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10 best franchises to own 2024

Update June 11, 2024

The Franchise Direct’s “Top 100 Global Franchises” list shows that franchise opportunities remain strong in 2024.¹ Many well-known franchises from 2023 keep their top spots. And new ones are quickly climbing up the list. Rankings consider sales, growth in locations, company experience, and help for franchisees.¹ Entrepreneur’s 45th Franchise 500® ranking reveals the industry’s challenges and changes in the past year. It also shows how businesses have adapted and grown. This ranking is the world’s leading source for those thinking about buying a franchise.¹

Key Takeaways

The franchise industry has shown strong growth and adaptation, with new categories like mental health services, coworking spaces, and boba tea emerging as franchise opportunities.¹
The Franchise 500 ranking evaluates franchises based on over 150 data points, including factors like franchise fee, total investment, and growth rate.¹
Taco Bell, Jersey Mike’s Subs, and Popeyes Louisiana Kitchen are among the top franchises listed in the Franchise 500 ranking.¹
The franchise industry is expected to see a 1.9% growth in 2024, according to the International Franchise Association (IFA).²
Successful franchises have a less than 1% failure rate and are 63.3% more likely to succeed than the average small business over a three-year period.³

What Makes a Good Franchise?

Finding the best franchises to own involves critical factors. This includes brand recognition and reputation. These aspects can pull in customers and build trust in the franchise.⁴ A proven business model is also key. It should show a history of success and the ability to duplicate it in different locations.⁴

Brand Recognition and Reputation

A strong, well-known brand benefits franchisees greatly. It helps attract more customers and build their confidence. Franchises with widely recognized brands often see more customer traffic and loyalty.⁴

Proven Business Model

The proven business model is vital. It should have a history of success. This means business processes that work, a clear value proposition, and support for franchisees are in place.⁴

Such a model provides a solid start for franchisees. It supports their business growth. By offering these aspects, success becomes more achievable.⁴

Strong Franchisor Support

Good franchisor support is crucial too. It involves solid training, help with marketing and operations, and a focus on the system’s growth. Franchise opportunities with strong support attract more franchisees.⁴

They offer a wide range of resources and guidance. This helps new and existing franchisees grow their businesses. Understanding these factors helps prospective franchisees select the best franchises to own. It guides their choices, ensuring they meet their goals and resources.⁴

Overview of the Franchise Industry in 2024

In 2024, the franchise industry is set to keep growing strong. It will add over 15,000 units, reaching 821,000 establishments. This growth will bring nearly 9 million jobs and contribute $545.8 billion to the GDP.⁵ New franchise categories, such as mental health services, coworking spaces, and boba tea, are emerging. This shows the industry can change with what consumers want.

Trends and Opportunities

For 2024, the franchise industry looks to jump on upcoming trends and opportunities. Franchise fees range from $20,000 to $50,000, making it easier for more people to own a franchise. This year, the wellness economy will grow big time. The Global Wellness Institute thinks it will reach $8.5 trillion by 2027. This opens the door for many health and wellness franchise options.

Challenges and Risks

The franchise world, however, isn’t without its challenges. There will be ups and downs in the economy, new technologies to keep up with, and rules to follow. Businesses that can handle these issues and back up their franchisees will do well in the future.

So, the franchise business in 2024 is full of trends, chances, and risks. Those who can tackle these challenges will see their franchises continue to grow and succeed.⁶⁵

Evaluation Criteria for the Best Franchises to Own

When checking out top franchises, you need to look at a few things. The Entrepreneur Franchise 500 ranking lists important factors. These include costs, the level of training, and the franchise’s potential to grow.⁷

Costs and Fees

The price to join a franchise can be big, from tens of thousands to over a hundred grand.⁷ You’ll also need to think about the total cost to start and run the business. Plus, there are ongoing fees which are just as crucial.⁷

Training and Support

How well the franchisor trains and supports you really matters. They’ll also guide how things are run. This includes the hours you’re open, how your place looks, and what you sell.⁷

Growth and Expansion Potential

A franchise’s potential for growth is key. This includes how many units are already running and if they’re growing.⁷ Firms can continue for up to 20 years, but you may not always get a chance to renew. Also, franchises may end for different reasons. So, a firm’s growth history is a big thing to look at.⁷

Top Food Franchises for 2024

The franchise industry is full of life, presenting several food franchises as key players for 2024. Among the top picks for this year are Taco Bell, Marco’s Pizza, and Big Chicken. These choices have shown great potential and have many people interested in owning them.

Taco Bell

With more than 7,000 locations⁸, Taco Bell reigns as a leader in quick Mexican food franchises. It’s a part of the Yum! Brands family. Taco Bell stands out as a top franchise because of its strong brand, successful business model, and the support it offers to franchisees.⁹

Marco’s Pizza

Marco’s Pizza boasts over 1,150 franchises⁹ and is known for its innovation. It was the first major pizza delivery brand to introduce crustless pizza. This makes Marco’s Pizza an appealing franchise to join, with a focus on quality, service, and helping franchisees succeed.

