Buyers

Top 7 Profitable Franchises in the United States: Recession Proof Franchises that are Actually Profitable (October 2024)

Author:
Saad Benryane

United states Economy to Grow Steadily in 2024

In October 2024, the U.S. economy demonstrated resilience despite high inflation and elevated interest rates. Real GDP grew at an annual rate of 2.8% in the second quarter, a significant improvement from the 1.4% growth in the first quarter. This growth was largely driven by strong consumer spending, increased nonresidential investment, and government spending, with full-year growth projected to be around 2.0%.

However, challenges remain, as inflation stays above the Federal Reserve's 2% target, with core inflation at 2.9%, mainly driven by rising shelter costs. The Federal Reserve is expected to cut interest rates twice by the end of 2024 to support future growth, while the unemployment rate has edged up to 4%, reflecting a softening labor market. Overall, the U.S. economy is expected to maintain steady, though moderating, growth as it heads into 2025.

1. Multiunit Automotive Service Franchise Portfolio

This multiunit automotive service franchise portfolio offers a scalable, high-margin investment opportunity in San Diego. With an established presence in major trade areas, the franchise model focuses on simplicity, efficiency, and high-quality customer service, making it a lucrative investment option.

  • Location: San Diego, California
  • Asking Price: $11,250,000
  • Sales Revenue: $15,000,000
  • Profit: $4,500,000
  • Year Started: 1994
  • Employees: 12

Business Highlights:

  • Franchise Model: The business operates with a streamlined model designed for scalability and profitability. The use of cutting-edge technology and a small real estate footprint ensures operational flexibility.
  • Operational Strength: The business model emphasizes simplicity and scalability, with high operational margins and low real estate costs, leading to a quick ramp-up period in the early years.
  • Support System: Franchisees benefit from comprehensive support, including marketing and training programs, all managed by the franchisor. This frees up franchise owners to focus on strategic growth and expansion.
  • Proven Success: With a longstanding track record in the automotive service industry, this franchise offers a turnkey solution for prospective investors, requiring minimal hands-on involvement.
  • Growth Potential: With robust M&A capabilities and the potential for territory expansion, this franchise presents significant opportunities for further development and increased profitability.

Business Operation:

  • Expansion Potential: With a highly scalable franchise model, there is ample opportunity for territorial expansion and business growth.
  • Unique Business Model: The high-margin and low-overhead model make this franchise an attractive option for investors seeking rapid returns on investment.

Reasons for Selling:

The current owners, who have a strong track record in the automotive service sector, are selling to pursue new opportunities.

Support & Training:

Comprehensive training and support are provided to ensure a smooth transition and operational success for the new owner.

Relocatable:

While currently based in San Diego, the franchise model is scalable and could be expanded or relocated to other regions, offering strategic growth opportunities.

This is a rare opportunity to acquire a high-performing, scalable franchise portfolio in the automotive service industry.

>> Contact Seller <<

2. Data-Driven Automotive Service Business

This data-driven automotive service business operates with a simple, disruptive model in a fragmented industry. The business is situated in multiple trade areas with clean, compact, and recognizable storefronts that offer flexibility and cost minimization through small real estate footprints. The business operates efficiently in key locations with a large surrounding population.

  • Location: San Jose, California
  • Asking Price: $10,500,000
  • Sales Revenue: $13,000,000
  • Profit: $4,250,000
  • Year Started: 1991
  • Employees: 12

Business Highlights:

  • Scalable Model: Positioned in multiple trade areas, each location serves a surrounding population ranging from 75,000 to 160,000 people.
  • Income Demographics: The average household income within a 3-mile radius of each location ranges from $80,000 to $150,000, supporting a solid customer base.
  • Turnkey Operation: Designed for ease of management, with a streamlined operational model that minimizes real estate requirements and focuses on maximizing returns.
  • Owner Qualifications: New ownership should have management experience. While real estate knowledge is advantageous due to the opportunity for expansion and scaling, it is not a requirement for success.

Business Operation:

  • High Growth Potential: With its scalable model and presence in multiple key trade areas, the business offers significant potential for further growth.
  • Established Market Presence: With a presence since 1991, the business has a strong foothold and is recognized in the trade areas it serves.

Relocatable: 

This business model can be expanded or relocated to other regions, providing flexibility for new owners.

