What are the Best Franchises to Buy? Food Franchises vs. Non-Food Franchises
People buy franchises for a variety of different reasons and what’s right for you may not suit someone else. If you’ve been weighing up your options and looking for the best franchise to buy, we’ll show you what to consider.
Thinking of buying a franchise?
The disruption of the pandemic over the previous 18 months is starting to settle down, and although the Australian economy held up better than most, millions of Australian employees and business owners are on the verge of “The Great Resignation”.
This term refers to the large numbers of people leaving their jobs following the pandemic. This phenomenon has been observed in the UK and USA, and it’s happening in Australia now too.
Naturally, buying a franchise represents a smart choice when moving laterally in your career. Tapping into a well-established brand name with existing buying power, ready-made processes, and an audience that already trusts the name on your building is an appealing choice for many.
But the real challenge is deciding *what* type of franchise to buy. So, what are the best franchises to buy? Are they food franchises? Or non-food franchises, for example, retail stores with nationwide recognition?
In this article, we’ll answer those questions for you and help you decide what the best franchise for you looks like.
How to choose the right franchise
It’s a common mistake to choose a franchise based on revenue potential alone.
Although you want to tap into an existing market and a customer base hungry for your products and services, choosing on numbers alone is asking for trouble.
Why?
Because franchise ownership is a serious commitment that requires attention to detail, care, and a passion for your day-to-day responsibilities. If you don’t love the fast-paced environment and challenges of a food franchise, then a business like Subway, Oporto, or McDonald’s probably wouldn’t suit your temperament.
The right franchise is one that suits your existing skillset. Of course, you want to learn on the job and show off your business acumen, but starting from scratch in terms of the necessary skills is likely to do you more harm than good. Some of the key skill sets to assess in your own business arsenal include:
- The ability to recruit employees
- Your management style
- Your experience in the same or similar fields
- Your passion for the industry
- Your understanding of the industry
- Your excitement to work in the day-to-day business
The right franchise for you will be a cross-section of all these questions.
Clark Rubber Tip: It’s easy to analyse your options endlessly and get trapped. To help simplify your choice, focus on three key areas of your life. These are your finances, your expected ROI, and your lifestyle. If a franchise will stretch your finances to breaking point, fall short of your ROI goals, or negatively impact your work/life balance, it might be best to keep searching.
Now that you’ve started thinking about the skills you’ll bring to the table, let’s talk about your franchise options. Although there are 65,000 franchise units operating in Australia, among a $181.1 billion market, it’s best to divide your franchising options into two categories:
- Food franchise options
- Non-food/retail franchise options
Let’s unpack each option and see what feels right for you.
Food franchise options explained
What do Domino’s, Nandos, Noodle Box, Sushi Sushi, Mad Mex, Subway, and McDonald’s all have in common?
No, they’re not a who’s who of the local food court (actually, they might be). Those businesses are all food franchise options popular for entrepreneurs looking to run their own businesses. Food franchise opportunities are consistently popular as they represent an industry that’s always in demand.
People need to eat, and if Australia’s rolling lockdowns showed anything, it’s that the demand for fast food is not always susceptible to the same market disruptions many other sectors endured.
Food Franchise Pros | Food Franchise Cons |
✔ Turnkey business
✔ Casual dining becomes more attractive when household budgets are tight
✔ Potentially easier financing
✔ Brand recognition
✔ High-energy, exciting work environment
| ✘ Potential labour struggles
✘ Food franchises are price sensitive and often have low margins
✘ Potentially long working hours
✘ High competition
✘ High turnover (means need for ongoing training)
✘ Potentially high rent in shopping centres
✘ A shrinking market as the food delivery industry grows |
While food franchise opportunities present an exciting and busy environment that will help you grow as a business owner, that can quickly become a double-edged sword. It’s not uncommon to start before most people start their workday and finish after most people have gone home.
In a competitive marketplace, you’ll need to weigh up the challenges of running a food franchise and whether the impact on your lifestyle is suited to your goals.
Food Franchise | Level of Investment | Average Cost |
Sushi Sushi | Low | $120,000 to $700,000 |
Noodle Box | Low | $200,000 to $250,000 |
Brumby’s | Medium | $370,000 to $430,000 |
Mad Mex | Medium | $250,000 to $550,000 |
Domino’s | Medium | $450,000 to $600,000 |
Nando’s | High | $1,050,000 |
Non-food and retail franchise options explained
Non-food and retail franchises provide the second broad category of businesses you can invest in.
As an umbrella term, you can run a franchise across a wide range of industries from retail to cleaning, business services to automotive, tax and finance to advertising. As a long list of options, there’s no shortage of choices.
One of the primary advantages of running a non-food franchise is the ability to grow in your local area without many of the growing pains that come with starting a traditional business from scratch. From marketing support to product sourcing and brand recognition, a non-food franchise helps you penetrate an existing market.
For example, as a non-food franchise, ownership of your own Clark Rubber franchise unlocks 75 years of goodwill and an IP that is widely recognised and respected.
Non-Food Franchise Pros | Non-Food Franchise Cons |
✔ Buying power
✔ Brand recognition
✔ Training & Support
✔ Independence of small business ownership with ongoing backing
✔ Higher rate of success than start-up businesses
| ✘ Set marketing message to follow
✘ Your store is tied to the brand’s reputation
✘ There may be less room for creativity
✘ Higher initial costs (franchise fees and service fees) |
What is the best franchise for you to buy?
The “best” franchise for you to buy is the one that suits your goals as a business owner. If you don’t want to create a business from scratch, a franchise helps you get a head start on your business goals.
And with a network of 59 franchised stores, Clark Rubber knows a thing or two about franchising. Offering an exciting career change as well as modern lifestyle benefits, taking charge of your own Clark Rubber franchise may be the new business opportunity you’ve been waiting for.
For more information, browse new franchise opportunities here.