Franchises are a great way to kickstart your business journey. Capitalizing on an already popular and global business chain is fantastic because you don’t have to spend months or years trying to popularize the brand.
Most brands that offer franchise opportunities already have high brand awareness in the market. Therefore, you won’t have to shoulder that extra responsibility to “get the word out.” However, it is also true that setting up a franchise isn’t cheap. There are several factors at stake.
This article will explore the top most profitable franchises you can invest in 2024 to churn maximum returns on your spending.
Also Read –How Much Does It Cost to Start a Crumbl Cookie Franchise?
Table of Contents
Can Owning Franchises Make You Rich?
The most superficial answer would be YES. When you invest in a reputable and robust franchise, you have a high chance of churning a profit.
Investing in a franchise is also a great way to diversify your investment portfolio. Instead of only relying on standard investment channels, you get to pinch the big fish in the sea.
Is it an easy ride? Not. Is it worth it in the long run? Without a speck of doubt.
One of the highlights of a franchise business is that you get the flexibility of a small business but with a large, reputable, and global brand tag.
Will it make you rich? This answer is subject. It depends on the franchise you are investing in and the business management you have in place. The location of the franchise and the footfall it gets matters too.
Also Read: Topgolf Franchise Cost: Everything You Need to Know
Most Profitable Franchises to Own
With such high praise for franchise business, the follow-up question in most people’s minds is, “Which ones should I invest in?”
Thankfully, we are here to make a choice easier for you. Following are the top 15 profitable franchises to own in 2024.
1. McDonald’s
Image Source : mcdonalds
Initial investment – $1,008,000 to $2,214,080
Franchise fee – $45,000
Royalty fee – 4-5%
McDonald’s is a leading global fast-food chain across the world. Given the kind of name and popularity of the business, it isn’t surprising that venturing into the franchise business niche with McDonald’s is a great place to start. A McDonald’s franchise’s initial investment and liquid cash requirement are pretty hefty. But you get a brand that’s globally loved and recognized.
2. Supercuts
Image Source: Supercuts
Initial investment – $155,406 to $289,378
Franchise fee – $20,000
Royalty fee – 6%
If you want to venture into the hair care industry, Supercuts is a great franchise model. Their name and recognition in the market are pretty promising. Also, you get to invest in operational excellence, which is why Supercuts is so popular. However, we’d recommend venturing into this franchise if you have a basic idea about beauty and hair care. That basic knowledge allows you to hire the right people and further expand the business.
3. Ace Hardware
Image Source: Ace Hardware
Initial investment – $280,000 to $2,000,000
Franchise fee – $5000
Royalty fee – No loyalty fee
Home improvement is a leading niche that will never go out of business. So, global and well-acclaimed businesses like Ace Hardware make an excellent franchise investment. The Ace Hardware franchise is a great and profitable business model to diversify your investment portfolio with no royalty fee. In addition, their store-brand products and fantastic customer service make them a premium brand in the market.
Also Read – 10 Best Bubble Tea Franchise To Start Your Own Business
4. Dunkin
Image Source : Dunkin
Initial investment – $109,700 to $1,637,700
Franchise fee – $40,000 to $90,000
Royalty fee – 5%
Dunkin’ is a name everyone resonates with when the term donut comes up. That’s how popular this food and beverage brand is. With a fantastic brand value and globally acclaimed reputation, setting up a Dunkin’ franchise business will reap amazing profits without compromise. With the right ingredients, proper staff, and fantastic customer service, running an already-established brand new is never too challenging.
5. 7-Eleven
Image Source: 7-Eleven
Initial investment – $37,550 to $1,149,900
Franchise fee – $10,000 to $1,000,000
Royalty fee – Variable
Like how people connect burgers with McDonald’s and donuts with Dunkin’, 7-Eleven is a synonym for convenience stores among consumers. It has grown tremendously over the last decade, and the bar is consistently rising. Being available across multiple countries, setting up a 7-Eleven is not just profitable but extremely rewarding as a long-term investment.
18 Cheapest Franchises to Open in 2022 (Updated): Low-Cost Franchises
6. JAN-PRO
Image Source: JAN-PRO
Initial investment – $3,985 to $51,605
Franchise fee – $2,520 to $44,000
Royalty fee – 10%
With the kind of fast-paced life that we are stuck in, the concept of cleaning and maintenance will soon shift to the shoulders of professionals. JAN-PRO is a fantastic business that explores that niche. The affordable franchise cost and investment is the great thing about kickstarting your franchise business with them. You won’t have to break your bank account.
7. The UPS Store
Image Source: The UPS Store
Initial investment – $138,433 to $460,031
Franchise fee – $29,950
Royalty fee – 5%
With a steep rise in small businesses worldwide, the demand for printing and packaging services is also increasing. The UPS Store is an established brand name in this niche that you can venture into with optimal trust and expectations. The UPS Store is a premium choice if you are in the United States and plan to invest in a profitable franchise chain.
8. Popeyes
Image Source: Popeyes
Initial investment – $383,500 and $2,620,800
Franchise fee – $50,000
Royalty fee – 5%
If you thought McDonald’s reaps impressive profit in sales, Popeyes is no different. This fast-food franchise is a leading name worldwide and is known for its staple chicken sandwich. It is also ranked in the top tier under Entrepreneur’s Franchise 500. With fantastic customer service, high-grade food quality, and global recognition, this is another franchise we’d recommend venturing into.
