A franchise is a type of business where independent business owners operate a single location using a more giant corporation’s brand name, logo, and products. The franchisee is a third-party owner and operator of the business sites. In contrast, the franchiser is the owner of the more enormous corporation that offers the rights to license their business. Read along to learn more about the most profitable franchises in sports and fast food.

Most Profitable Franchises

We are surrounded by franchises daily. Most of your money goes to businesses using the franchise model. A franchise is a company in which an individual has the legal right to use the brand name, services, goods, and logo to run businesses at various locations in exchange for specific terms and an annual license fee. A franchiser is a business that sells a franchisee the rights to a particular brand.

One method for firms to expand into new areas and worldwide markets is through franchises. Franchisers profit by fusing their business methods with the local history, culture, religion, and customs by issuing licenses to residents of the area. By becoming a franchisee, business owners, on the other hand, profit from the popularity and fanaticism of the brand. Consumers have reportedly been found to choose tried-and-true brands over new ones. Similarly, customers anticipate that businesses will offer the same high-quality goods everywhere they do business, no matter the locale. Consequently, the franchiser needs proper knowledge transfer and commercial knowledge.

Here are some of the most profitable franchises you can go for:

#1. 7-Eleven

7-Eleven is experiencing unheard-of expansion as the leading convenience retailer. You may open one of its turnkey stores in three to six months after applying, testing, and receiving training.

#2. The UPS Store

The franchise with the highest ranking in the business services sector is The UPS Store. It touts stability in its finances, a well-known brand, and committed training and assistance, and 84% of Americans reside within 10 miles of a UPS Store. It is one of the most profitable franchises you can go for in America.

#3. Great Clips

The 30-year-old company Great Clips offers its franchisees the most recent training and technologies. It has made significant financial investments in market research to give clients the finest service and experience possible. It is one of the most profitable franchises you can opt for.

#4. Kumon Math & Reading Centers

The Entrepreneur’s Franchise 500 ranking consistently has Kumon in the top 10. This franchise is the best one to purchase because it has a modest franchise cost and the potential for high profitability in the age of distance learning.

#5. Sport Clips

With a high continuity rate of 95.4% over the previous five years, Sport Clips is expanding and demonstrating its strength and durability. This indicates that more than 95.4% of all the stores that opened during the course of the last five years are still open today. It credits its consistency to relatively modest beginning costs, reliable support networks, and ongoing store performance monitoring. It is one of the most profitable franchises you can go for.

#6. Ace Hardware

The big-box home improvements businesses like Home Depot and Lowe’s lack the neighborhood atmosphere that Ace Hardware conveys. This franchise takes great pride in its top-notch customer service and house-brand goods.

#7. Interim HealthCare

As a division of Caring Brands International, Interim Healthcare launched its franchising program in 1966. Due to the baby boomer generation’s aging, Interim Healthcare offers services in the healthcare sector, one of the fastest-growing businesses. The franchise provides two service categories: home care, hospice care, and associated staffing services. Franchisees receive daily management of operations and training from the Interim. Entrepreneur’s 500 franchise ranking ranked the business first in the senior care category. The average yearly revenue for Interim HealthCare is $4.1 million.

Most Profitable Franchises Sports

You can confidently assert two things about Americans: they adore sports, with football being their clear favorite. Just take a peek at what the world’s wealthiest sports clubs are worth. Here are some of the most profitable franchises sports you need to know:

#1. Anytime Fitness

One of the best-performing fitness businesses available today is Anytime Fitness. With more than 4 million members worldwide, Anytime Fitness has a well-known brand but modest operational expenses. It is one of the most profitable franchises in sports you can go for.

#2. Major League Baseball (MLB)

One of the most well-liked sports leagues in the world now is the American League. For more than a century, Prominent League Baseball has been among the world’s oldest major professional sports leagues. In America, baseball is as popular as cricket is in India. On the other hand, a baseball field hosted the sole All-Star cricket competition in America. The league is the third-richest sports league in the world, with an annual revenue of $10 billion. Western nations like the United States and Canada like watching baseball. But this activity is well-liked. It brings in $10 billion in revenue annually. The league is the third-richest sports league in the world, with an annual income of $10 billion.

#3. National Football League (NFL)

The National Football League (NFL) is a professional American football league. American football is at its highest point in the world at this point. The Miami Dolphins, Houston Texans, and Los Angeles Chargers are also present. NFL is one of the most profitable franchises in sports you can go for.

#4. National Hockey League (NHL)

On a list of the wealthiest sports leagues in the world, the National Hockey League (NHL) is placed sixth. Few Indians are familiar with the NHL. In India, hockey is well-liked, but cricket has always been more popular.

