If you’re interested in becoming a franchisee, it’s best to know which franchises are the most profitable. After all, you’ll need to make a sizable investment up front, so finding a franchise that is likely to provide an ROI is essential.

In this article, we’ll discuss some of the most profitable franchises, as well as important tips you should know before pursuing a future as a franchisee.

Key Takeaways

• Some of the most profitable franchises include McDonald’s, Dunkin’, Taco Bell, Jersey Mike’s Subs, UPS, The Maids, Anytime Fitness, Pearle Vision, Supercuts, and Ace Hardware.
• In general, some of the best industries to invest in include fast food restaurants, fitness centers, cleaning services, laundromats, and auto repair shops.
• Need financing to start your business? Secure an SBA loan to start your business with Llama Loan today.

Most Profitable Franchises To Invest In

1. McDonald’s

McDonald’s serves 69 million people every day across 118 countries and territories, so it should come as no surprise that McDonald’s is one of the most sought-after franchises in the world. In addition, a franchisee can earn $150,000-$160,000 annually depending on their restaurant’s size and location.

But to become a franchisee, you’ll have to meet McDonald’s requirements. Specifically, you’ll have to show that you can access at least $500,000 in non-borrowed personal resources, and a down payment of 25% or more will be required to secure your location. Also, you’ll have to pay $45,000 as an initial franchise fee.

In total, you may have to invest as much as $2.2 million to get your McDonald’s up and running. But if you can generate $3,505,000 in annual sales, the average for a McDonald’s franchise, it shouldn’t be long before your investment starts paying off.

Of course, there are downsides to consider before becoming a McDonald’s franchisee. For one, beyond day-to-day management decisions, you won’t have a lot of say in how your location operates. Also, there are many costs that go along with running a McDonald’s, including licensing fees, royalties, marketing fees, and recruitment costs.

2. Dunkin’

Like McDonald’s, the Dunkin’ brand is well-known throughout the U.S., especially in the Northeast. But becoming a Dunkin’ franchisee requires a hefty upfront investment. Depending on where you are, you could need $250,000 in non-borrowed personal resources and a net worth of $500,000 to secure your location.

Regarding the franchise fee, how much you’ll have to pay is determined by a few factors, but the most important is the state in which you’re looking to set up shop. Basically, if you want to open a Dunkin’ in a state where operating costs, taxes, etc. are higher, expect a franchise fee of about $90,000. In cheaper states, a franchise fee closer to $40,000 is more likely.

Also, your franchise fee could be reduced if Dunkin’ classifies you as a preferred investor. These are investors who intend to open multiple locations, investors who are looking to set up shop in developing areas, and qualified veterans.

In total, you may have to invest $526,000-$1.8 million to get a Dunkin’ location up and running.

3. Taco Bell

Taco Bell is another fast-food giant that serves tens of millions of customers across more than two dozen countries each week, and they’ve earned the top spot on Entrepreneur Magazine’s Franchise 500 List for 2024.

It goes without saying that becoming a Taco Bell franchisee could prove quite lucrative, but to get there you’ll need about $750,000 in non-borrowed personal resources. Also, you’ll need to pay $25,000-$50,000 as a franchising fee.

Of course, the total cost of getting a Taco Bell location up and running depends on your location, the size of the store, and other factors, but you can expect to put up $530,000-$3 million as an initial investment.

And once your store is operational, you’ll have to pay 5.5% of store sales as a royalty, and 4.25% of revenue will be used to pay for marketing and advertising.

4. Jersey Mike’s Subs

For many years, Subway was the king of the sub shop franchises, but these days that title belongs to Jersey Mike’s. The average Jersey Mike’s generates over $1 million in revenue each year, and the average franchisee takes home around $73,000 in annual income from running one of these stores.

But to become a Jersey Mike’s franchisee, you’ll need at least $100,000 in non-borrowed personal resources, and you’ll have to pay an initial franchise fee of $18,500.

In total, it can cost anywhere from $209,000 to $1,347,000 to get a Jersey Mike’s up and running, but exactly how much you’ll need to invest depends on your location, the size of the store, and what’s required to get operations going.

