The perfect high-end franchises to put money into proper now
Some aspiring entrepreneurs set up franchise businesses not just for a living. Instead, they have much higher ambitions and seek out high-end franchise businesses with the potential to make significant profits.
What is a high-end franchise?
This is usually a satellite company for a luxury brand that has already created a niche with consumers willing to pay a high price for a product or service. It can also include occasions where your initial investment is substantial, but the likely returns make it worthwhile.
For example, some hotel franchise companies take over an existing business model and offer you the option of opening your own accommodation in a relevant location. Luxury jewelry, antique and art stores preferred by the wealthy sometimes seek well-screened franchise partners. However, it is also worth exploring both food franchises and beauty franchises if you want to be your own boss and instantly connect with discerning and wealthy buyers.
If you fancy the finer things in life – or would rather develop distribution channels for those who do – what kind of high-end franchise is the best chance for success right now?
Mintel said the value of the UK beauty and grooming sector rose 24% to a staggering £ 1.9 billion in 2020
Do people have money to spend?
Of course, economic prosperity is mixed both globally and across the UK, which is why it is important to select high-end franchise opportunities with particular care. To illustrate that point, the six richest people in the UK at the end of 2019 had the equivalent of the 13 million UK residents at the other end of the scale.
It is also worth noting that, according to the FT statistics analysis of the Office of National Statistics, one in five people born between 1946 and 1964 (baby boomers) is a millionaire.
If there’s a more global picture that excites you, the latest Credit Suisse wealth survey found there are 46.8 million millionaires worldwide. In the United States alone, an estimated 1,700 new millionaires appear every day.
Statistics like this clearly show that even after a pandemic and economic constraint, there are still many people with disposable income. Including high rollers with cash to splash around and wealthy individuals willing to pay higher prices if you offer something worthy of their interest.
Which leads us to consider food, beauty, and vacation travel as fertile options.
Hotel franchise overview
According to the Luxury Institute’s survey of spending habits among affluent consumers in the UK, US, some European countries, as well as China and Japan, vacation travel is likely to be the largest increase in spending. With food in second place (more on that later).
Vacation travel will take place where there is the greatest increase in spending. However, do you have what it takes to possibly remodel or build a hotel building?
Note, however, that high-end franchise businesses – with the potential for significant returns – don’t always have to be geared towards wealthy customers. The perfect example of this is easyHotel plc. This is a hotel franchise opportunity that will give you a solid foothold in the budget accommodation sector. A part of the hospitality industry that is relatively resilient and likely to be ripe for growth in the years to come.
easyHotel is not an option for everyone looking for a quick and inexpensive entry into the world of franchising. You need capital to erect a new building or to convert an existing building to the required standard and in a location with sufficient market potential. However, the returns on a successful business could be substantial, especially since this company is known for its competitive sign-up and annual franchise fees. It could also be your chance to start an overseas franchise business as this is a truly international company.
Big wins on top notch food
The British love their food. Always ready to embark on meals and culinary experiences that are indulgent or strikingly unique. This includes, for example, luxury food companies and upscale event caterers such as The Gourmet Hog Roast Company.
Again, your goal may not be to reach out to large funders. You could target a large number of customers for big profits. This could alert you to food franchises that allow you to open multiple branches in a region or even nationwide. This type of high-end investment is welcomed by some ambitious restaurant chains.
The British are always ready to embark on meals and culinary experiences that are indulgent or strikingly unique
Luxury beauty franchise
One sector that is attracting both a rapidly growing customer base and a willingness to purchase luxury products is hair and beauty franchises. You won’t be surprised to learn that the online demand for products in this category has increased significantly recently. The value of UK beauty and grooming products rose 24% to a staggering £ 1.9 billion in 2020, according to Mintel.
If you can demonstrate that your range has a competitive advantage, e.g. B. Purity or Scientific Efficiency, or when setting sustainability priorities, check the important boxes that consumers are spending more or more on.
Connect to a high-end franchise
As with any start-up, even if you have a preference and the urge to go for a high-end franchise, you should do a lot of research. Take a deep dive into the range of franchise options, there are thousands.
Whether you’re looking for a luxury brand to promote or you’re ready to invest significant capital, the high returns on cash still depend on good old-fashioned footwork.