The NHL is the sixth-largest hockey league in the world. For the 2018–19 season, revenue increased to $5.08 billion. It is an ice hockey league, and the regulations differ slightly from field hockey. The league enjoys enormous popularity in both Canada and the US. The NHL is sixth in the world in terms of income, with $4.8 billion in sales. It is one of the most profitable franchises in fast food you can go for.

#5. La Liga Santander (La Liga)

One of the wealthiest sports leagues in the world and ranked eighth is the Spanish football league, La Liga. In La Liga, top European clubs like Real Madrid, Barcelona, Atlético Madrid, Sevilla, Valencia, and Villarreal compete. La Liga earns $4.5 billion annually in income. The top football league in Spain is this one. La Liga makes money from player sales, sponsorship agreements, match ticket sales, and, most significantly, broadcasting agreements.

It requires more physical exertion than association football; hence protective clothing and gear are needed. The current estimate for league revenue is for it to reach $16 billion in 2021, and that sum is only anticipated to increase. The National Football League is the richest and most influential sports league on the planet. The league made $16 billion in revenue in 2021, which is anticipated to increase. The National Football League is the richest and most significant sports league in the world as a result.

#6. National Basketball Association (NBA)

A top-tier professional basketball league in North America is called the NBA, or National Basketball Association. The NBA is the most well-known and prosperous sports league in the world. LeBron James, Anthony, and Butler are just a few sports figures that have gained widespread notoriety. Miami Heat, Boston Celtics, and the Minneapolis/Los Angeles Lakers all have a large international following. The NBA brings about $8 billion annually.

The NBA is the most renowned league in the world, and its players are among the richest in the world. All three LeBron James, Anthony, and Butler are world-renowned sports figures.  It has agreements in place with national television broadcasters that will bring in $500 million from global media. The NBA team is valued at $1 billion.

#7. English Premier League (EPL)

Most people consider the English Premier Competition, or EPL, the most challenging league in professional football. No EPL team can guarantee success, unlike Serie A and Bundesliga. A squad that has dominated the league for most of the season is still capable of placing in the bottom half of the standings. Table places and champions are continually changing in this league. Millionaires and billionaires have long held the clubs. In the United States, there is no such thing as a fan-controlled team. Many people have focused on how much money EPL clubs spend on personnel and players. With a yearly revenue of $5.3 billion, the league is very profitable.

Although they appear to be a great source of revenue, franchises are expensive. Typically, a startup investment is needed to launch the business. Franchise fees and other startup expenses are included.

Most Profitable Franchises Fast Food

Food is substantial to humans and can not be neglected. Here are some most profitable franchises fast food:

#1. McDonald’s

McDonald’s is one of the most profitable franchises in fast food. Although, You must make a sizable upfront expenditure if you want your golden arches. However, you get fame, brand awareness, and years of expertise in the fast-food sector with that investment. It is one of the most profitable franchises in fast food you can go for.

#2. Dunkin’

Despite dropping the “Donuts” from its name, Dunkin’ is still a well-known company with stores in 32 countries. According to Brand Keys’ Customer Loyalty Engagement Index, it has the highest level of customer loyalty. Additionally, they provide training and help with site selection, building, operations, management, and marketing to their franchisees.

#3. Popeyes

According to Entrepreneur’s Franchise 500 Rankings, Popeyes is routinely among the best businesses to own. It is a well-known fast-food company with a strong global presence, effective marketing tactics, and well-defined fundamental values. It is one of the most profitable franchises in fast food you can go for.

#4. Subway

Doctor’s Associates LLC franchises Subway. The company was first franchised in 1974, and its headquarters are in Milford, Connecticut. The eatery exports foot-long, six-inch flatbread sandwiches to several countries. Annual revenue of $400,000 is generated by the typical subway franchise. From its franchised operations, Subway brought in about $10.2 billion in sales in 2019. It is one of the most profitable franchises in fast food you can go for.

#5. Sonic Drive-In

This drive-in restaurant franchise takes great pleasure in its excellent operations and customer support. Franchise owners for this brand reported average gross sales of $1,341,000.

#6. Taco Bell

Since it has existed for 50 years, this quick-service restaurant chain has grown financially secure and well-known. It offers you access to restaurant resources and a network of more than 350 franchisees that are experts in the industry. They also include a tested operating system. It is one of the most profitable franchises in fast food you can go for.

#7. Freddy’s Frozen Custard and Steakburgers

The burgers and freshly-churned custard at this fast-casual restaurant are legendary. Depending on the location and whether you’re buying or renting property, you can anticipate your restaurant opening in eight to 18 months after your original investment.

