Is Owning a Franchise Profitable? How it Works as an Investment

It’s only natural for entrepreneurs like you to want to make a good profit from franchising. After all, franchising is a business venture, and one of the main reasons to invest in any business is to make money. When done right, franchising with a brand like Altitude Trampoline Park can provide significant returns on your investment of money, time, and effort. Let’s look at the benefits and challenges of franchising, its capacity to pay off, and how your chosen industry and services can affect how much you profit from a franchise.

Franchising Perks and Difficulties

Franchising is an effective method of owning and operating a small business. Digital marketing solutions provider WebFX.com reported in March 2024 that franchises make up 10% of the total businesses in the U.S., with over 3,000 individual franchise brands, contributing $827 billion to the U.S. economy. Some of the perks that help entrepreneurs like you profit from franchising are the following:

Proven business concept that can bring in customers and earn their trust.

Opportunity to join a new industry through training provided by the franchisor.

Support services courtesy of your franchisor; services often include market research, large-scale advertising, location selection, and IT services.

Supply chain assistance; your franchisor can help you connect with vendors and suppliers for regular business supplies and equipment.

Easier financing than an independent business venture; banks and lenders are more likely to provide financing for a franchise because of the proven nature of the brand and business model.

Peer network with your fellow franchisees under the same brand, whom you can turn to for assistance and suggestions.

Of course, no business venture is foolproof. Even franchising has a few challenges to overcome:

Franchise fees and royalties are expected in addition to your other business expenses.

Brand standards mean you have to surrender some of the creative control of your business.

Brand reputation is a two-sided coin; a brand that gets a bad reputation may affect your own business by association.

Franchise Profit Potential

Franchising offers you an opportunity to make good returns on your investment. Since you own the business, the profits are yours. According to an April 2024 report from bar and restaurant inventory control solution company Sculpture Hospitality, franchisees earn an average of 4%-12% of their franchise’s gross revenue.

How much gross revenue your franchise makes can depend on a variety of factors. First, the effectiveness of your management is important to get the most out of your local market. Having a good location will ensure your franchise is visible and easily accessible by your customers. A franchise that aligns with your passions and interests will make it easier for you to find the drive to pursue success.

Industry and Services

Lastly, two of the biggest factors in how much you can profit from a franchise are the industry you join and the services you offer. Market demand can fluctuate, and joining an industry that’s seeing growing interest is a good way to make sure you maximize your profits. For example, Altitude is in the trampoline park industry, which according to market analyst IBISWorld’s January 2024 report has a U.S. market value of $750.4 million with just 378 businesses in the entire country, meaning there’s a lot of untapped local markets available. This market is projected to grow through 2029, making it fertile ground to grow new businesses.

Services are also important, particularly in the number of services you offer. A business that offers one service can do well, but it relies on having enough customers who want or need that singular service, as well as having the capacity to serve those customers.

A franchise like Altitude, however, enables its franchisees to offer multiple services, from walk-in customer service to party and event hosting to memberships, which provide multiple revenue streams for you and broaden the range of customers you can target.

Take Off in A Profitable Business with Altitude

We’re eager to welcome you to our team and show you the advantages of franchising with us. Fill out a franchise form today to learn more about franchising with Altitude.

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