This is an excellent opportunity to acquire a successful automotive service business with a well-defined market and the potential for substantial growth.

>> Contact Seller <<

3. Multi-unit automotive service franchise in Boston, united states

This multi-unit automotive service franchise, located in Boston, Massachusetts, operates within high-traffic trade areas, offering a proven track record of profitability. With a focus on a simple, disruptive model, this business gains market share in a fragmented industry, generating significant cash flow from repeat customers.

  • Location: Boston, Massachusetts
  • Asking Price: $10,000,000
  • Sales Revenue: $10,750,000
  • Profit: $4,000,000
  • Year Started: 2003
  • Employees: 10

Business Highlights:

  • Operations: The franchise runs in high-traffic trade areas with compact, recognizable storefronts, each occupying 1,500 sq ft with 90 feet of frontage. The business benefits from an average traffic count of 30,000 vehicles per day, providing excellent visibility and customer access.
  • Revenue Model: The business generates over 70% of its revenue from repeat customers, providing a stable and lucrative income stream.
  • Growth Potential: This is a scalable opportunity with strong market positioning. With experienced franchise management, there’s potential for further expansion in both customer base and operational footprint.

Business Operation:

  • Ownership Requirements: A new owner should have management and real estate knowledge due to the opportunity to scale a large multi-unit buildout. Previous franchise or multi-unit management experience is advantageous.

Reasons for Selling: 

The current owners are looking to sell and transition to other ventures, providing an opportunity for a new owner to take over this established and profitable business.

Support & Training: 

Support will be provided to ensure a smooth transition and continued success for the new owner.

Relocatable: 

While based in Boston, this franchise model has the potential for scalability and expansion into new regions.

This is a great opportunity for a buyer looking to enter the franchise space with a well-established, high-performing business model.

>> Contact Seller <<

4. Residential and commercial services franchise:

This franchise business, located in Denton County, Texas, presents a compelling opportunity for an owner-operator seeking a proven growth model and strong cash flow. Focused on residential and commercial services, the business has demonstrated consistent growth and success since its establishment in 2018.

  • Location: Denton County, TX
  • Asking Price: $4,500,000
  • Sales Revenue: $6,245,326
  • Profit: $1,691,608
  • Year Started: 2018
  • Employees: 28

Business Highlights:

  • Ownership: Run by a husband-and-wife team who have reduced their involvement to 10-20 hours per week, thanks to the professionalization brought by a General Manager.
  • Customer Base: Majority of sales leads come from an online presence, reducing reliance on direct client outreach.
  • Services: The business focuses on residential and commercial fire, water, mold mitigation, and reconstruction, with growing capabilities in large commercial projects.
  • Financials: With over $1 million in cash flow to the owners, this business is eligible for SBA lending.
  • Growth Opportunity: The business offers significant expansion potential, with franchise holders ranging from startups to nearly $100 million in revenue operations.

This business is ideal for a buyer seeking a high-quality, scalable operation with strong financials and a well-established presence in the region.

>> Contact Seller <<

5. Franchises Business in The Woodlands, United States:

This pet-related business, established in late 2020, has experienced rapid growth with minimal competition in the area. The company operates with a strong margin of over 70%, and the business is currently managed remotely, though there is potential for additional growth with a local owner involved in daily operations.

  • Location: The Woodlands
  • Asking Price: $4,100,000
  • Sales Revenue: $4,804,834
  • Profit: $1,243,710
  • Year Started: 2020
  • Employees: 20

Business Highlights:

  • High profitability with over 70% margins.
  • Minimal competition in the local market.
  • Well-established staff running day-to-day operations remotely.
  • Upside potential for a more hands-on owner to further grow the business.

Business Operation: 

This pet-related business is a great opportunity for someone looking to own a turnkey operation in a high-demand industry. The current business model is flexible for remote ownership, but a local owner-operator would have the chance to take the business to new heights by being more involved in daily activities.

Relocatable: 

The business is well-suited for its current location, but its model could potentially be replicated in other areas, offering flexibility for new ownership.

This is an exceptional opportunity to own a profitable and growing pet-related business in a thriving area.

