10 Best Franchises to Own to Make Money 

Today we’re talking about the best franchises to buy based on your needs.

If you have an entrepreneurial mindset and want to own your own business, but don’t want to start from scratch with building a concept, marketing strategy, and client base, franchising might be a great option for you! The U.S. franchise sector is comprised of nearly 800,000 businesses.

Furthermore, franchises account for about 3% of national GDP. While you do need to make an initial investment to get started with a franchise, the return on investment (ROI) can be huge, and has the potential to offer long-term financial stability.

What is a Franchise?

A franchise is a business in which independent entrepreneurs purchase the rights to use a larger company’s business name, logo, and products to operate an individual location. (Think locally owned 7-Eleven locations.) The franchiser is the owner of the larger company who sells the rights to license their business, and the franchisee is the third-party owner and operator of the business locations. 

A huge benefit of owning a franchise is that franchise opportunities come with premade marketing collateral and high brand awareness. Additionally, this is collaborative a venture between you and the franchises. You will get extensive business support from the franchiser.

The US Census reports that 11.4% of all businesses in the US are franchises. Restaurants (i.e. McDonalds, Taco Bell, Popeye’s, KFC, Subway, etc.) make up the bulk of franchise opportunities. With that, said, gas and convenience stores, car dealerships, fitness, real estate, and hospitality sectors also make up a sizable chunk.

How to Determine the Best Franchise for You 

In this section, we’re discussing how different elements should factor into your decision about owning a franchise.

Your Interests

When determining the best franchise opportunities for your lifestyle, consider your interests and how this might support varying franchises. For example, if you are a fitness trainer by trade with an entrepreneurial mindset, opting for a gym franchise would be a great way to integrate a franchise into your life.

On the flip side, if you abhor fast food, you probably won’t want to invest in a fast food chain franchise, even if it is a top franchise in the area.

Owning a franchise means that you will be a business owner and will be involved in every area of business. If you pick a franchise that aligns with your goals, lifestyle, and values, it will be much easier to market the concept and facilitate a successful franchise that fosters stability for you.

Cost or Buy-In 

Every franchise will require some upfront costs, initial investments, and fees. When evaluating a prospective franchise, it is important to assess the total investment needed to see what you can afford based on the franchise business  model.

Regardless of what businesses end up being the most profitable franchises, if you don’t have enough liquid capital to afford the initial investment and setup, you won’t be able to make it work.

Depending on the franchise opportunity, some businesses require as little as $3,000 in franchise fees for franchises without a physical location, while other businesses require several hundred thousand dollars in initial investment for startup costs.

Profitability Opportunities

There is not an exact formula to determine the profitability of a franchise. You’ll have to evaluate the business model, startup costs, and royalty fees.

There are a few important factors to consider, including unit growth, new franchise success rate, and financial statements of the franchiser.

• Unit growth refers to how many units (franchise locations) have opened in recent years
• New franchisee success rate refers to the percentage of new franchises that are still operating after one year of business
• Franchiser’s financial statements refers to the franchise disclosure document and the average sales per unit (franchise location)

First instinct might lead you to seek out a big, highly recognizable brand. While brand recognition is always helpful, purchasing a large franchise isn’t always ideal, because up-front costs are usually significant.

If you’re just starting out in the franchise sector, a smaller franchiser (small business) could have lower barriers to entry with the costs. You’ll just want to evaluate the financials and data for low-cost franchises to ensure that the company has been growing in revenue.

Market Territory 

When you’re in the market to become a franchisee, it is important to evaluate the market territory to determine how adoptable the concept will be in your area. While many franchisers are looking to grow into different geographical areas, it is essential to consider the plausibility of the franchise based on the region and regional consumer data.

For example, if there is another franchise location within a couple of miles of where you’d like to open your business, you’re setting yourself up for competition between locations with a low likelihood of profitability.

Alternately, if there is no demand for the franchise you’re interested in given the region, it won’t be profitable. For example, a pool and spa franchise won’t be profitable in an area with few local or private pools.

Be sure to check whether your target franchiser wants to open a location in your area. If not, decide whether you’re willing to relocate.

Time Commitment 

When considering a franchise, evaluate the time commitment guidelines and how that will fit into your life. For example, the franchise term for McDonald’s is 20 years. If you cannot commit to the franchise term, you’ll need to determine the viability of selling your franchises. It will also be important to research any terms and regulations surrounding the sale of your franchise.

