Are you thinking about starting a new chapter as a franchise owner? Whether you are feeling the pinch from career changes, looking for more stability, or just ready to be your own boss, franchising could be the move that sets you up for success. Knowing the best franchise return on investment (ROI) can help you make a smart choice that boosts your chances of financial success. After all, it is not just about starting a business but about making sure your investment pays off. Learn more about the best ROI franchise opportunities here.

The Basics of Franchise ROI

Franchise ROI measures how much profit or return you can likely expect relative to your initial investment. It is typically calculated by comparing the franchise’s annual net profit to the initial investment. The formula is:

ROI = (Annual net profit / Initial investment) x 100%

For example, if a franchise generates a net profit of $100,000 per year, and the initial investment is $200,000, the ROI would be 50%. The higher the ROI, the more profitable the franchise.

To determine a franchise’s average ROI, you need to gather financial data from the franchise disclosure document (FDD) and other reliable sources, such as the franchisor and existing franchises. The ROI gives you a clear picture of how well your franchise investment could perform. Here is why ROI is an essential factor:

• Financial performance: ROI helps gauge how profitable a franchise is likely to be, allowing you to weigh the potential risks and rewards. Higher ROI means you could achieve profitability sooner and gain a better financial return.
• Investment timeline: By understanding the ROI, you can better estimate how long it will take to recoup your investment.
• Informed decision-making: Evaluating ROI helps you compare different franchise opportunities on equal footing, giving you a clearer understanding of which franchise offers the best financial potential for you.

Examples of Best ROI Franchises

Franchises with low operational costs and strong customer demand generally have the best ROI. Let us explore some examples of the best ROI franchises:

1. Staffing and recruitment franchises: Recruitment and staffing franchises typically have a high ROI because they require minimal inventory. There is also a steady demand for workforce solutions in a variety of industries, such as manufacturing, healthcare, clerical, and IT. The staffing industry provided jobs for 13 million people in 2023, according to the American Staffing Association.
2. Home remodeling franchises: The country’s aging housing stock and a tight housing market are prompting customers to turn to home improvement and remodeling. Most home improvement and remodeling franchises are mobile, keeping start-up costs low. A low initial investment puts home remodeling franchises on a solid footing to generate a strong ROI.
3. Home services franchises: Homeowners regularly invest in maintaining or upgrading their properties, keeping the demand for home services steady. Many home services franchises, like lawn care or pest control, offer recurring services on a weekly or monthly basis, ensuring consistent revenue and the potential for strong ROI.
4. Youth sports franchise: On average, kids between the ages of 8-12 spend four to six hours per day watching or using screens. As a result, parents are striving to find alternative activities for their children, like sports. Youth sports leagues can be run in community spaces and existing sports facilities, which keeps operating expenses low and increases profit margins.
5. Travel planning franchise: Travel planning is a flexible, home-based opportunity. You will generate revenue from booking commissions and creating customized experiences will help you get repeat business and word-of-mouth referrals.
6. Event planning franchise: An event planning business can be a lucrative venture for entrepreneurs who want to open a franchise with the potential for high ROI. People are turning to professionals to help plan special occasions and they have big budgets. The average wedding costs more than $30,000, according to Wedding Report. As an event planner, you can specialize in weddings or cater to a variety of occasions to create robust demand.

AtWork: Low Investment, High Reward

Companies regularly need top talent to fill temporary, permanent, and contract positions, and AtWork’s established reputation makes it a trusted provider for businesses of all sizes. With an initial investment starting at $153,500, AtWork benefits from relatively low overhead costs, as it does not require significant inventory. AtWork’s business model allows for high profit margins and strong ROI. The average gross revenue of AtWork’s 76 locations open for one to three years was $3.3 million last year.*

As part of its low staffing franchise cost, AtWork provides comprehensive training and ongoing support to help franchisees succeed, which reduces the learning curve and helps accelerate growth. The brand’s strong market presence and national support help franchisees attract clients more effectively – AtWork has nearly 100 locations nationwide. AtWork’s accounting team also handles your payroll processing, client payment processing, garnishment management, tax filing, payments, and more. Instead, franchisees can focus on building relationships with local businesses and job seekers, ensuring a steady stream of revenue and quicker profitability.

Help Put Your Community to Work

Get started to learn more about partnering with AtWork to launch a franchise with a strong ROI that provides jobs for people in your community.

*See FDD for details.