5 Ways to Find the Best Franchises to Invest in

Diversify your portfolio by identifying the best franchises to invest in 

As an investor, diversifying your portfolio lessens your financial risk. Franchising is a great way to diversify. Whether you already own a franchise or are thinking of investing in franchising, here are five ideas that you can use to find the best franchises to invest in.

1. Buy in to different industries

Consider investing in different industries. If you have a stake in only one type of concept, then your investment portfolio can take a big hit if demand or supply shifts. Diversification softens that blow, and if one brand loses some of its profitability, others may be gaining.

For example, if you own a restaurant franchise that’s currently struggling, your cruise planning franchise may be in the middle of a surge in business. In this case, the risk to your portfolio is lessened by its diversity.

2. Own complementary businesses

Another strategy is to acquire businesses that offer services or products somewhat similar to a business you already own. 

For instance, if you have an auto service business, such as a body shop, you might want to buy an oil change business like SpeeDee Oil Change & Auto Service®. Though the services offered are different, both operate in the aftermarket auto industry, creating opportunities for crossover sales and cross-promotion. 

As another benefit, the different businesses may have some operations in common, such as payroll or scheduling, that you’ve already mastered. Consider which complementary businesses would make the best franchises to invest in.

Also, some of your contacts may have connections in the complementary business that you can leverage.

3. Think about your existing territories

If you prefer a different method of diversifying, consider your business location. Where is your business? Could you open a different business within the same area? 

As an example, if you own a SpeeDee or Grease Monkey, you might open a quick-service restaurant or a fitness center nearby. A customer at your shop could drop off their car for service, then go have lunch or go to the gym. 

Or it could be the other way around. A customer may stop at a restaurant for lunch, then decide to get a quick oil change. The increased convenience for customers can help build business. People are more likely to use businesses that are close to places they already go.

4. Study your local market

Similarly, think about where you live and what segment of consumers there are underserved. Maybe you live somewhere with too many taco and pizza places but not enough coffee shops, or not enough oil change places.

When you’ve identified a gap in your local market, look for franchises that would fill that gap. Once you have a list of likely franchises, narrow your search to those that want to expand in your area. 

Most franchises list their available territories on their websites, making the information easy to find.

5. Study a different market

On the other hand, you might want to expand outside your local market. Do you want to increase your reach with your current franchise, or are you interested in a different industry that’s needed in another area?

The same steps apply as No. 4. Do your research to find the gap in the market, find the appropriate franchises, and investigate those that are looking to expand in that market.

Why SpeeDee

The oil change business is a massive industry with reliable demand. There are about 280 million vehicles on the road in the U.S., making the aftermarket automotive segment resistant to economic downturns. As a SpeeDee owner, you tap into a business that’s always in demand.

We have a proven business model that has powered growth for more than four decades, with highly experienced leadership and development teams who will work with you to help boost revenue and ROI.

Additional resources

Best Franchises to Own
Find the Right Location
Looking Ahead with SpeeDee

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SpeeDee is one of the best franchises to invest in. To learn more, visit Why SpeeDee? To start a conversation with a member of our team, click here.