Franchising 101

How to Identify Quick Breakeven Franchise Brands


For many of our clients, buying a franchise is a step toward living life on their own terms. It means an end to their corporate grind and the 9-5 rat race. 

If the idea of quitting your job has you doing a happy dance, we want to help you take the steps to get there. Easier said than done though, right? While many people want to leave their job, they need to find a way to replace that income and do so FAST. 

Of course, there is no magic business that guarantees you'll make back your investment and start turning a profit within a year. However, if you find the right franchise brand, you can get pretty damn close. Purchase the wrong brand, however, and you could find yourself buried, digging out of that mistake for years to come.

So how do you find those unicorn franchise brands to replace your income quickly? We're glad you asked.

how to identify a quick breakeven brand


Home Services

We're known at Sidekick for investing in killer "boring" brands. You know the kind, home service brands like roofing, plumbing, even mold remediation. We love a need-based business that offers simplicity, strength, and success.

Speaking to their simplicity, franchisees can expect to break even faster when they're able to open faster. Many service brands can be run from home, which means no expensive lease or extensive search to find the perfect building. This is HUGE for many of our Sidekick clients looking to ramp up quickly and replace their income.

Investing in a home service brand also means a simple, proven model with few employees. Any hiring manager knows the hunt for excellent employees takes time, money, and energy. You can say goodbye to a quick breakeven if you're taking weeks to hire and train your team, and shelling out significant payroll expenses each month. If your franchise can launch with 2-3 employees, no prior experience is required, and efficient training programs already exist, you can be up and running in as little as 60 days with a home service brand.

Bonus selling point for these "boring" brands? These need-based service brands are often recession-resistant, many with proven success during past recessions. Check out our blog on how to identify these recession-resistant brands.

In summary, home service franchises offer:

  • Simple Concept 
  • Work From Home - No Lease or Brick and Mortar
  • Quick Open with Few Employees
  • Recession-Resistant
Low Initial Investment

This may seem obvious, but we've seen many clients interested in established franchise brands that can cost millions to open, going years without recouping their investment. There are great franchise brands out there with initial investments (or the item 7 in the FDD) under $200,000 that have the potential to see a return within a year! Check out a few examples of these brands in our portfolio: 

Low Overhead 

Replacing your income quickly becomes increasingly difficult when your money is tied up in inventory, rent, labor, and all the things it takes to run most businesses. Finding one of those unicorn franchise brands with low overhead, a simple model, high margins, and a quick breakeven may seem impossible, but turns out they do exist. Click the links below to check out some of our favorite low-overhead brands:

Great customer acquisition

Customer acquisition can make or break a franchise, so it's important to identify those brands that have it figured out. Not only does this lead to a faster breakeven, but franchisees can focus their efforts on other parts of their new business, knowing they have a strong system in place to acquire customers. Check out our post where we break down our favorite brands with strong customer acquisition.

Easy to Scale

When we look for a brand to add to the Sidekick portfolio, scalability is a major factor. Our clients want the ability to easily grow as they build their business, which allows for a faster breakeven. What makes a franchise highly scalable? Simple model, few employees, home-based, and low overhead are just a few things we look for in a great franchise concept. An outstanding example of a highly scalable franchise with a simple model? Check out EverLine Coatings and Services

Healthy Margins

This one seems like a no-brainer, but it's important to understand the full financial picture before investing in a franchise. That means diving into a brand's FDD (Franchise Disclosure Document) and reviewing items 7 and 19. How many franchisees are represented, and are all their financials used to determine an average net profit margin? Are only corporate locations included in the item 19? Not to worry though, you don't have to be an expert in FDD review. Connect with a Sidekick Franchise Advisor to help walk you through it (at no cost to you) and connect you with our trusted legal resources.

With over 4,000 franchise concepts out there, finding these quick breakeven brands may feel overwhelming. The good news? We're here to be your Sidekick. Schedule a free 10-minute call with our expert franchise advisors to explore our Certified Brands.

A 10-minute call could change the course of your life, so what are you waiting for?



Posted by Paige McNaney
LinkedIn Website

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