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5 Examples of franchise businesses for recurring income

Learn about franchise businesses that can generate repeat customers and recurring revenue!

As the franchise industry is very broad and has many options to choose from, it is very important to ask yourself what your main objectives are (financial, lifestyle, etc) in order to find out what are the most appropriate options for you. A franchise consultant can be a great source to help you understand what the different options are and which ones apply better to you and your goals. Consultants are experts in the franchise industry, and trained by the franchises on each business models, they are also continuously updated on what’s going on in the industry. They assist the franchisors with finding qualified candidates to become part of their franchises, and assist aspiring investors with finding the right businesses for them…in summary, they can be seen as match makers in the business world.

When it comes to ideal business models, it really varies according to who is searching for options. One aspect to think about is that there are businesses in the market where the amount of revenue you can generate per month is more unpredictable (for example: if you have a retail store, you may have variation month to month according to store traffic and number of units sold), while others have more predictability (when you have ongoing repeat customers that pay a monthly fee to you, for example). Both options can be great investments, but on this article we are focusing on examples of business capable of locking down a recurring revenue to you.

Typically businesses that can enable a recurring revenue stream to you are businesses where you have your new customer lock on a monthly or yearly contract with you, enabling you to develop a repeat customer base! Customers will be paying you for services on a monthly bases. In addition, some businesses with B2B models are also great sources of repeat customers that help you achieve a consistent revenue stream, as some models rely on companies that will be constantly coming back to you for extra services, as they have a continuous need for your services.

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The nice aspects about businesses with recurring revenue models are the predictability of income to be received every month, with the possibility of continuously growing revenue as you lock on new customers/accounts. In addition, for many businesses you won’t need a huge number of customers to be able to make a significant revenue per year (for some of these businesses, you could achieve a 7-digit gross revenue with as few as 30-40 customers). That helps reduce the burden on sales and marketing efforts to be successful.

In order to be successful with repeat customer businesses, you have to be good at networking/selling, in order to lock down and establishing good relationships with your initial customers, and at delivering high and consistent quality products/services, to keep your customers loyal. The potential is really high!

Here are some example of repeat customer businesses you could consider:

sign-company

Sign Companies: sign companies are responsible for manufacturing custom signage for businesses, including internal and external signage. For example, the logo signs that are attached outside of buildings, banners of many different sizes, wall adhesive signs, vehicle wraps, and much, much more! There are sign companies solely focused on B2B (instead of B2C) that develop custom signs according to each customer needs. This type of business model ends up with about 75%-80% of repeat customers, as companies typically need to be constantly creating new signs (for example seasonal signs, or updating brand, etc).

business-janitorial

Commercial Cleaning Companies: cleaning companies, especially commercial ones, are also a great business model for repeat customers. Typically you lock on a yearly contract with your new client, set on a specific cleaning frequency (daily, weekly, monthly, etc). As long as you keep the quality high and consistent, at a fair price, you should have loyal customers for a long time.

Real Estate

Property Management Companies: these companies serve owners of rental properties, as well as associations (HOA) and can serve both residential and commercial accounts. The agreements which typically are locked for one or more years, involve finding and screening new tenants, coordinating maintenance work, collecting rent, and issuing financial reports. In general a property management fee is charged per managed door, and other profit centers include charges around services such as maintenance.

digital-marketing

Marketing/Digital Marketing companies: companies that focus on developing promotional marketing programs for other businesses are in general great sources of repeat customers. For example, a company that focus on creating promotional coupons and sending them out to neighborhood houses, to attract new customers for their client businesses. Another good example, companies that provide digital marketing services, such as website creating, SEO optimization, social media content, etc. In general these companies lock on a yearly or multi-year agreement with their client, generating a robust source of repeat revenue.

membership

Membership based business models: There are many options if businesses where clients signs up for a membership fee. Some examples are: gyms, spas and beauty services salons (eg. waxing salons). Customers typically are incentivized to sign up for membership as the price per month is much cheaper for members, as compared to individual purchases. In addition you can incentivize customers to sign-up for membership by providing them with some perks (such as VIP access to some services, discounts and loyalty programs).

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About franchisewizards (35 Articles)

Franchise Wizards is a Franchise Consulting company that belongs to a group of executives with over 25 years of combined experience in the Franchising Industry. Our mission is to help you achieve your dream of business ownership through franchising!

Our industry experts can help you in many ways:

1) Leverage our deep expertise in the Franchising industry to help you select the right franchise for your investment, based on your background, goals and budget.
2) Receive coaching during the entire franchise selection and investigation process. We will partner with you every step of the way, so you can make most of your time, and make the best decision.
3) Get preferred access to the Franchise Directors and Founders, as we are connected directly to them.
4) Get access to our network of professionals that will help you in your new venture, including Funding Partners specialized in small business funding, CPAs, Attorneys, Business Coaches, and more!

Working with us has no cost to you! We work with nearly 500 franchises and are paid by the franchisors we work with, not you! We help them find qualified candidates that would be great fit for their franchise networks, at the same time we help you find the best franchise for your investment.

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