are all in the food business, you can find franchising opportunities in every industry. If you're not sure what kind of franchise would match your revenue goals, interests, and skills, consider one of these lesser-known, but highly profitable options.
Returns Logistics
As eCommerce continues to dominate the retail space, the need for ground logistics companies has also increased. Thanks to free shipping, easy return options, and same-day fulfillment timelines, more than a third of US consumers are receiving an average of one package every week from Amazon alone.
While many eCommerce sites rely on private carriers or their own transportation network to deliver orders, returns are a whole different story. Processing returns require vetting and restocking the item, which can be costly for retailers.
For this reason, many are now outsourcing returns to third parties that sort and repackage returns into bulk orders that they can send on to resellers. The demand for this service is so high that many of these companies now run on franchise models.
Return logistic franchisors offer a perfected system, relationships with delivery firms and resellers, and a trusted brand that facilitates leads with eCommerce retailers. There are also growing opportunities in the green return logistics industry as governments and individuals take a stronger interest in the circular economy. You can invest in franchises focused on recycling, electronic refurbishing, or food waste.
Pet Industry
More than 50 million American households have at least one pet. If you love animals, then a pet-care-focused franchise may be the perfect opportunity for you.
Pets Supplies Plus is one of the most recognizable franchises operating in this sector. With more than 600 locations across the U.S., Pets Supplies Plus franchises sell an average of nearly $3 million in products and services every year.
Grooming and pet-sitting services are highly popular options for pet-focused franchises. Many companies have proprietary training that ensures staff members are caring and qualified, making it that much easier to attract customers and keep them happy.
The pet market is so large that even niche businesses can bring in substantial profits. Earthwise, a pet food retailer that specializes in organic products, and Wild Birds Unlimited which only sells supplies for birding enthusiasts, have both significantly increased their territories over the past decade.
Wellness Clinics
The U.S.'s $50 billion per year wellness industry is the largest in the world and the demand for all types of services and providers is growing. For example, urgent care facilities serve as an effective bridge for patients with chronic conditions that require ongoing monitoring but are not ill enough for hospitalization.
Preventative wellness centers that offer a-la-cart diagnostics are also becoming more popular with consumers. Walk-in patients can request vitamin deficiency, fertility, or hormone testing without the need for a referral.
Owning a wellness franchise is a great way for entrepreneurs without a medical background to enter this lucrative industry. While you may need buy-in from a licensed medical provider to operate some types of health centers, this is not always necessary.
Courses and Events
If your ideal opportunity involves socializing and event planning, you may want to consider becoming a franchisee of a well-known training program. Patented exercise programs like Jazzercise are the most common examples of this. However, this segment has expanded into other areas, such as paint-and-sip party experiences or in-home cooking courses.
Social media has also increased franchise opportunities as consumers want to recreate the images they see on their feeds. The photography franchise Floganza popularized the ubiquitous flying dress travel photo. The franchisor provides investors with dresses, marketing materials, and coaching.
Many well-known afterschool programs are also franchises. Investors can leverage the name recognition and well-developed materials of tutoring companies like Sylvan Learning, Kumon, and the Huntington Learning Center to build a successful education business.
Consignment Shops
One of the most surprising types of franchises is the second-hand clothing shop. Operating a Plato's Closet or a Once Upon a Child location requires a minimum $250,000 investment. With the used clothes market expected to reach more than $75 billion dollars within the next five years, franchisees can anticipate solid returns.
