The Most Profitable Franchises for 2024?
What franchises have the highest revenues? And which franchises are earning millions more than a McDonalds for 1/10th of the investment? Today on Franchise City.
First, how much do big name franchises make, then we'll look at industries where a far lower investment can earn millions more than even a McDonalds.
(Taken from the 2023 disclosure:)
McDonalds highest earning restaurant grossed $16,757,000 and their lowest restaurant did $579,000. The average revenue for a McDonalds was $3,545,000. Cost to buy a franchise is $1,469,000 to $2,503,000, but keep in mind McDonalds has been closing stores over the past years, over 400, so we could be seeing a market saturation point.
Average revenue of a Taco Bell traditional location is 1.9 million and investment is $1,373,600 to $3,370,100. While we have these up lets do a quick overview Chick-fil-A 6.7 million average location, which is actually the highest average revenue in the QSR 50 of all fast food brands. (and a Chick-Fil-A only costs $10k to open we did a video Ill place above and at the end of this video) Wendy's 1.9m average, Dunkin 1.2m, but there are big differences in revenue depending where you open your store some parts of the USA are higher, and Subway estimated around $510K average per year but they are also a lower investment starting at $229,050 to $522,300.
These are the big name franchises most people are familiar with. But are they the most profitable franchises? We just did a video: top 7 mistakes people make buying a franchise and one of those was "familiarity bias". People buy these big name franchises because they assume bigger, more well known means better. But that's not always the case.
Food franchises are more expensive to open, often costing millions of dollars, leases are often expensive and hiring can be a challenge. But what happens if we go outside the food industry and into the services. Think cleaning, construction, flooring, printing. Many of these franchises can be operated from a home office or small warehouse, have fewer employees, lower overhead and a much smaller investment, but can be just as or more profitable then food.
For example, a commercial cleaning master franchise is around a $250k investment and has average sales over 3 million dollars a year. Commercial cleaning isn't a sexy industry but that's equal to a McDonalds average revenue at a fraction of the investment. Owners don't clean the acquire commercial cleaning contracts and then sell those contracts to people looking for a cleaning franchise.
Sign franchises also cost around around $250k and top earners are generating over 14 million dollars annual revenue. The owner manages a team of designers and signage experts and networks with local business.
Some staffing franchises have top owners over 40 million dollars a year with an investment of around $170k. The average gross revenue is over 4 million. In a staffing franchise owners network with local businesses and provide staffing solutions.
You may recall a senior care franchise we referenced a couple of years ago was doing over 54 million dollars a year, that's the highest revenue I have ever seen, however they are no longer disclosing financials so we know senior care can and has reached that amount, but we don't know what it is for 2024. An at home senior care franchise sends caregivers to peoples homes and is a much more scalable model that a single food location. Owners manage teams of caregivers, and often meet with families that are seeking to hire caregivers. Senior care franchises can be started as low as $120k and in some states can be operated from home.
So you can see many industries in 2024 still beat food from a profit perspective but why does that not matter and why should you not really care?
If you were going to become a professional athlete would you look for which sport is the most profitable and then go into that sport? Oh, basketball players are the highest paid, I'm going to become a basketball player even if you might be terrible at basketball. Obviously you pick the sport you are good at, and the money follows. If you became a basketball player but you are 4 feet tall, you wont be successful. You should have become a jockey.
Its the same with franchising, everyone has different abilities, skills, strengths, weaknesses and unique variables in their own city and demographic. Don't look for the most profitable franchise, look for the franchise you are going to best at running, will enjoy running and is best suited to your specific market.
Get Free Assistance from franchise pros: https://www.franchise.city/our-services
Top 7 Reasons to NOT Buy a Franchise • Top 7 Reasons to NOT Buy a Franchise
@FranchiseCityOnline
Watch video The Most Profitable Franchises for 2024? online without registration, duration hours minute second in high quality. This video was added by user Franchise City 01 April 2024, don't forget to share it with your friends and acquaintances, it has been viewed on our site 5,98 once and liked it 17 people.