Deciding to invest in a franchise is a major—and potentially transformative—event. That’s true whether you’re an aspiring entrepreneur or you already have years of experience and are just looking for a new challenge. Every day, people are realizing the potential of franchising, typing things like “franchise opportunities near me” into Google and seeing what it returns.
If you’re looking for the best franchises to own, we can imagine you have some questions. You’ll want to know, for example, what industries are primed to grow throughout 2023 and beyond, as well as what kinds of franchises tend to make the most money.
In this blog, we’re delving into these exact questions, to give you some guidance as you seek out the perfect opportunity for you, an opportunity you can feel confident in.
Where Can I Find Up and Coming Franchises?
There are plenty of resources out there for identifying up and coming franchises you might be interested in, so it really depends on who you ask. We’ve collected a few handy resources to help you evaluate existing opportunities and find low-cost franchises with high profit potential.
To give you an idea of the wide range of industries that contain up and coming franchises, we’ll first look at lists published by Entrepreneur and NerdWallet. Then, we’ll look at some of the options available through FranchiseOpportunities.com.
Entrepreneur’s Franchise 500
According to Entrepreneur, the fastest-growing franchises in 2022 include a mixture of familiar and not-so-familiar brands within their top 10, across industries like convenience/retail, real estate, food service, home services, fitness, and more.
Their top ten:
- Century 21 Real Estate
- Stratus Building Solutions
- Jan-Pro Cleaning and Disinfecting
- Sign Gypsies
- Goosehead Insurance
- F45 Training
For comparison’s sake, NerdWallet put together a similar list of the year’s most attractive franchise opportunities, including entries from many of the same industries identified in Entrepreneur’s list.
Here’s NerdWallet’s top 10:
- Anytime Fitness
- Planet Fitness
- Orangetheory Fitness
- Primrose Schools
- Kiddie Academy
- Kumon Math and Reading Centers
- Ace Hardware
At FranchiseOpportunities.com, we’ve built a comprehensive directory to help you find the perfect franchise to invest in. You can search for and evaluate different opportunities based on a range of factors, so you can find strategic opportunities that align with your passions, interests and, of course, budget.
- Popularity and Demand: Start by browsing our 50 Most Popular Franchises to Own in 2023 for some exciting and unique opportunities you can invest in today.
- Industry: We have franchise opportunities across dozens of different industries, so you can focus on businesses you’ll actually want to operate!
- Location: Browse franchise opportunities in your area, in a particular state, or even franchises that lend themselves to working from home.
- Investment Level: It’s important to not overextend yourself based on what you can afford to spend up front as well as over time. Whether you’re looking specifically for low-cost franchises, high-investment franchises, or something in between, opportunities await!
Which Franchise Category Has the Highest Anticipated Growth Rate?
With so many different types of franchises available, you’re probably wondering which franchise categories are expected to see the most growth through 2023 and beyond. According to Entrepreneur, the five hottest industries for franchising are:
- Self Care. Self care represents a huge (and growing) trend with a staggering market valued at over $85 billion. At FranchiseOpportunities.com, you can find self care franchises within our Beauty and Health and Fitness categories, among others.
- Electronics and Gaming. With each passing year, we’re spending more time staring at our personal devices’ screens and spending more than ever before on streaming entertainment. Find electronics and gaming franchises in our Computer and Internet and Entertainment categories, among others.
- Pet Care. If you’ve spent much time on social media, it will come as no surprise that people adore their pets. The fact that people spend, on average, at least $1,300 on pet care (if they only own a single pet, that is) makes this a category brimming with potential. Browse our Pet category.
- Senior Care. For many people, it’s not a matter of if but instead when someone they love will require senior care. In-home care is a rapidly growing industry, as it enables people to care for their loved ones in a familiar and comfortable environment. Browse our Senior Care category.
- Home Improvement. Homeowners are always looking for that next home improvement project, whether it’s as a hobby or a strategy for increasing equity. With many people becoming first-time homeowners over the past few years, investing in the kind of franchise that will help these homeowners create the house of their dreams is a wise move for any aspiring franchisee. Browse our Home Services and Repair category.
What Are the Fastest-Growing Franchise Restaurants?
While the category may not have made the Top 5 list shared above, another category that’s worth exploring is restaurants, especially fast food and quick-service options. It’s an industry that’s proven its profitability and demand over time, and continues to grow, making it a more-than-worthy “Honorable Mention.”
In fact, Statista data shows that the quick-service restaurant industry represents the “largest segment of the franchising industry output,” comprising “over 276 billion U.S. dollars of the industry’s total economic output.”
According to the Entrepreneur Franchise 500 for 2023, Taco Bell tops the list as the most profitable franchise in this popular (and crowded) category.
What Type of Franchise Makes the Most Money?
Unfortunately, there is no straight answer. If only it were so simple! While this question is far too nuanced for a blanket-type answer, there are clear steps you can take to identify a franchise with high profit potential.
There are actually two questions here, since “making money” means striking the right balance between investment costs and other expenses on one side of the equation, and profit potential on the other.
Let’s address investment costs first. Depending on your budget, you can evaluate franchise opportunities by their investment level. At FranchiseOpportunities.com, you can view franchises with investment levels of under $10,000 through levels of $500,000 or more, and everything in-between. This way, you can avoid overextending yourself and creating extra anxiety.
Then, there’s the question of potential profit. While investment costs are typically pretty concrete (we list exactly how much cash you’ll need to invest), profit is more complicated. That’s where the Franchise Disclosure Document (FDD) comes into play. This document outlines a wide range of details of how the franchisor-franchisee relationship will be conducted, including day-to-day, operational details as well as big-picture strategies.
Of the 23 points within the FDD, it’s the 19th item—Financial Performance Representations, or FPR—that provides the clearest indicators of a franchise’s future profitability. Largely based on historic performance and market/industry projections, you can typically gain a lot of meaningful insights here. This section will typically include charts or tables to help make the information make sense and to inform any projections.
Can Owning a Franchise Make You Rich?
If you identify the right opportunity and play your cards right, franchising certainly can make you rich. “Rich,” of course, can mean a lot of different things to people, so even if you don’t become an overnight sensation, you can still make a very healthy profit! It just takes the right mindset, some business acumen, and the right team to help and support you.
Start your journey today at FranchiseOpportunities.com, where you can browse hundreds if not thousands of available franchises across a range of investment levels and industries. You can also find plenty of helpful resources if you’re still determining whether franchising might be right for you.