Starting a franchise can be an excellent way to jump into business ownership while benefiting from an established brand, proven systems, and ongoing support. But with so many franchise opportunities out there, how do you know which ones are most profitable? Whether you’re looking for a low-cost investment or a business model with high earning potential, this guide breaks down 30 of the most profitable franchises you can start in 2024.
What Makes a Franchise Profitable?
Before we dive into the list, let’s explore a few key factors that make a franchise truly profitable:
- Brand Recognition: A well-known brand can attract customers right from day one.
- Support System: Franchises with strong training and marketing support can help you scale faster.
- Initial Investment vs. Potential Revenue: Low initial costs paired with high demand make for a highly profitable business.
Table of Contents
Now, let’s jump into the top franchises that are set to thrive in 2024.
Most Profitable Franchises of 2024
1. McDonald’s
Industry: Fast Food
Initial Investment: $1M – $2.3M
Average Annual Revenue: $2.7M per location
McDonald’s remains a powerhouse in the fast food industry. With one of the most recognized brands worldwide, the profit potential is massive, though the initial investment can be steep.
2. Dunkin’
Industry: Coffee & Donuts
Initial Investment: $120K – $1.8M
Average Annual Revenue: $900K per location
Dunkin’ continues to be a popular choice for entrepreneurs thanks to its strong brand and a menu that caters to coffee lovers on the go.
3. The UPS Store
Industry: Shipping & Business Services
Initial Investment: $138K – $470K
Average Annual Revenue: $500K+ per location
The UPS Store benefits from increasing demand for shipping services in the eCommerce era. With a lower initial investment, it’s a solid franchise with reliable returns.
4. Anytime Fitness
Industry: Fitness
Initial Investment: $107K – $722K
Average Annual Revenue: $400K per location
The fitness industry is booming, and Anytime Fitness offers a 24-hour gym model that appeals to customers seeking flexibility.
5. 7-Eleven
Industry: Convenience Stores
Initial Investment: $53K – $1.1M
Average Annual Revenue: $1M+ per location
As one of the world’s largest convenience store chains, 7-Eleven offers an affordable initial investment with a strong profit potential.
6. Planet Fitness
Industry: Fitness
Initial Investment: $1M – $4M
Average Annual Revenue: $1.5M per location
With its “no judgement zone” appeal, Planet Fitness continues to attract customers in the fitness space, making it a profitable franchise to consider.
7. Subway
Industry: Fast Food
Initial Investment: $150K – $328K
Average Annual Revenue: $416K per location
Subway’s focus on healthy fast food keeps it relevant, and its lower upfront costs make it a solid investment for newcomers.
8. Ace Hardware
Industry: Retail Hardware
Initial Investment: $272K – $1.6M
Average Annual Revenue: $1M+ per location
Ace Hardware benefits from a dedicated customer base of DIY enthusiasts and home improvement lovers.
9. Taco Bell
Industry: Fast Food
Initial Investment: $530K – $3M
Average Annual Revenue: $1.6M per location
Taco Bell continues to lead the fast food industry, appealing to customers with affordable Mexican-inspired menu options.
10. Supercuts
Industry: Hair Care
Initial Investment: $144K – $306K
Average Annual Revenue: $262K per location
Supercuts is a budget-friendly option for those entering the hair care industry. Its recurring customer base leads to steady profits.
11. Kumon
Industry: Education
Initial Investment: $74K – $156K
Average Annual Revenue: $558K per location
The demand for tutoring and after-school programs continues to rise, making Kumon a highly profitable education franchise.
12. Jan-Pro
Industry: Commercial Cleaning
Initial Investment: $3.5K – $60K
Average Annual Revenue: $1M+ per location
Jan-Pro offers a scalable business model with recurring revenue from contracts, making it an appealing option for entrepreneurs.
13. Mathnasium
Industry: Education
Initial Investment: $112K – $149K
Average Annual Revenue: $350K per location
Mathnasium focuses on tutoring services for K-12 students, tapping into the ongoing demand for supplemental education.
14. Jiffy Lube
Industry: Automotive Services
Initial Investment: $200K – $500K
Average Annual Revenue: $710K per location
Jiffy Lube remains a leader in the auto services industry, with consistent demand for maintenance services.
15. Great Clips
Industry: Hair Care
Initial Investment: $136K – $260K
Average Annual Revenue: $355K per location
Great Clips offers a steady flow of business due to its affordable pricing and frequent customers.
16. BrightStar Care
Industry: Home Health Care
Initial Investment: $105K – $181K
With the growing need for senior care, BrightStar Care is poised for even more profitability in 2024.
17. Sports Clips
Industry: Hair Care
Initial Investment: $224K – $372K
Sports Clips taps into the niche market of men’s grooming, offering a unique twist on haircuts.
18. Snap-on Tools
Industry: Retail Tools
Initial Investment: $169K – $382K
Snap-on Tools is known for its high-quality products, attracting loyal customers and delivering consistent revenue.
19. Servpro
Industry: Restoration Services
Initial Investment: $160K – $230K
Servpro specializes in disaster recovery and restoration, an essential service that continues to grow.
20. Buffalo Wild Wings
Industry: Restaurant
Initial Investment: $2M – $4M
This popular sports bar chain remains a top franchise for restaurant owners seeking big profits.
21-30: More Profitable Franchises to Consider
21. MaidPro – Cleaning services
22. FASTSIGNS – Custom sign manufacturing
23. Merry Maids – Residential cleaning
24. The Goddard School – Early childhood education
25. Smoothie King – Healthy beverages
26. Jazzercise – Fitness
27. Massage Envy – Spa and wellness services
28. Firehouse Subs – Fast food
29. IHOP – Casual dining
30. Big O Tires – Auto repair and tires
Conclusion
Starting a profitable franchise in 2024 comes down to selecting the right brand, understanding the initial investment, and being prepared to put in the effort required to grow your business. Each franchise on this list offers a unique opportunity with varying levels of investment and potential profit. The best part? Whether you’re drawn to fast food, fitness, or education, there’s a franchise that fits your goals.
Frequently Asked Questions (FAQs)
How much money do you need to start a franchise?
The cost to start a franchise varies widely, from as little as $10K to over $1M, depending on the brand and industry.
What are the most profitable franchises in 2024?
Fast food brands like McDonald’s and Taco Bell tend to be the most profitable due to their global brand recognition and large customer bases.
How long does it take to become profitable in a franchise?
The time to profitability depends on the industry, location, and how well the franchise is managed. It could take anywhere from 6 months to 3 years.
0 Comments