Best Franchises to Buy

These franchises are businesses in North America and beyond who are profitable, well recognized, and award winning for both their brand recognition and franchisee support. Additionally, these brands have a good reputation for customer service and brand name. Many of these franchises also have financial support for investors.

When looking at a prospective franchise, you’ll want to ensure that the company’s mission aligns with your own values. These top franchises offer comprehensive training for franchisees to ensure that individual franchise locations become profitable and successful businesses.

1. Premier Pools and Spas

Category: Pool Building

Investment: $48,000 – $107,500

Fees: $10,000 minimum cash required

Financing Available: Through an internal premier financing program

Details of Brand: Premier Pools & Spas is the largest pool builder in the world. Over the last 30 years, the company has built more than 70,000 pools by combining the tremendous buying power of a nationwide company with the kind of service you can expect from a family-owned business. PP&S was awarded “Best in Category” and “Top Franchises Satisfaction Award” in 2023.

2. Great Clips

Category: Hair Salon Franchise

Investment: $136,900 to $259,400

Fees: $20,000 franchise fee

Financing Available: Through third-party lenders

Details of Brand: Great Clips has been in business for 30 years and provides its franchise owners with up-to-date technology and training. It has invested heavily in market research to provide customers with the best service and experience.

3. Sotheby’s International Realty

Category: Real Estate

Investment: $194,650 – $627,000

Fees: $63,650 minimum cash required

Financing Available: No

Details of Brand: Sotheby’s International Realty is a luxury real estate brand founded in 1976 by Sotheby’s fine art dealers. Sotheby’s International Realty operates as a franchise focusing on brokering and marketing of residential real estate. Sotheby’s won “Top Franchises Satisfaction Award” in 2023 and “10 Year hall of Fame”. 

4. Ace Hardware 

Category: Retail Franchise

Investment: $650,000 – $1,000,000

Fees: Minimum $250,000 unencumbered cash, with a $400,000 net worth

Financing Available: Through Ace’s internal program

Details of Brand: Ace is unlike any other business or franchise opportunity in the world because there are no franchise fees and no royalty fees. You own the brand, your store, and your company. Ace was ranked #5 Franchise in the Times Top 500 in Franchise Times, and #9 on Franchise Direct Top 100 Global Franchises.

5. 7-Eleven

Category: Retail Franchise

Investment: $37,550 to $1,149,900

Fees: $10,000 to $1,000,000 franchise fee

Financing Available: Through 7-Eleven’s internal program

Details of Brand: 7‑Eleven is the world’s largest convenience store and a top-10 franchisor, and is a legendary brand that is known and loved around the world.

6. McDonald’s

Category: Fast-Food Franchise

Investment: $1,008,000 to $2,214,080

Fees: 4-5% royalty fees

Financing Available: Through third party lenders

Details of Brand: McDonald’s continues to be recognized as a premier franchising company around the world. So much so, that more than 90% of restaurants in the U.S. are owned and operated by franchisees.

7. Dunkin’ Donuts

Category: Food & Drink Franchise

Investment: $109,700 to $1,637,700

Fees: 5% royalty fee

Financing Available: Through third party lenders

Details of Brand: This business has locations in 32 countries. It was rated #1 in customer loyalty by Brand Keys’ Customer Loyalty Engagement Index. And they support their franchisees with training and assistance with site selection, construction, operations, management, and marketing.

8. The UPS Store

Category: Printing and Packing Franchise

Investment: $138,433 to $460,031

Fees: $29,950 franchise fee

Financing Available: Through Guidant Financial

Details of Brand: The UPS Store is the top-ranked franchise in the business services industry. It boasts financial stability, brand recognition, and dedicated training and support — and 84% of the U.S. population lives within 10 miles of a UPS Store.

9. Popeyes

Category: Fast-Food Franchise

Investment: $383,500 and $2,620,800

Fees: $50,000 franchise fee

Financing Available: No

Details of Brand: Popeyes is consistently one of the top franchises to own in Entrepreneur’s Franchise 500 Rankings. It’s a well-known fast-food brand with a global presence, strong advertising strategies, and well-developed core philosophies.

10. Taco Bell

Category: Fast-Food Franchise

Investment: $525,100 to $2,622,400

Fees: 5.5% royalty fees, with up to $45,000 franchise fee

Financing Available: Through third-party lenders

Details of Brand: This quick-service restaurant brand has been around for 50 years and has developed financial stability and brand recognition. Additionally, it has a proven operating system and gives you access to restaurant resources and a community of more than 350 franchisees who know the business.