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Invest in Yourself With a Financial Services Franchise Start a business with the potential to help others achieve long-term financial and retirement goals.

By Jeff Cheatham

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Opinions expressed by Entrepreneur contributors are their own.

Are you a numbers person? Do you get energized by looking at financial spreadsheets, various prospectus, IPOs, IRAs, and tax-sheltered annuity offers? If you have an accounting state of mind, or are just an individual who is left-brain dominant, you might be a perfect candidate to explore franchises in the financial services industry. It's one of the few industries that caters to two different target audiences: both B2B and B2C customers. You don't have to be a retired financial planner or have a Series 7 license to own and operate a financial services franchise. Still, having some basic understanding of investment fundamentals and the tax code can provide you with a leg up in launching your own business in this category. Let's review some specifics about the financial services franchising marketplace.

Related: AI Will Fuel the Financial-Services Revolution. Here's What to Know.

Marketplace drivers

The millennial generation is one of the most dominant demographics, and the oldest population of this group is approaching their 40s — a time to get serious about financial planning and retirement accounts. Also, the pandemic may have complicated people's finances, and we're still officially in a recovery mode, but there's a growing interest and demand for financial advising. According to the Bureau of Labor Statistics, more than 275,000 individuals work in the financial planning sector, an industry predicted to grow 5% by 2030. Managing personal and commercial portfolios is a business category on the rise, as it's estimated that Generation X and millennials have a combined $30 trillion in investable assets. Additionally, more than half — $18 trillion — will be transferred from one generation to the next over the next few decades. A recent survey from PwC found that nearly 50% of heirs change financial advisors upon an intergenerational transfer of wealth. Lastly, there's this additional factoid to consider — baby boomers are retiring at an approximate rate of 10,000 per day.

Franchises by type and by opportunity

Financial services franchises are more than just financial planning and retirement advice. There are hundreds of concepts — accounting, insurance, real estate, billing, payroll, banking, asset management, consulting, and mortgage-related business opportunities. But that's not all. There are even check-cashing, payday loan, and business consulting business concepts up for review. Some business models are available for under $25,000, but there are options at every price point. All have comprehensive operations manuals to follow to help you onboard clients, conduct reviews, and the prepare various forms and paperwork. Most of the financial services franchise opportunities can be owned and operated from the home, making a brick-and-mortar storefront unnecessary — and possibly giving you a nifty tax deduction in the process.

Related: The 5 Best Tax and Financial Franchises You Can Open This Year

A few brand names that made the list

Among the financial services franchise concepts, Goosehead Insurance made an appearance in the top 100 of the Franchise 500, coming in at No. 54 overall. This business opportunity is in a rapid growth mode. They're currently at just over 1,000 total units but noted an increase of 214% over the past three years alone. Lendio is another up-and-coming franchise concept — utilizing a business model designed to make small business lending easier and more efficient. Loan applicants simply fill out a brief form and are then provided with a list of real offers from a full marketplace of lenders (75+). As this brand approaches 100 locations (a +123% gain in the last three years), they're fulfilling their promise to "Fuel the American Dream." Other household brand names on the financial services franchise list include H&R Block, Jackson Hewitt, and Liberty Tax Service, highlighting a robust market for local-based tax preparation services. For a look at the rest of Entrepreneur's 2022 Top Financial Services Franchises, be sure to follow this link.

Related: Entrepreneur's 2022 Top Financial Services Franchises
Jeff Cheatham

Founder and CEO of Creative Content

Jeff Cheatham is the founder and CEO of Creative Content, a full-service copywriting and public relations firm. He's based in Dallas and works with multiple B2B clients and over a dozen franchise brands to develop proprietary content campaigns for lead generation and sales development programs.


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