#8. Tim Hortons

Tim Hortons USA Inc., a fast-food business with Canadian roots, today has locations all over the world. Along with pastries, sandwiches, and soups, the restaurant serves coffee and other beverages. Kiosks and traditional stores can be found in stores all around the world. In 2020, the franchisor generated $2.81 billion in revenue.

#9. Culver’s Butterburgers and Frozen Custard

Since its establishment in 1984, Culver’s has been a well-known name in the burger and custard industry. It is a leading franchise with a proven operating system that has more than 35 years of expertise.

#10. Nothing Bundt Cakes

It is one of the most profitable franchises in fast food you can go for. Despite being a franchise, this bakery stands out because it has a “Mom and Pop shop” atmosphere. There are locations all throughout the country, and its cakes have been highlighted in well-known publications like Food and Wine Magazine, “Unwrapped” on the Food Network, and Franchise Times.

#11. Jersey Mike’s Subs

The Jersey Mike’s Franchise Systems, Inc. (JMFS) subsidiary A Sub Above, LLC began franchising in 1987. Submarine-style sandwiches are available at the restaurant for delivery, takeout, and dine-in. Additionally, the restaurant offers beverages and food-related goods. Over the past three years, there has been a 36.4% growth in franchisees. As you can see that it is one of the most profitable franchises you can opt for. So, why not go for it?

#12. Pizza Hut, owned by Yum! Brands, Inc.

In 1959, Pizza Hut, LLC began franchising its restaurants, and there are more than 17,000 locations worldwide. The trademark of YUM! Brands, Inc. is Pizza Hut (NYSE: YUM). The corporation has opened thousands of foreign outlets, which has allowed it to access the global market. Their sales in China have made it a primary overseas market. The company does have ambitions for development and expansion with its agreements with the NFL and EA Sports. In 2019, Pizza Hut’s average U.S. sales revenue per unit was over $714,000.

#13. The Wendy’s Company

Quality Is Our Recipe, LLC, a franchisee of Wendy’s, is based in Dublin, Ohio. Fast food chains like Wendy’s serve things, including chicken sandwiches, hamburgers, and freebies. Recently, Wendy’s debuted their breakfast menu. The most common orders during COVID-19 were stay-at-home ones. The breakfast sales stabilized the company’s overall profile. It is one of the most profitable franchises in fast food you can go for.

Why Do Most Franchises Fail?

The franchisor offers its products to unqualified, inexperienced, underfunded, or gullible franchisees. Franchisees sometimes have false expectations of the amount of effort involved in running a business.

Business failure can also be caused by various market environment issues, including unsatisfied clients, expensive suppliers, and raw materials, rising bank interest rates, and industry recessions.

Is It Hard To Make Money With a Franchise?

The answer is yes, mainly if a fantastic opportunity arises. The appeal of launching a business by purchasing a franchise is clear.

Although purchasing a franchise may seem like a simple way to make money, the royalties and fees may quickly reduce profit margins. Most franchise owners make less than $50,000 annually.

By investing in a well-known and established franchise company, you can diversify your portfolio and earn enormous returns. A franchise venture combines all the advantages of a large network corporation with the adaptability and independence of a small business.

What Is the Failure Rate of a Franchise?

Franchises have a 5% failure rate, which translates to an astounding 95% success rate, according to a commonly reported figure from a 1987 International Franchise Association (IFA) research.

The franchisor offers its products to franchisees who are unqualified, inexperienced, undercapitalized, or naive. Franchisees sometimes have false expectations of the amount of effort involved in running a business.

Why Own a Franchise?

There are many advantages to owning a franchise. Profiting from the franchiser’s well-known brand while effectively running your own business is possible. The risks generally involved with starting a new firm are eliminated because the most lucrative franchises rarely fail.

Let’s explore the advantages of investing in a franchise opportunity.

#1. Franchises Are Widely Renowned in Their Market Already

Developing sufficient brand awareness to draw in and convert clients is one of the main challenges of starting a business.

Since most franchises have been in business for at least a few years, they have built up enough recognition for your first client to enter within days of your business’s launch. The brand is readily recognizable.

If not, prospective clients merely need to search for your company’s name to find all the locations. This shows prospective customers how reliable and established the brand is. Consider this: Would you visit a store with no reputation or one with several locations? I think the latter.

#2. As a Franchisee, You Generate Higher Profits

Franchisees have a higher chance of making money than independent business owners because they have already built up a network of enterprises and built a name for themselves.

Franchise fees and recurring royalties paid to the franchisers are some of the higher costs associated with that. However, as new clients start coming in practically immediately after opening the shop, you’ll see a strong return on investment.

