14 Most Profitable Franchises To Own in 2024

September 14, 2022

The perfect alternative way to become a business owner is to buy a franchise.

A franchise is an authorization granted by a government or private company, allowing the owners to operate on behalf of the company. The franchise business has grown because more people are interested in taking these franchises to increase their earnings.

It can be hard to know which are the most profitable franchises. In this post, we will talk about :

Does Owning a Franchise Make You Rich?

Owning a franchise can be a great way to increase your earnings and accumulate wealth, but it’s not a guarantee.

The success of a franchise is determined by several factors, including the industry you select, the location of your business, and the level of effort you put into marketing and managing your franchise.

For example, one of the most profitable franchise opportunities in the fast-food industry, McDonald’s, has a long-standing reputation and strong customer base contributed to its success.

McDonald’s franchise offers exceptional marketing support and extensive business training to their franchisees, which can generate more profit.

There are also other factors to consider, such as:

These expenses may seem minor, but they can quickly add up and significantly impact overall revenue.

Even the most profitable franchises can face difficulties. Therefore, how can you measure your business profitability?

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How to Measure Profitability of a Franchise Business

Many business owners understand profitability as revenue exceeding expenses. However, franchisees should look beyond, here are some key indicators that can provide insights into a franchise’s profitability.

1. Return on Investment (ROI)

Getting a better Return on Investment (ROI) basically means your investment is more profitable. On the flip side, a lower franchise ROI suggests your return isn’t as advantageous.

Now, let’s break down the ROI formula: ROI = (Net Profit ÷ Cost of Investment) x 100. Net profit is what you get after deducting all your expenses—franchise fees, ongoing fees, and operating expenses—from your revenue.

Take that net profit, divide it by your initial investment, and then multiply the result by 100. Boom, you’ve got your ROI percentage.

Why does this matter? Well, it’s a big deal. This metric tells you how successful and profitable your investment is overall.

2. Break-Even Analysis

Find out when your franchise hits the break-even point – the moment its earnings match the total initial investment. This step helps figure out how long it takes for the franchise to turn a profit after covering all the costs.

Keep a close eye on sales compared to the break-even point. It’s crucial to make sure your franchise stays profitable, especially when sales go up and down.

3. Financial Statements

Get a solid grasp of how well a franchise owner is doing financially by looking at financial statements, which will be provided by the Franchisor in the FDD (Franchise Disclosure Document).

These documents, like income statements, balance sheets, and cash flow statements, give you a deep dive into revenues, expenses, assets, liabilities, and cash flows.

4. Gross Profit Margin

Checking the profitability of a business is made easier with a key metric – the gross profit margin. This metric shows the percentage of revenue left after subtracting the cost of goods sold (COGS).

A higher gross profit margin means better profitability. It tells you the part of each sale that goes toward covering operating costs and making a profit.

5. Operating Costs

Running a franchise involves various costs – rent, labor, utilities, supplies, marketing, and insurance, to name a few. It’s crucial to carefully assess these operating costs. High costs in relation to revenues could lead to potential financial losses.

6. Customer Base and Market Analysis

Learn about your customer base by finding out which industries contribute the most to your franchise’s income. Evaluate customer diversity to avoid relying too much on a single customer or industry.

Do some market research on the local market where your franchise is set to operate. This helps you gauge its potential for success. Understanding the local landscape is key to making informed decisions for your franchise.

Top 14 Most Profitable Franchises

It’s crucial to make sure you’re targeting the right opportunity this year, especially when it comes to finding the perfect franchise business to start.

To help you in your exploration, we’ve compiled a list of US most profitable franchise business ideas that are worth considering. This is just the first step in your journey toward franchise success.

Franchise Industry	Profit Margin
Auto Repair	50-65% (labor)
Home Repair	30%40%
Car Wash	20%-55%
Digital Marketing	20%-50%
Laundromat	20%-35%
Accounting and Bookkeeping	15% to 40%
Real Estate	10%-40%
Fitness	10%-30%
Cleaning	10%-28%
Senior Care	10%-20%
IT Support	10%-20%
Travel Agency	10%-15%
Food Truck	7%-8%

1. Food Truck

The food industry is changing rapidly to meet the demands of the population and address current challenges. Investing in a food truck business is one of the attractive franchise opportunities in this sector that offers the potential for lucrative returns.

In the USA, the average profit margin in this industry is approximately 7%, with the market revenue for food truck businesses reaching a substantial 1.3 billion dollars in 2021.

According to IBISWorld, the industry has experienced a notable growth of 13.7% from the previous year, with a total of 35,512 food truck businesses operating in the U.S. in 2022.

This expansion signifies a thriving market, offering ample opportunities for entrepreneurs to tap into the mobile food service industry.

