Choosing a Profitable Franchise
When considering career options, many people believe they have only two choices: working for someone else or starting their own business. However, there’s a middle ground—becoming a franchisee. Owning a franchise allows you to run your own business with the support of established tools, training, advice, and an existing customer base.
Some franchises are more lucrative than others. If your goal is to maximize earnings quickly, investing in one of the more profitable franchises in Canada could be beneficial.
No matter your interests, there is likely a successful and profitable franchise available, whether in food, beauty, automotive, advertising, or another field. However, keep in mind that the most profitable franchises often require a substantial investment, including minimum financial requirements. For example, some franchises may require applicants to have a net worth of at least $500,000 and access to $100,000 in liquid assets.
Additionally, buying into a franchise involves costs beyond the initial investment, such as legal fees, website development, renting or purchasing premises, furnishing, buying supplies, and recruiting and training staff—before you even consider regular royalty fees. The more popular and profitable the franchise, the higher the initial costs will be.
Because these requirements relate to personal wealth, many franchises with financial restrictions on new applicants may not accept bank loans or support franchisor financing. For many aspiring franchisees, securing this level of funding is not feasible, making the initial investment daunting despite attractive returns. However, for those with the necessary funds, significant profits can be made by investing in a profitable franchise.
Ensuring Your Franchise is Sustainable and Profitable
We’ve recently emphasized the importance of sustainability. It’s not only a government priority but also what consumers want. Demonstrating your commitment to a sustainable future can help maintain consumer loyalty.
What is Sustainability?
The term “sustainability” is often used to refer to environmental friendliness, which is indeed a part of it. Environmental sustainability involves ensuring that we leave the planet in good condition for future generations.
Sustainability also encompasses economic and social aspects. Economic sustainability means reducing costs and increasing profits, ensuring the business’s long-term viability. Cost savings often lead to environmental benefits—for example, turning off lights, switching to energy-efficient devices, and reusing packing materials.
Social sustainability relates to providing employees with a good work-life balance, which benefits the business both environmentally and economically. Happy employees are more likely to stay, reducing recruitment costs and ensuring they can work autonomously. This autonomy makes remote working possible, reducing the need for expensive office space, utilities, and transportation—also beneficial for the environment.
What Assistance is Available?
Franchises in the tourism industry might benefit from Destination Canada’s Canadian Business Events Sustainability Plan. Announced on May 31, 2022, this plan provides sustainability training to over 20 partner businesses, supporting the development of their sustainability programs. Much of this work will occur through international conferences, exhibitions, workshops, and seminars. Destination Canada will also host corporate meetings and group events.
Franchises outside the tourism sector can still benefit from the insights and progress reports shared from these events. The Government of Canada offers resources for businesses interested in sustainability.
Why Focus on Sustainability?
A business focused on sustainability across environmental, economic, and social dimensions is likely to remain profitable in the long run, ensuring a steady income.
To achieve long-term sustainability, set improvement goals, monitor progress, make necessary adjustments, and strive for continuous improvement.
For more information on support available to businesses, visit the Government of Canada’s resources.