The Franchise 50 Index and How to Beat the Market (consistently)
Outperform the Market by Investing in Small Business & Franchises
It's pretty hard to beat the S&P 500 Index. Since the Vanguard Group popularized index investment in the 1970s, passive index funds have been beating actively managed funds year in and year out. In this time, many index funds have become popular and can be found representing specific markets, regions, industries, etc.
The Rosenberg Center Franchise 50 Index
In 2002, The University of New Hampshire created an index following the franchising industry called the Rosenberg Center Franchise 50 Index. Here's how they explain on their website what they've done :
"The Rosenberg Center Franchise 50 Index, first developed in 2002 by the University of New Hampshire’s Rosenberg International Franchise Center, is the first stock index that tracks the financial market performance of the US franchising sector. It is a stock portfolio of 50 US public franchise companies that are representative of the US business format franchising sector. The index is updated on a quarterly basis."
That Franchise 50 Index recently outperformed the S&P 500 Index for the third quarter of the 2017 fiscal year, according to a press release from the Rosenberg International Franchise Center at UNH.
Don't get us wrong: we're not recommending any investment in this fund. What's interesting to see is the growth of the franchising industry compared to the leading companies in the market at large (see chart below):
Investing in a Franchise - The Thought Process:
Franchising is growing because franchise models work. They work by spreading good ideas and defending budding entrepreneurs from bad ideas. Franchisees know that a bad idea can crush a business just as much as a proven concept can be the beginning of a million-dollar money machine.
Our Story: Why Franchise?
As of now, there are about 3800 franchises in the United States. For the prospective franchisee, that's a lot of options! How do you decide? Well, every thought process is different, but let's evaluate the one that got us into maid service.
The first decision was to franchise, and it's pretty obvious why we went that direction. The second choice is the industry. Food and beverage is as exciting as it is costly and time-consuming. Furthermore, when running a business comes second in priority to having a job with family-friendly hours, food and beverage is out.
Fitness has potential, but it's highly susceptible to fads, and we want something that's going to stand the test of time.
What Service to Provide?
Service, ahhh, the land of work that people don't want to do. There are acres of diamonds in doing what other people dislike doing themselves.
Cleaning is up there, maybe at the top of the list of things people don't want to do. Kids are honest people, and they routinely express their disdain for cleaning up.
And to Whom?
So, what are we cleaning? Well, commercial leads to odd, late hours and again, if having a family is a priority, we're going to shoot for daytime hours. Residential maid service does not include weekends, nor late nights, nor holidays. Reason being, people don't want us in their homes at that time!
So What Franchise Should You Invest In?
Obviously, it's your call but take it from us, the residential maid service industry is the absolute best industry to get involved with. For a more direct answer to that last one, why You've Got Maids®? We've got answers. Give us a call or click the below blue button:
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About You've Got Maids®
You've Got Maids® was carefully created to mature into a coast to coast house cleaning franchise. The founders got in to do the dirty work, so they can teach their Franchise Partners how to run successful businesses. If you think you would like to join a franchise, that is more like a family, then You've Got Maids® might be right for you. Learn more about this brand on the company's "franchise opportunity" pages.
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