Krispy Kreme Franchise : How To Open, Cost & More
9. Pearle Vision
Image Source: Pearle Vision
Initial investment – $519,356 to $848,384
Franchise fee – $30,000
Royalty fee – 7%
With the vision care industry continually booming and expanding, brands like Pearle Vision will never go out of business. So, if you are considering investing in a franchise in the health and wellness industry, this is a great place to start. Get easy access to turnkey marketing plans, brand recognition, and royalty recognition programs all packed into one.
10. Dream Vacations
Image Source: Dream Vacations
Initial investment – $3,245 to $21,850
Franchise fee – $495 to $9,800
Royalty fee – 1.5-3%
Who doesn’t love a well-traveled vacation itinerary, right? Dream Vacations is a business model that considers people’s travel needs. So, the Dream Vacations franchise is an excellent deal if you want to capitalize on an already established business model with a very affordable investment. The discounted investment options are what attract most people.
11. Great Clips
Image Source: Great Clips
Initial investment – $136,900 to $259,400
Franchise fee – $20,000
Royalty fee – 6%
We have talked about another hair care franchise, but Great Clips deserves an honorary mention too. With over 30 years of business experience. However, the best part of this franchise is that it trains and provides the franchise owners with all the latest technology and training data.
12. Anytime Fitness
Image Soure: Anytime Fitness
Initial investment – $105,000 to $720,000
Franchise fee – $35,000
Royalty fee – $549/month
Gym memberships and businesses centered around fitness aren’t dead if that’s what you were thinking. Anytime Fitness is a testament to that statement. Being one of the most mainstream businesses in this niche, it isn’t surprising that investment in this franchise can be a game changer for your net worth. The operating costs are pretty tame but bring tremendous profits.
13. The Maids
Image Search:The Maids
Initial investment – $64,100 to $154,300
Franchise fee – $12,500
Royalty fee – 3.9-6.9%
House cleaning is one of the fastest-growing business models in the present world. However, with people hustling and living a fast-paced life, paying attention to the maintenance of a house can be challenging. That’s where businesses like The Maids come in. Ranked as the #1 residential cleaning company, The Maids already have a great name in the market.
14. Sonic Drive-In
Image Source: Sonic Drive-In
Initial investment – $1,240,000 to $3,540,000
Franchise fee – $45,000
Royalty fee – 2.5-5%
You can never have too many fast-food chains in a place, right? So, when it comes to tapping into the franchise business, the Sonic Drive-in is a name that deserves a special mention. The brand is well-acclaimed in the market and brings you access to growing brand recognition. So, expecting 1M+ in revenue isn’t too far-fetched with Sonic.
15. Taco Bell
Image Source: Taco Bell
Initial investment – $525,100 to $2,622,400
Franchise fee – $25,000 to $45,000
Royalty fee – 5.5%
While we are already on the topic of fast food, we couldn’t miss out on Taco Bell, another public favorite. With a brand name and popularity for over five decades, the Taco Bell franchise will yield a lot in profits. The brand already has 350+ franchisees and a proven business model that will keep bringing customers for the unforeseen future.
Choosing the Most Profitable Franchise
Now that you have a better understanding of some of the most profitable franchises, knowing the distinguishing factors is crucial. You have to keep specific parameters in mind, including:
Cost
When it comes to cost and expenditure, you must understand the budget. From the location to the material, you have to pay for multiple factors. So instead of going with the budget over the back of your mind, we’d suggest you look into the brands you want to invest in and check their initial investment and capital requirements before jumping the big guns.
Growth
Is it an established brand? Is there a demand for the brand where you want to start the business? These are some questions you need to answer first. Even if you invest in a big brand like McDonald’s, not assessing the scope of growth before establishing the franchise can backfire. If there is another McDonald’s, it might affect your sales. Likewise, it will affect the profits if it’s utterly secluded with less footfall.
Profitability
There’s no point in selecting a franchise to invest in if you don’t know the profits it generates. A steady cash flow and profit from a franchise depend on several factors. From the brand’s reputation in the market to the kind of service you provide, a lot will decide how much profit you reap.
Support
Cross-checking the brand’s support is crucial for whichever franchise model you invest in. You want to ensure that you’d get enough support in terms of training and access to materials and technology to kickstart the business and keep it running in profits.
Brand strength
There are multiple brands in the market that open franchising opportunities. Some offer affordable investment options, and some established brands require a higher capital. Your aim when choosing a franchise is to look into the brand’s strength. If the brand is already established in the market, you won’t have to worry about marketing or getting the word out. The name of the brand will be enough to do the trick.
Financial stability
This is a factor you have to consider in both parts. You have to ensure the financial stability of the brand and your finances too. Having a peek into the financial stability before investing in their franchise ensures that your investment will reap tremendous benefits in the long run.
Conclusion
And, with that, we come to the end of the list of the top franchisees you can consider for investment. It’s time to diversify your investment portfolio with the right tools. We hope this article gives you a basic understanding of franchise investment and where you can kickstart that journey for yourself.
About Carson Derrow
