Hottest Businesses to Franchise in America
Whether in New York, Miami, or Detroit, consumers can always count on familiar options, be it fast food chains, fast casual dining, ice cream shops, fitness studios, or even hair salons. It is for this reason that rather than open up an independent establishment, tens of thousands of entrepreneurs instead choose the franchise option.
In exchange for an initial fee and ongoing royalties, franchisees effectively buy the rights to operate a franchisor’s business. They also receive training, support, and additional services from their parent company. Franchise-driven employment, according to the International Franchise Association, grew by 3.7% in 2018, compared to U.S. total nonfarm employment growth of 1.9%. The IFA estimates that at the end of 2018, there were 760,000 franchised locations across the country.
Some franchise chains have been extremely successful in the past few years. A few of these success stories are new to franchising, while others opened their first franchise years ago. According to data collected by Entrepreneur Magazine, there are 20 businesses that expanded the number of their U.S.-based franchised locations by over 50% in just the last five years. Several companies have added hundreds of franchises in just a few years.
Every franchising agreement is different, and the potential for success for franchisees depends on their initial startup investment and later fees, the support they receive from their franchisor, brand strength, and the financial stability of their parent company.
To determine the fastest growing franchises, 24/7 Wall St. ranked businesses based on franchise establishment growth in the United States from 2013 to 2018 with data from Entrepreneur magazine. Only companies included in Entrepreneur’s 40th annual Franchise 500 ranking with at least 500 U.S. franchise establishments were considered.