Even in a weak economy, there are franchising opportunities with great potential to produce high profit margins without fail. These are usually business ideas with low operating costs, low competition and high barriers to entry. Typically, good franchise ideas can turn into profitable ventures because they are businesses that already operate successfully for years in diverse market conditions. Besides, in most of the cases, hands-on training is provided to ensure a thriving performance.
1. Financial Services Franchises
Financial services franchises include income tax preparation, accounting, and insurance services. Profit margins are high because they don’t include fixed expenses such as rent and wages. Often, these types of franchises are established as home-based businesses.
The barriers to entry are high because the services provided are professional and require expertise in the field. Also, they generate repeated income. For instance, every April people make their taxes, which is a recurring source of income for this type of business.