#3. You Obtain the Franchise-specific Training You Require

Lack of relevant industry experience? Fortunately, you don’t require any. To learn how to manage your brand-new franchise location, you only need to be accessible during the company’s scheduled training sessions.

Franchise owners don’t demand that you have specialized industry knowledge. If you want to create a Kumon location, for instance, Kumon won’t require you to obtain a Master of Arts in teaching. All you need to work with kids is to be a strong reader and mathematician.

#4. You Will Get Support and Guidance in Person

The majority of franchisers send field personnel to independently owned businesses to check on how business is going. You will have a robust support system from your fellow franchisees even if the franchisor doesn’t offer an in-person visit. You can attend networking events (or host your own) to discover fresh approaches to market your establishment, acquire additional staff, and draw in more clients.

#5. Less Risky Franchises Are Available

Franchises are lower-risk business initiatives as a result of all of these advantages. Yes, there is always a chance that your franchise location will fail, but this risk pales in comparison to the one you run when starting your own company.

You can sell the franchise location to someone else if things don’t work out. The brand name is still valuable, after all. It doesn’t follow that someone else can’t run that business just because you can’t.

What Are the Risks of Buying a Franchise?

Buying a franchise sometimes comes with risks that can’t be avoided. Here are some risks that come with buying a franchise:

#1. Fads

Although most well-known and prosperous franchisors have been around for a while, there are some newer franchise brands that are doing exceptionally well. Consumer preferences and business requirements are ever-evolving (and sometimes quickly, as the last year has proven). While young companies haven’t yet demonstrated their resilience, well-established franchise businesses that have endured the test of time are adept at adapting to suit constantly changing customer needs. Investigate each franchise possibility you’re considering in-depth to determine its viability and make sure it’s not merely a passing trend that could fizzle out.

Joining a new franchise system in a competitive market is not a bad idea; just proceed with extreme caution. While there are benefits to entering the market first or securing a premium location, new prospects also carry a higher level of risk. Consider your options, and the amount you need to invest, and always be ready for the outcomes if the trend proves to be short-lived.

#2. Recession Resistance

In challenging times, some businesses fare better than others. Regardless of the health of the economy, there will always be a need for some goods and services. For instance, if a client is having financial trouble, they are least likely to cut out on needs like food, health care, and education. However, discretionary expenditures are more likely to be avoided or drastically restricted during hard financial times.

So when choosing what franchise to buy, figuring out if the goods and services a company offers are necessary or optional is important. Also, pay close attention to the franchisor’s financial background. Pay close attention to how it performed during previous recessions and learn whether any protections are in place in case the economy becomes shaky.

#3. Government Regulations

Government laws are an example of an external risk factor that can be difficult to assess but have a big impact. Every firm is subject to governmental regulations, and it can be challenging to predict how current events will change things. However, new regulations that could instantly bankrupt a company pose a greater risk to growing businesses. Similar to local franchises and fads, investing in a well-known, established brand is generally safer because these are frequently in well-established businesses with lower compliance risk owing to changes in laws and regulations.

When you invest in a small franchise, it’s crucial to keep in mind that risk isn’t confined to a single issue, just like when establishing any kind of business. Your investment may suffer as a result of pressure brought on by a number of risk variables working together. Before you sign on the dotted line for any franchise opportunity, make sure your due diligence process includes identifying potential risks.

#4. Regionality and Seasonality

Each product has a time and place. It very well might, although it depends on the sector and regional preferences, provide you an edge to create a franchise where the franchisor is not yet well-established. Going against the grain could not give you the success you hope for because a franchisor may not be situated in a particular region for a reason. Be prepared to engage in extra advertising and promotional activities if you decide to open your franchise in a market where the brand is less well-known because you won’t have the initial brand equity to rely on. A franchise’s potential should be weighed against the additional marketing costs required upfront.

If you’re unprepared, seasonality may provide a risk. Some seasonal firms see such high sales during their busiest months that their profits can last them the entire year. If purchasing a franchise is your goal, be ready to get started right away during a busy period and set up money for a slower period. To keep the money coming in to support your firm even when profits aren’t as great, you can think about promoting a secondary product. Adding a second seasonal business with the potential to profit from similar clientele is an extra choice.

Planning for downtime and finding strategies to keep the income flowing are essential to your success, whether you’re buying a small franchise in a new location or a company that offers seasonal goods.

Final thoughts

By opening your own company or acquiring a franchise from a well-known company, you can become an entrepreneur. Use a well-known brand to your advantage while taking advantage of the advantages of operating your own business. Franchises can be quite valuable to possess, particularly if you develop a solid business plan that increases your revenues.


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