The required investment to start a truck franchise ranges from $50,000 to $200,000, providing a diverse range of options to suit various budgets.

With the increasing demand for convenient and unique food options, coupled with the upward trajectory of the market, a truck franchise presents a promising avenue for individuals looking to enter the vibrant and profitable world of mobile food service in the United States.

2. Fitness Franchise

Owning the most profitable franchises in the fitness industry can be a wise investment choice. Profit margins for these businesses range from 10% to 30%.

Over the past five years, the industry has seen a steady rise in annual revenue, with a 4.9% increase estimated at $2.9 billion across 9,427 businesses. This makes it a promising sector to invest in.

The industry’s resilience is reflected in the 2.6% increase to 112,406 Gym, Health, and Fitness Clubs businesses in 2022, indicating a thriving market. The investment required ranges from $245,000 to $400,000, catering to various financial capacities.

With a strong revenue trajectory and a growing number of fitness franchises, this industry presents a compelling opportunity for entrepreneurs seeking a profitable and health-conscious venture in the United States.

Franchise owners in this industry have the potential to generate significant income, exemplified by two key avenues:

Steady Membership Fees

One lucrative source of income comes from the steady flow of monthly membership fees associated with owning a gym franchise. These recurring fees, whether paid monthly or yearly, can vary widely, ranging from a few hundred dollars to several thousand dollars.

The variability is linked to the range of amenities and services provided by the gym, allowing flexibility in catering to diverse customer preferences. This consistent revenue stream provides a stable financial foundation for the business.

Low Initial Investment in Personal Training Franchise

Another noteworthy opportunity lies in personal training franchises, which offer a low initial investment and do not require a physical gym facility. This model has two advantages:

This flexibility not only reduces the financial barriers to entry but also enables entrepreneurs to start making profits more rapidly, making it an appealing option for those seeking a faster return on investment in the dynamic fitness industry.

3. Cleaning Service

A cleaning business can be a lucrative venture since it is easy to start and has high success rates.

The global cleaning services market reached a whopping $1.56 billion in 2022, and it is expected to experience a Compound Annual Growth Rate (CAGR) of 6.6% from 2023 to 2030.

Cleaning services can be divided into two categories:

Commercial

Commercial cleaning services deal with high-traffic public areas, requiring specific and heavy-duty cleaning.

Residential.

Residential cleaning services involve disinfection and specific cleaning, but on a smaller scale and with different equipment.

For homeowners seeking a dependable cleaning service of the highest caliber, owning an established brand can be a game-changer. With multiple revenue streams and top-notch training, you can expand your business and boost your earnings to new heights.

Moreover, the location of your business plays a pivotal role in determining your annual cleaning profits. So, it’s crucial to consider the location factor while setting up your profitable franchise business.

4. Real Estate

Real estate franchises in the USA provide a wide range of services related to buying, selling, and renting properties. These services include property management, home inspection, and mortgage financing, among others.

The demand for real estate franchises is being fueled by the projected growth in the US Residential Real Estate Market, which is expected to reach USD 2.80 trillion by 2028.

This growth rate of 2.04% from 2023 to 2028 underscores the potential for substantial profitability within the residential real estate sector.

With the thriving commercial real estate market and the continuous expansion of the residential sector, real estate franchises are a lucrative investment opportunity for those seeking sustained returns.

If you’re thinking about starting your real estate franchise, here are some steps to help you get started:

1. Figure out how much money you can spend.

Think about how much money you have to spend on your business. This will help you figure out what kind of franchise you can afford. You’ll need to think about things like rent, supplies, and equipment, as well as how much you might need to pay employees.

2. Decide what kind of real estate you’re interested in.

There are lots of different types of real estate businesses. You might be interested in selling commercial properties, helping people find rental homes or flipping houses. Think about what you’re passionate about and what kind of business you’d like to run.

3. Figure out what kind of support you need.

When you buy a franchise, you’ll get help from the company that owns the franchise. You’ll want to figure out what kind of help you need, like training or marketing support.

4. Do your research.

There are lots of different real estate franchises out there, so you’ll want to do your research to find the one that’s right for you. Look at different companies and compare what they offer.

5. Talk to people.

Once you’ve found some franchises that you’re interested in, reach out to the company and ask for more information. You can also talk to other franchisees to get their advice.

6. Make your decision.

After you’ve gathered all the information you need, it’s time to decide. Think about what’s important to you, like how much money you’ll need to invest and what kind of support you’ll get from the franchise company. Once you’ve made your decision, you’ll be on your way to owning your real estate franchise!

5. Travel Agency

Investing in a travel agency franchise can be a financially rewarding decision, with a profit margin ranging from 10% to 15%.

Although the market size experienced a slight dip to 37.7 billion U.S. dollars in 2022, the industry has demonstrated resilience, with 49,131 travel agency businesses currently operating in the US, marking a 0.5% increase from 2021.

