Most Profitable Franchises

FBR analyzed 385 leading franchise brands representing nearly 38,000 franchise owners to identify the Most Profitable Franchise Opportunities. Franchise owners were asked 33 benchmark questions about their experience and satisfaction regarding critical areas of their franchise systems, including leadership, financial opportunity, training, marketing support, operational support, and franchise culture. 

In addition to ranking above the benchmark for franchisee satisfaction, criteria for the Most Profitable Franchises List also considered overall investment level and average owner incomes. All brands on the list have at least 25% of their franchise owners earning annual incomes of $150,000 or higher. 

Key findings from Franchise Business Review’s research include:

  • The average annual income of franchise owners is $102,910
  • The average annual income of franchise owners beyond the first two years (startup period) is $115,688
  • The average annual income of franchise owners who own 2-4 franchise units is $142,638
  • The average annual income of franchise owners who own 5+ units is $214,418

The data also shows that franchisees from the 50 Most Profitable Franchise brands rate their satisfaction with their overall financial performance 19% higher than brands not on the list, and 9 out of 10 (90%) would “Recommend their franchise to others.”

“Overall, franchisee income numbers are down slightly, by five percent from last year,” said Eric Stites, founder and CEO of Franchise Business Review, “Which is not surprising given inflation and labor increases. However, larger, multi-unit franchises are fairing better this year, with reported incomes up by about five percent. It’s important to remember the income franchise owners can earn over time as they build equity in their businesses—to look at the whole investment and the long-term value of a business. Much of the wealth that business owners ultimately realize comes from long-term equity, which they cash out when they sell the business.”

 

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How To Find and Compare the Most Profitable Franchises

If you’re interested in buying a franchise, of course you’d like to invest in one of the most profitable franchises available within your budget. At the end of the day, we all want to invest in a franchise that is destined for success. Launching a new franchise requires not only a significant investment of your time and resources, but also your finances. That’s why you’ll want to invest effort into researching your best fit and most profitable franchise options. By understanding the factors that will dictate your success and learning how to compare the most profitable franchises, you will be able to make the best decision for your investment portfolio. FBR’s list of Most Profitable Franchises is a great place to conduct your research. These franchises rank highest in franchisee satisfaction and they’re deemed to be most likely to be profitable for the long term.

Investing in one of the most-profitable franchises

The amount of revenue that an individual location generates is not the sole determining factor of a franchise’s long-term success. There are actually many factors that you should consider as you look into the most profitable franchises available to you, such as:

  • The number of locations that a franchise has around the country or the world. Franchises with more locations nationally or globally are more likely to offer higher profits.
  • The amount of support that franchisees receive. With greater support — such as access to brand technology or marketing resources — you will be able to focus your efforts more heavily on your bottom line.
  • The competition in the local area. Choosing a franchise with minimal competition in the local area will bolster your business.
  • The franchise’s business sector and the services that it provides. Many people are surprised by the franchising opportunities in different sectors, such as real estate, senior care and automotive. Franchising extends well beyond the fast food industry, and there are many profitable opportunities out there across a variety of sectors.

Better Homes and Gardens Real Estate is considered to be one of the most profitable franchises, largely because this brand offers relatively low start-up fees. In addition, the model of this franchise allows you to grow your team of real estate agents in a way that puts you in control over your profits. Other franchises offer a much more limited scope, which can restrict your ability to increase your profits year after year.

Franchisee Satisfaction Ratings: What to Look For

As you are trying to determine which is the most profitable franchise, it helps to consider the views and perspectives of existing franchisees. Franchisee satisfaction ratings will provide you with insight not only into the financial success of the brand, but also the support that the franchisee receives and the overall experience they have enjoyed while operating a location.

Christian Brothers Automotive, for example, is a franchise that is known for its extremely high franchisee satisfaction ratings. This automotive franchise is more than just a business that offers repairs — it also focuses on preventative maintenance, which helps it stand apart from other local mechanics in your area. Its franchisees feel that their core values are very much in line with the values of the brand itself, which allows them to take pride in the work they do each day. In addition, they feel that they receive the support that they need from the brand and that the overall franchise structure is profitable.

The Most Profitable Franchise Sectors

The sector that you focus on for your franchise research may influence your profit levels. There are some sectors that are more profitable than others, so it’s important to focus on those that are in demand.

For instance, the travel and leisure sector is on the rise, as more people seek to enjoy experiences that they were not able to participate in over the last several years. Freedom Boat Club is a travel franchise that allows members to reserve and utilize a boat on demand, and it is poised to become one of the most profitable franchises available.

On the other end of the spectrum, the employment assistance sector is also a worthwhile opportunity to consider. There are many people seeking jobs right now, and franchises such as Express Employment Professionals are poised for success.

Ultimately, you should focus your search on sectors that will not only offer you generous profits but also align with your personal interests and professional expertise.

Choosing the Most Profitable Franchises for Your Portfolio

One of the best ways to strengthen your investment portfolio is to select a profitable franchise from a different sector. For example, Any Lab Test Now is a healthcare service franchise that could help diversify your portfolio and increase your profits.

Whether you plan to be a franchisee with one location or you are looking to grow a diverse portfolio that includes franchises in a variety of sectors, it’s important that you choose the most profitable franchises. By understanding the different factors that impact a brand’s success and recognizing that varying investment costs can also make a difference in your bottom line, you will be able to easily choose the most profitable franchise to own.

Includes owner satisfaction report
out of 100

Kona Ice

Industry: Food & Beverage
Investment: $149,995 - $189,300 Cash Required: $20,000
Includes owner satisfaction report
out of 100

Snap-on Tools

Industry: Automotive, Services
Investment: $217,505 - $481,554 Cash Required: $45,088
Cruise ship on water city lights
Includes owner satisfaction report
out of 100

Cruise Planners

Investment: $2,295 - $23,465 Cash Required: $10,995