Almost everyday someone asks me, “What’s the hottest franchise to buy?” People assume that there is some slick, cool, new concept that's just waiting to take the industry by storm. I think the hope is that they can invest early, hit-big, and not have to worry about competition.
Unfortunately, there is no easy street in life. In franchising, the best concepts are not the hottest trends. The best concepts and companies usually fly under the radar and are not very sexy. I mean, virtually no curb appeal at all.
However, these types of businesses are long-term opportunities, recession resistant, and will stick around for the long haul. For example, businesses where people are needed to perform a service.
New hot concepts denote no competition. However, as I talk about in my book, Franchise Savvy, no competition can hurt your business. If I declared tomorrow that I have the best franchise ever that fills a need but no one has ever done it before, most people would be apprehensive. And rightly so! How do you know if someone will actually use this new-fangled service? So, competition is a good thing. Oversaturation is not.
When thinking about franchising, most of the time, a franchise is not about a new invention or product. It’s a pre-packaged system that has been rolled out to help those willing to follow it find certain success.
McDonald’s did not invent Hamburgers. Meineke did not invent mufflers. Supercuts did not invent hair cuts. They just figured out a better, more efficient way of doing business. They systematized the processes and trained people to do it from anywhere.
Peel back the onion and you’ll discover that McDonalds does not only sell hamburgers, nor Meineke mufflers or Supercuts hair cuts. What they sell is dependability and reliability.
If you’re looking to build a business that will leave a legacy, you need to think about tried and true business concepts. I know of some franchisees that got in with service brands and have passed on their business to their children and even grandchildren!
The next time you think about what’s hot in franchising, research service brands. Find one or two that you like and I can help you discover which could be right for you.