Are Franchises Good Investments? 5 Reasons to Say Yes!

If economic headwinds and salary constraints are putting a damper on your traditional retirement account, opening a business can be a strategic alternative. Franchising offers a path to entrepreneurial success and is gaining traction among professionals who seek more control over their financial future. But, are franchises good investments? Let’s explore the advantages and profitability of the franchise business model.

The Retirement Savings Dilemma

For many who are toiling away in corporate America, the reality of retirement savings is sobering. A survey conducted by GOBankingRates revealed that 53% of Americans have less than $10,000 saved for retirement, with a mere 6% saving more than $100,001.

To diversify their income and bolster their retirement savings, a record number of Americans are turning to business ownership. Individual Americans filed 2.7 million new business applications during the first six months of 2023, up 5% from the same time last year, and a 52% jump from 2019. And franchising continues to drive new business growth. The franchise industry is on track to add 15,000 units in 2023, and franchise employment is on the rise, according to the International Franchise Association. Growing at 3%, total franchise employment is expected to reach 8.7 million people this year.

Opening a business offers an additional income stream and potential long-term benefits that can significantly increase retirement savings. Here are some key advantages:

• A successful business can generate substantial income, far exceeding what one might save through traditional retirement plans.
• A business is an asset that can appreciate over time. Upon retirement, selling the business or passing it on can provide a significant financial boost.
• Business owners often have access to tax deductions and credits not available to employees, allowing for more efficient wealth accumulation.
• Entrepreneurs have the freedom to reinvest profits back into their business or other ventures, potentially yielding higher returns than traditional retirement accounts.

Are Franchises Good Investments?

Investing in a franchise can be a smart way to make your entrepreneurial dreams come true, as it combines the independence of running your own business with the support of an established brand. To open a franchise, you’ll need to find one with an initial investment range in your budget, and you’ll have to pay ongoing royalties and marketing fees. As part of the deal, you’ll get a turnkey business with a proven track record.

Here are five of the top reasons to say “yes” to franchising:

1. Brand recognition: Franchises come with the advantage of brand recognition, which can help attract customers.
2. Training and support: Most franchises offer comprehensive training and ongoing support to help you navigate the business landscape successfully.
3. Proven business model: Franchises provide a proven business model, reducing the uncertainty associated with starting a new business from scratch.
4. Marketing and operational systems: You get access to established marketing strategies and operational systems, which can be a steep learning curve for independent business owners.
5. Network and community: Being part of a franchise means you're part of a larger community, offering networking opportunities and shared learning experiences.

Kitchen Tune-Up: A Franchise That Stands Out

A franchise can be a good investment, especially if you choose one within a growing industry. Kitchen Tune-Up is a top franchise investment, and we’ve carved a niche in the home improvement sector, offering services that are in high demand. We offer a path to financial independence, enabling you to have the opportunity to retire in style.

We’re a remodeling franchise with a low initial investment and a potential for high return. The initial investment for a Kitchen Tune-Up location is $129,930 to $188,850, which includes a franchise fee of $19,950 and a territory fee of $60,000. To help make our franchise attainable, we offer $48,000 of in-house financing to qualified candidates.

Our comprehensive training program ensures that even people who are new to the home remodeling industry can start on a strong footing. Plus, our focus on customer service excellence and innovative home improvement solutions provides a competitive edge. As a Kitchen Tune-Up franchise owner, you’ll offer consumers five different ways to update their kitchen within various investment levels from cabinet refreshing to an entire remodel. The average sale amount is $11,398, with an average gross profit of 54%.*

Connect with Kitchen Tune-Up

If you’re ready to unlock your entrepreneurial potential and secure your financial future, inquire now to learn more about partnering with Kitchen Tune-Up to launch a business.

*This is a historical representation of what some of Kitchen Tune-Up franchised agencies earned, as described further in Item 19 of the FDD.