As a new franchisee, you may give yourself the best chance of financial success by choosing a brand with numerous income streams. With multiple revenue streams, your business earns money in more than one method, such as a retail business with a subscription service or a service business that also sells products.
This is an essential factor to consider while thinking about your future franchise business. Why? It not only helps you generate more money, but it also allows you to reach a larger number of customers. For example, a consumer might not be interested in the product you’re selling, but they may be interested in the service you offer. This results in increased profits, a wider reach, and greater franchising success.
Put simply, the more opportunities you can reach a consumer, the more likely it is that they will subscribe to your services. It just allows you to offer them more.
You can quickly determine which businesses provide more revenue opportunities in the early stages. Read the brand summary and how their business plan works as you investigate the brand.
It's worth mentioning that most franchise businesses will provide multiple revenue sources because it's a well-known benefit.
Here are a few examples of franchises that offer multiple income streams:
- Boutique fitness franchises
- Personal Care franchises
- Children's Education or Well-being franchises
- Car wash franchises
- Salon franchises
- Home Service franchises
Some ways Franchises Add More Revenue Streams
The key is to keep your mind open to new possibilities and be creative when they present themselves. Many times franchisors offer opportunities to increase profits by offering a variety of revenue streams. For example, in a boutique fitness brand, there could be membership, packages, retail, and private/small group classes. These separate revenue streams give the franchisee flexibility in how they market and drive business to different revenue stream opportunities. A franchise based around children’s education may only be open Monday through Thursday but gives the franchisee options to be open on the weekend to create additional revenue if they choose.
Offering various revenue streams can be done at a low cost. Furthermore, you may target a certain market. First, determine what your target audience wants and then provide that need through your franchise.
To learn more about franchises with multiple income streams, please schedule a call here.