>> Contact Seller <<

6. Home improvement services franchise:

This franchise business located in Columbus operates in the home improvement services industry. Backed by over 40 years of industry experience, this franchise offers a strong growth model, excellent cash flow, and a large, exclusive territory. With a focus on high margins and low inventory, it offers a turnkey solution for an owner-operator seeking growth opportunities.

  • Location: Columbus, United States
  • Asking Price: $5,200,000
  • Sales Revenue: $6,900,000
  • Profit: $1,200,000
  • Year Started: 2011
  • Employees: 31

Business Highlights:

  • Proven growth model with a significant backlog of in-house orders.
  • Large client database and a high percentage of repeat customers.
  • Strong marketing support with successful lead generation techniques.
  • Excellent cash flow with high gross margins.
  • Exclusive territory and established brand recognition.

Business Operation: 

This business offers an owner-operator a chance to step into a well-established and thriving market. The company has proven sales techniques, comprehensive marketing support, and a strong customer base, making it ideal for someone with a strong appetite for growth and success.

Expansion Potential: 

The established franchise model, combined with a growing market in Columbus, presents strong potential for continued growth. Ongoing training and marketing support are provided, ensuring the business can continue to attract new customers while maintaining a solid base of satisfied clients.

Reasons for Selling: 

The seller is motivated and looking for an owner-operator to take over and continue the business's growth trajectory. The franchise model is already validated by other franchise owners, ensuring a solid foundation for the next owner.

Relocatable: 

This franchise operates within a large exclusive territory in Columbus, but the business model is scalable and could be expanded further.

This is an incredible opportunity to own a high-margin, cash-flow business with proven growth potential in the home improvement industry.

>> Contact Seller <<

7. Restaurant business in Peoria, United States:

Blue Margaritas is a well-established franchise specializing in traditional Mexican cuisine, inspired by diverse regions of Mexico. With a varied menu that includes chips and salsa, steak fajitas, taco salads, and more, this restaurant offers an authentic Mexican dining experience for all palates. The restaurant is also known for its signature Blue Margaritas, made with a unique blend that has become a crowd favorite. This friendly, family-oriented environment has become a local staple in the Peoria area.

  • Location: Peoria, United States
  • Asking Price: $30,000
  • Sales Revenue: $1,041,365
  • Profit: $945,483
  • Year Started: 2015
  • Employees: 20

Business Highlights:

  • Menu: A diverse and authentic selection of Mexican dishes, drawing inspiration from the various regions of Mexico.
  • Signature Drink: The Blue Margarita, a unique blend that sets this restaurant apart.
  • Customer Experience: A family-friendly environment that has become a local favorite, offering a true taste of Mexico.

Business Operation:

  • Growth Potential: The restaurant's affordable asking price, combined with its solid revenue and high profit margins, makes it an ideal opportunity for potential buyers.
  • Location Benefits: Situated in Peoria, the business is well-positioned to continue attracting local customers, with opportunities for growth.

Reasons for Selling:

The current owners are offering this unique opportunity to potential buyers looking to expand their portfolio or enter the restaurant industry with an established brand.

Support & Training:

The owners are committed to ensuring a smooth transition and will provide the necessary support to the new buyer, including operational insights and staff management.

Relocatable:

The restaurant can potentially be expanded or replicated in other regions, given its scalable business model.

This franchise is ideal to acquire a highly profitable and well-loved Mexican restaurant franchise with strong cash flow and customer loyalty.

>> Contact Seller <<

Conclusion

As the U.S. economy experiences steady growth in 2024, the demand for recession-proof, profitable franchises continues to rise, offering significant investment opportunities. The “top 7 franchises” identified span diverse industries, including automotive services, home improvement, and the restaurant business, each demonstrating a well-established business model with high margins and scalability. Investors are drawn to these businesses because of their proven track records, simplicity in operations, and robust support systems, making them attractive options for both new and experienced franchise owners. The ability to generate consistent revenue and cash flow, even during economic downturns, positions these franchises as reliable investments.

In addition to their financial performance, these franchises provide comprehensive support and training to ensure a smooth transition for new owners. Each franchise offers potential for territorial expansion and scalability, with many boasting flexible models that allow relocation or entry into new markets. As the U.S. economy continues to grow at a steady pace, these franchises are positioned to capitalize on increased consumer spending and market stability, making them prime opportunities for investors seeking to secure long-term profitability and growth in a competitive market.


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