What is the best franchise to buy for 2013 and beyond. And what should you steer clear of.
by Lewis Trio
©The Best Franchises To Own 2012
How can Mick Jagger help you select a franchise for 2013? Remember their song.......Time is on my side.? [Rolling Stones 1964]
Businesses that can save the consumer time will continue to grow in 2013. Home cleaning franchises lead the list. The best companies are netting franchise operators $250K per year. These companies prefer executives who are transitioning out of the corporate world and are well equipped with the skillsets needed to operate this type of business. One company boasts that over 50% of their franchise operators have an MBA degree. They did not contract during the recession and should really flourish as more and more people return to the workforce in 2013. The home cleaning franchises continue to generate the best franchise operator feedback. No accounts receivable and they are “scalable businesses”, meaning that you don’t incur expenses until you have income. With their repeat business you continue to build layers of new business year after year.
Lawn care, home painting, and other home maintenance services will also do well. As consumers who are working longer and harder than ever want and need their personal time to recharge their batteries and spend time with their families.
Senior care franchises will continue to grow in 2013. Although now with over 40+ franchise companies competing in this sector very careful care should be taken in the selection process. Careful consideration to the company’s experience and feedback from existing franchise operators should be carefully evaluated. The franchise companies that are best prepared to incorporate some of the technology which is widely available will be the leaders for 2013.
Restaurant franchises will continue to struggle with the thought of "national healthcare" keeping most franchise owners up at night. And with the renewed organizational efforts of unions, this could really be a nightmare for franchise owners. Franchise companies are increasingly adding “mobile units” to their franchised inventory. And many will be converting existing company owned restaurants to franchise operated to prop up their performance numbers.
Franchise Financing will remain tight in 2013, driving new business owners to use their 401K’s for working capital. Using a 401K specialist they can move the money out of the 401K without penalty and the new franchise owner can take pressure off their new business by not have to begin debt service on the loan until they are ready. For those who are looking for capital and don’t have a 401K to borrow from they will not find much sympathy from their bank. Wells Fargo is the leader for small business loans but most of their loans are expansion capital for established businesses. New business owners will have to collateralize their loan with assets other than the businesses.
