The Most Profitable Franchises of All-Time by Jonah Engler
Many franchises have had tremendous success over the last few decades, using a system of ruthless efficiency to take the marketplace by storm. While these businesses operate in different ways, they share similarities that have made them successful. Here are some of the most successful and profitable franchises of all-time, and what made them successful.
Subway
Who would think that making and selling simple sandwiches could turn into such big business? Subway has turned the art of sandwich making into a profitable franchise. This business has been successful mostly because of the simplicity of its model. An aggressive branding strategy has also helped to raise all franchise locations. With marketing campaigns like the "Five Dollar Footlong" and the "Jared" ad spots, Subway has aggressively spent on its brand.
McDonald's
While it would be easy to focus on McDonald's from a marketing and branding standpoint, this is probably not the best way to look at this company's success. McDonald's has made a lot of people rich because of its ruthless efficiency. Its systems, products, and processes are centralized and streamlined. When you go to one McDonald's or another, you're going to get the same menu, the same prices, and the same products. They've created a system that is very easy to run and execute.
Wyndham Hotels and Resorts
This hotel franchise is among the most profitable in the hospitality industry. It has had prolonged success because of its willingness to adapt. It was one of the first companies to provide different levels of hotels to suit the needs of family and business travelers of all budgets. Beyond that, these hotels have shown a dedication to integrating new technology into their systems.
Dunkin' Donuts
Dunkin', as it's colloquially known, has had success because of the low costs of its products and the high margins it brings to the table. In the food business, the margins are usually rather small. Dunkin' has been able to change this by focusing on foods that are high margin, including coffees and breads. They keep things simple, but their execution still brings success.
These franchises have demonstrated the ability to sustain themselves over the course of time. They've all done it a little bit differently, but they do have some things in common. For instance, these franchises all provide their franchise owners with good support and a system that can be implemented quickly and easily. They keep costs down and focus on a broad national branding strategy that works.
Jonah Engler is a full time stockbroker and finance expert from NYC.