5. UPS Store

If you want to become a franchisee, but you don’t have the capital to get started in the fast-food industry, consider UPS. For the past three years, UPS has been in the top five on Entrepreneur Magazine’s Franchise 500 List, mainly because they have a fantastic reputation and they’re known for training and supporting new franchisees exceptionally well.

However, you will need $75,000 in non-borrowed personal resources to qualify, and you’ll have to pay $9,950-$29,950 as an initial franchise fee. The good news is UPS offers programs and incentives to reduce the cost of getting started, and they’ve partnered with Guidant Financial so qualified investors can easily get their hands on franchise financing.

Also, if you’re a qualified veteran or someone who’s looking to set up shop in a rural area, you may not have to spend as much to become a franchisee. In total, expect to pay anywhere from $138,000-$470,000 to become part of the UPS family.

6. The Maids

The Maids is a forty-year-old franchise with a robust support system where you can make anywhere from $50,000 to $150,000 as a franchisee. The average Maid franchise generates $1.1 million in annual revenue, but some generate 3-6 times that.

And whereas other cleaning service franchises require a lot of upfront capital, becoming a Maids franchisee is relatively cheap. You’ll need $100,000 in non-borrowed personal resources, and your net worth must be at least $250,000. The initial franchise fee will be $12,500-$22,400, so you’ll pay anywhere from $64,000-$154,000 to get your business up and running.

7. Anytime Fitness

Becoming an Anytime Fitness franchisee may be perfect for you if you love fitness. Even better, you can earn $80,000 or more annually while helping others reach their fitness goals. Sure, it’s true that there are so many fitness chains competing for the same people these days, but Anytime Fitness is unique in that you can access their facilities 24 hours a day, 7 days a week, 365 days a year.

But to get your foot in the door, you’ll need a net worth of at least $500,000 and $100,000 in cash. The initial franchise fee will be $25,000-$42,500 depending on your location.

In total, you’ll need to invest between $389,000-$970,000 to get things up and running. But once you do, you won’t need to pay a percentage of sales as a royalty which is a nice bonus.

8. Pearle Vision

The name Pearle Vision is synonymous with quality eye care like Apple is synonymous with innovative technology and they can be one of the more profitable franchises worth exploring.

However, before you can start selling top-tier glasses and sunglasses, you’ll need to pay an initial franchise fee of $20,000.

Additionally, you’ll have to invest $406,000-$640,000 up front. Of the money you put up, $122,000-$230,000 will be spent on getting operations going, $24,000-$41,000 will be spent on equipment, $15,000 will cover initial marketing fees, and formulation costs can be anywhere from $224,000 to $332,000.

9. Supercuts

Supercuts has been a well-known salon franchise for more than 40 years, and today there are over 2,400 Supercuts locations throughout the US. On average, Supercuts franchisees make over $60,000-$80,000 annually, but how much you pull in depends on a range of factors.

To become a Supercuts franchisee, you’ll need a net worth of at least $500,000 and $150,000 in non-borrowed personal resources. Additionally, you’ll have to pay an initial franchise fee of $39,500. All told, you may have to invest $151,000-$321,000 to get a Supercuts off the ground.

10. Ace Hardware

According to Glassdoor, Ace Hardware franchisees can make $72,000-$133,000 annually – making them on of the more profitable businesses to start. Plus, you’ll have options if you want to become an Ace Hardware franchisee:

• Open a new location.
• Convert an existing hardware store into an Ace Hardware.

With the latter option, you won’t need to pay the $5,000 initial finance fee that is also waived if you’re a qualified veteran. Additionally, you’ll need a net worth of at least $400,000 as well as non-borrowed personal resources worth $250,000 or more.

Finally, one of the main reasons why Ace Hardware franchisees do so well is they don’t have to pay a monthly royalty which can provide a huge boost to your bottom line.

Best Types of Profitable Franchises

Fast Food Restaurants

Fast food franchises are some of the most successful because there’s always going to be demand for affordable fast food. Even if you’re operating in an area where several well-known fast food joints have a presence, chances are you’ll still be able to do well, especially if the franchise you’re representing has recognizable products that are always in demand.