Aspiring entrepreneurs can enter this promising industry with an initial investment of $50,000. However, running a travel agency franchise involves risks and expenses that need to be carefully considered before starting this venture.

Opting for a proven business model, such as this franchise, that has already built a loyal customer base can increase your likelihood of success.

It’s also crucial to ensure that the franchise company offers:

Without proper guidance and support, market competition, fluctuating property values, and economic uncertainties could adversely affect the potential success of the real estate franchise.

However, with thoughtful consideration and the right support, a real estate franchise holds the potential to generate a high income.

6. Laundromat

Laundromats are a wise investment choice for entrepreneurs seeking the most profitable franchises. The global dry-cleaning and laundry services market is currently valued at $69.3 billion in 2022, with a projected compound annual growth rate (CAGR) of 7% from 2023 to 2030.

The increasing demand for convenient and cost-effective clean clothes solutions is the driving force behind this growth, making laundromats an attractive investment opportunity.

This industry has adapted to modern lifestyles, offering specialized services such as:

Laundromats have also evolved beyond traditional coin payments and now incorporate card systems, digital payments, and app-based models, embracing technological advancements.

Investing in laundromats provides financial stability and growth potential due to a consistent customer base and a recurring need for laundry services.

Moreover, entrepreneurs are drawn to the recession-proof nature of the industry, boasting profit margins of 20-30%, as well as passive income opportunities.

Compared to other investments, laundromats present many positive attributes, including:

Overall, investing in laundromats offers financial stability and growth potential in an industry that has adapted well to modern lifestyles and embraces technological advancements.

7. Digital Marketing

Marketing has always been a challenging profession. In today’s digital world, it’s even more difficult than it was three decades ago when print, radio, and television were the only ways to advertise.

However, digital advertising has shown significant progress and success in recent years, particularly in digital franchise opportunities for marketing.

The global digital advertising and marketing market is expected to be worth $667 billion in 2024, with a projected growth of $786.2 billion by 2026.

In the United States alone, the digital advertising and marketing market is worth $460 billion, demonstrating the lucrative nature of the industry. This makes it an attractive and profitable option for entrepreneurs and investors.

Why now is the opportune moment to invest in a digital marketing franchise:

Surging Market Demand:

The demand for digital marketing services is on the rise, as companies of all sizes and industries require digital expertise to stay ahead in the competitive online landscape. By investing now, you position yourself at the forefront of this expanding industry.

Lower Entry Barriers:

Compared to traditional franchising, digital marketing franchises typically offer a lower initial franchise fee. This translates to more manageable investment costs, making it easier for aspiring entrepreneurs to enter the market.

Flexibility in Work Options:

You can work remotely and serve clients online, which affords you a better work-life balance and the autonomy to choose when and where you work.

Cost-Effectiveness:

Franchisors can leverage their expertise and resources to deliver a range of digital marketing services to franchisees at a reduced cost compared to independent endeavors.

Expertise and Experience:

Businesses can benefit greatly from digital marketing strategies that help them reach their target audience and achieve their goals. These strategies include SEO, social media marketing, email marketing, and content marketing, among others.

8. Senior Care

The senior care franchise is a highly profitable venture that has witnessed significant growth in recent years, making it one of the fastest-growing industries in the United States, according to the 2021 Special Report by FBR.

In fact, it outperformed other industries, such as real estate, health and personal services, and business services, in terms of growth.

According to the AARP, the number of seniors requiring medical attention for chronic illnesses will rise from approximately 14% in 2010 to 21% by 2050.

With PRB predicting that the number of Americans aged 65 and above will double from 46 million in 2016 to over 98 million by 2060, it is evident that the senior care industry is booming.

Investing in a senior care franchise is a smart decision for several reasons.

You do not need a background in health care to succeed.
It is an opportunity to make a positive impact on your local community.
It provides a chance to connect with like-minded individuals who share your values.
Senior care is a recession-resistant industry, making it a stable and secure investment.
Investing in senior care franchises offers a more flexible lifestyle.

9. Car Wash

Car wash ownership presents a lucrative investment opportunity due to its consistent demand. For instance, in 2022, the worldwide car wash services market was valued at USD 35.26 Billion, with an expected CAGR of 5.33% between 2023 and 2032.

Car wash franchises provide various services such as full-service wash, self-wash, express wash, quick lube, or a combination of these. The choice of the car wash franchise will depend on the owner’s ability to manage the business and its location.

So, how much do car wash franchise owners make?

The annual income from a car wash depends on the type of car wash the franchise owner runs, the cost per vehicle, and the recurring expenses. As a baseline, an in-bay automatic car wash is estimated to generate an average annual profit of $86,531.

