Editor’s note: This article was first published in September 2011, as a forecast for 2012, and every figure and investment amount it cites, including Sport Clips locations, MTB centres in Spain and Sushimore outlets in Madrid, dates from 2011.
We’ve analysed the market looking for the most profitable franchises in each sector, including some that are fairly new but that, in our view, could be well received by consumers because they’ve succeeded elsewhere in the world thanks to their innovation, their originality or simply because they sit in the right niche of current demand.
Innovative franchises
Sport Clips
With more than 600 franchises in the United States, Sport Clips plans to expand to new countries. This franchise offers a different take on the men’s barbershop, aimed at sports fans, with the idea of making the wait at the barber’s more enjoyable. While customers get their hair cut, they can follow the biggest sporting events live. Sport Clips was chosen by Forbes magazine as one of the most successful franchises of the moment. Would it work in your city?
Investment: from 135,000 euros.
MTB
The footwear technology this franchise uses has led to more than 200 centres opening in Spain alone in under 5 years. These “shoes” aren’t cheap, but they sell, and customers recommend them to other customers, saying they help people lead a healthier, more modern lifestyle.
Investment: 80,000–100,000 euros
In Bicycle (IBWT)
In Bicycle We Trust is a Spanish chain that specialises in importing and selling electric bicycles. The success of this franchise lies in the need for alternative ways to get around city centres while avoiding some of the parking problems and traffic jams. This franchise is brand new, but it has real potential to establish itself in the market, especially given that some town councils in Spain are keen to make it harder for vehicles to enter city centres (pollution, noise, savings…).
Investment: from 38,500 euros
Hospitality franchises
Sushimore
We’ve chosen Sushimore as the breakout franchise in the hospitality sector. This franchise changes the concept of “fast food” by bringing in Japanese cuisine. Its outlets are designed for small premises and shopping centres, covering self-service as well as takeaway and home delivery. It already has more than 15 outlets in the Madrid region alone.
Investment: 38,000 euros
Food franchises
In Vitta
One of the healthiest franchises in the food sector, covering categories such as diets, sport, beauty and health, all through the sale of natural products. After great success in the United States, In Vitta is arriving in Spain.
Investment: 26,000 euros
Beauty and health franchises
Once again, personal-care franchises are among the most profitable businesses for entrepreneurs who want to break into the franchise market. Among these, Lipocero and Bye Bye Pelos keep expanding; both are among the franchises that pay back the invested capital quickly.
Pilates Zenter Woman
A franchise focused on women (its potential customers) and on Pilates, which is increasingly in demand. We highlight this franchise for how well its centres are equipped and for the ongoing training it gives its franchisees, as well as an investment in line with the sector.
Investment: 32,000 euros
Consulting franchises
E-Consultores
Advisory firms and consultants are in growing demand in these times of crisis, when a small business or a self-employed worker may feel somewhat lost and large companies need to move into new markets. That’s where these professionals come in, and E-Consultores has managed to take advantage of this new boom in the “need for information”. Its advantages are the low investment (7,500 euros) and not needing business premises for at least the first year.
Investment: 7,500 euros
Remember: “Past success doesn’t guarantee the same results in the future.” In the franchise sector, some brands looking for fresh capital have helped franchisees open outlets without a proper market study. That’s why you need to analyse the area where you’re going to open a franchise very carefully: some may have worked perfectly in Madrid, but that doesn’t mean they’ll do the same in Córdoba, just as some grew fast in 2006 and that doesn’t mean they’ll keep growing in 2012.
Further reading
Featured image: Tamanoeconomico, CC BY-SA 4.0, via Wikimedia Commons.