Fitness Centers

Fitness franchises also do well, mainly because the vast majority of people prefer visiting a gym over working out at home.

If you can keep your fitness center clean and full of modern equipment, you should be able to grow a loyal customer base.

Also, knowing your target demographic is essential. Will your gym cater to serious athletes, bodybuilders, and the like, or will it be a more casual environment for those who are looking to exercise in their free time?

Cleaning Services

Home and business owners are always looking for competent cleaning services, which is why cleaning service franchises tend to be successful. Also, cleaning services are usually low-cost investments when compared to other franchises, yet their potential to generate serious income is high.

In this business, going above and beyond for the clients is everything. If you can do this consistently, your cleaning business should have no trouble standing out from the rest.

Laundromats

Opening an affordable laundromat in a densely populated area is a great way to add tens of thousands of dollars to your income. Like cleaning services, laundromats generally don’t require a hefty investment up front, and they can start generating profit soon after operations get going.

The key to success in this business is a combination of location and having state-of-the-art equipment. If you have the best washers and dryers, and you can keep your business tidy day in and day out, you should do well as a laundromat franchisee.

Auto Repair Shops

Auto repair shop franchises do well because they’re able to hire a team of technicians and always have access to the parts and systems vehicle owners need. By spending a fair amount on marketing and advertising, they’re able to get a leg up over mom-and-pop auto repair businesses.

Lastly, if your brand is synonymous with a particular service—like Valvoline’s instant oil change—you should have no trouble growing a devoted customer base.

What to Consider Before Franchising

Franchises’ Track Records

Identifying which franchises can boast a track record of success should be your first step. Consider franchises that have been operating for decades, and think of reasons why they’ve been able to stay in power.

As an example, look at McDonald’s. They essentially wrote the book on how to grow a successful fast-food franchise, and now their products are not only sought throughout the US but throughout the world. Their brand is recognizable, their prices are reasonable, and their commitment to quality hasn’t faulted since the company’s inception.

Basically, if you can follow a franchise’s time-tested model and implement what’s made others successful, you’re sure to generate substantial revenue and profit, even if there’s fierce competition in your area.

Costs

There are numerous costs associated with becoming a franchisee, and you need to be aware of these before taking the plunge.

First, there’s the initial franchise fee. Additionally, you’ll have to pay for real estate development, equipment, inventory, training, insurance, marketing, advertising, and security. Most of these expenses will have to be covered up front to get the business up and running. If you need financing to ensure operations get going, the franchise may be able to help. If not, we offer tons of business financing options to help!

In any case, you’ll often have to spend $100,000-$3 million before you can start generating revenue and profit.

Competition

Competition is another important factor to consider before you start on the path toward becoming a franchisee. If numerous businesses are already offering the products and/or services you’re looking to provide, you may have a hard time generating revenue and turning a profit.

However, if your franchise doesn’t have a footprint in the area where you’re looking to set up shop, you may be able to outdo the competition right away, especially if the brand you’re representing is widely recognized as being superior.

Of course, a franchise won’t green-light your application if they believe your store can’t penetrate the local market, so you won’t have to determine the extent of competition on your own.

Lifestyle

You’ll also need to consider how becoming a franchisee will impact your lifestyle. For instance, you may have to commit 50-60 hours a week, in the first month or two, to getting the business up and running. Also, there may be times when you have to step in and manage operations in a hands-on way to ensure your business maintain’s a solid reputation and franchise standards.

If you’re looking to be a more passive owner, consider franchises that have a relatively straightforward business model. Sure, you won’t have to handle day-to-day operations, but you’ll need to put competent people in charge to ensure things run smoothly.

Final Thoughts

If making a nice profit year after year is your number-one priority, consider becoming a franchisee of McDonald’s, Dunkin’, Taco Bell, Jersey Mike’s Subs, UPS, The Maids, Anytime Fitness, Pearle Vision, Supercuts, or Ace Hardware.

None of these names sound interesting? Then look at the fast-food, fitness, cleaning, laundry, and auto repair industries, as there are always profitable opportunities in these industries.

If you’re looking for financing to start open a franchise, get in touch with us today to secure the best rates and terms available!