However, this figure represents only one type of car wash and does not reflect the actual income levels of other car wash professionals. Nevertheless, the growth of the car wash services industry is evident.

10. Auto Repair

In the United States, there are currently over 284 million vehicles in operation.

Due to the pandemic, people prefer private vehicles over public transportation, which has caused a surge in the number of vehicles on the road. As a result, the automotive industry has seen an increase in the profitability of car repair services.

According to the U.S. Auto Care Association data, automotive repair is a $383 billion industry with an annual growth rate of 3.4 percent forecasted to reach $477.6 billion by 2024.

This profitable venture offers a wide range of services, including major car services that incorporate all the necessary checks from an interim and full service, along with other crucial items such as:

If you want to own an auto repair shop, franchising can be an attractive option. However, you should understand the whole process and the capital requirements.

11. Accounting and Bookkeeping

Another profitable franchise business in the U.S. is accounting and bookkeeping. They are related but distinct aspects of financial management, with bookkeeping being the process of recording financial transactions and accounting involving their classification and summarization.

It’s worth noting that the accounting, tax preparation, bookkeeping, and payroll services sector is expected to generate around 203.8 billion U.S. dollars in revenue by 2024, as per Statista.

Not only that, but 56% of accounting and bookkeeping firms have boosted their earnings by broadening their service offerings, which suggests that this type of business is highly profitable.

Some of the specific services offered by accounting and bookkeeping include:

If you’re confident in pursuing such an endeavor, it’s essential to understand the franchise fees, royalties, and startup expenses involved.

12. Business Consulting

Business consulting is a lucrative venture that involves harnessing your existing business knowledge to help other brands succeed. Rather than investing money, you will sell your expertise and offer valuable insights and advice based on your experience.

Currently, businesses are seeking outside perspectives to improve their performance, which is why the consulting industry is in high demand. The consulting service market is around $250 billion, with a projected growth of 4.96% between 2024 to 2029. Therefore, this opportunity is not slowing down any time soon.

So, what are the steps in opening a consulting franchise?

Choose your area of expertise
Determine your consulting services
Identify your target market
Craft a business plan
Set your consulting fees
Refine your elevator pitch
Prepare a boilerplate consulting proposal
Network with potential consulting clients
Protect your business with consultant insurance

13. Home Repair

If you’re considering a franchise opportunity with a winning edge, then home repair franchises could be a great option. Homeowners in America spent a whopping $538 billion on home improvement projects in 2021, and the market for home services is expected to reach $621 billion by 2025.

Whether because of natural disasters or general wear and tear, homeowners need reliable home renovation companies to help maintain and improve their properties.

While owning a home repair franchise can be a profitable business venture, it requires a significant initial investment, which depends on various factors such as the franchise fee structure, marketing costs, and business size.

According to a report by Franchise Business Review, the average home repair franchisee earns an annual income of $97,000. However, this number can vary depending on factors, such as:

Location

The franchise owners’ location plays a vital role; areas with a higher cost of living or greater demand for home repair services tend to generate more income.

Level of Expertise and Experience

Franchise owners who have extensive work experience and specialized skills in specific areas can command higher rates and thus generate a higher income.

Reputation

Having a positive reputation can also lead to charging premium rates, resulting in increased income.

Market Demand and Competition

The level of market demand and competition in the area can affect the income earned by the franchise owner. In areas with high demand and limited competition, business owners may be able to charge higher prices, resulting in higher earnings.

14. IT Support

Nowadays, businesses rely heavily on computers and technology to function effectively. It is when IT support franchises come into play to help companies keep their technological systems running smoothly.

According to Grand View Research, the market for global IT Professional Services is worth 1.9 trillion US dollars by 2025.

Due to the variety of products in the IT market, there is an increasing demand for IT services which has led to multiple companies and franchises offering specialized services, such as:

One of the main advantages of starting an IT franchise is that it requires low start-up costs since it does not require a storefront or much equipment. Many of these franchises take their services directly to the businesses they assist, doing the job on-site.

IT support franchises are an excellent fit for potential franchisees with a background in computer and technology, allowing tech-savvy entrepreneurs to utilize their expert knowledge of computers, the internet, and advancing technologies to help businesses grow and excel in their operations.

Unlock the Most Profitable Franchises Today!

Exploring America’s most profitable franchise opportunities is a wise move for those seeking entrepreneurial endeavors that offer financial stability.

As well as, considering the indicators to measure the profitability of franchises can help you make a well-informed decision.

Finding a perfect franchise business that fits your interests and experience can be challenging. With the help of a franchise consultant, your journey to franchise ownership can be smooth sailing, from investigating an opportunity and understanding the initial franchise fee to signing an agreement.

In conclusion, this careful consideration could lead you to start a profitable one that will set you up for success.