Big Chicken

Created by basketball legend Shaquille O’Neal, Big Chicken is a new venture swiftly growing. It has 15 locations already and many more being planned¹⁰. Offering a combination of a famous face and new menu items, Big Chicken is seen as a bright opportunity in the food franchise market.

Best Franchises to Own in the Coffee Industry

The research shows that Cinnabon and PJ’s Coffee make the top choices for coffee franchises in 2024. Cinnabon has over 1,500 locations worldwide. It’s famous for its tasty cinnamon rolls and bakery goods.¹¹ PJ’s Coffee, started in 1978, is under Ballard Brands. They serve various types of coffee, along with fresh pastries. Franchisees can even choose to have a drive-thru, which adds more profit.¹² PJ’s currently has 140 stores open with 200 more planned.

Cinnabon

Cinnabon leads in the coffee and bakery world with its beloved cinnamon rolls and treats. It has 1,500 stores around the globe.¹¹ The brand is well-known and liked for its smell and high-quality foods. Choosing Cinnabon offers a strong brand, proven success, and support for franchisees.

PJ’s Coffee

PJ’s Coffee is from New Orleans and is growing fast. They have 140 stores and are working on over 200 more.¹² Their menu includes various coffees and pastries. Quality products and quick drive-thru service have made them popular with both franchisees and customers.

Franchise	Total Initial Investment	Franchise Fee
Cinnabon	N/A	N/A
PJ’s Coffee	$168,900 to $566,000	$35,000
Aroma Joe’s Coffee	$256,500 to $702,000	$15,000
Maui Wowi Hawaiian Coffees and Smoothies	$63,900 to $554,000	$30,000
Dunkin’ (Previously Dunkin’ Donuts)	$395,500 to $1,597,200	$40,000 to $90,000
The Coffee Bean and Tea Leaf	$183,250 to $615,500	N/A
Scooter’s Coffee	$331,000 to $638,000	$40,000
Cafe2U	$109,146 to $154,621	$25,000
Biggby Coffee	$186,850 to $369,100	$15,000
Dunn Brothers Coffee	$385,200 to $609,600	$37,500
Coffee Beanery	$185,000 to $472,500	$15,000
Cafe Barbera	$187,000 to $305,000	$35,000
The Human Bean	$211,625 to $738,375	$30,000
Brioche Doree	$250,000 and up	5% royalty fee
Xpresso Delight	N/A	N/A

Promising Franchises in the Restaurant Sector

Arby’s is highlighted as a top pick in the restaurant franchise sector for 2024. This brand is known globally as the second-largest seller of sandwiches. It has seen its business grow a lot, especially through drive-thru services, in the last three years.² Arby’s is part of the Inspire Brands family. Its franchisees sell items like roast beef sandwiches, crispy chicken sandwiches, and desserts. They have over 3,500 locations in nine countries.¹³ Because of its steady growth and success, Arby’s seems like a smart choice for anyone thinking about the restaurant business.

Arby’s success is tied to its response to the increasing demand for drive-thru service. This became even more important during the COVID-19 pandemic. Many people wanted meals that were both quick and safe.² The brand stands out by offering a menu that’s different and interesting. It’s focused on top-quality roast beef and special sandwiches. This has helped it gain popularity with people interested in opening their own Arby’s.¹³

Being part of the Inspire Brands family means Arby’s gets lots of support. This support comes from a big parent company. It helps franchisees with things like marketing and making sure they have enough supplies.¹³ Such support is often what makes a franchise system work well.¹³

Arby’s is doing well, growing fast, and is easily recognized. This makes it a great choice for investing in 2024. Its menu, drive-thru focus, and the support it gets from the parent company all help. They make it a strong contender to meet the industry’s changing needs.²¹³

best franchises to own in the Retail Industry

Great Clips is top in the retail industry for 2024, says the latest research.¹⁴ It runs over 4,400 hair salons in North America. These salons offer affordable haircuts for both men and women.¹⁴ Great Clips stands out for having a very low rate of franchisee failure. This success is due to careful selection by the company’s leaders.¹⁴ Nearly half of all franchised hair salons in the U.S. are part of the Great Clips family.

Franchise Buying Tips and Strategies

Buying a franchise can be both thrilling and filled with decisions. There are several vital tips and strategies to keep in mind. First off, make sure you do your homework thoroughly. This means carefully reading the Franchise Disclosure Document (FDD) and talking to people who have run the franchise before.

Getting advice from experts, like a franchise attorney and an accountant, is a smart move. They help you understand the legal and money matters in the franchise agreement. This way, you know all about the costs and what’s expected from you.⁷

It’s key to know every part of the franchise agreement. Understand the starting fees, which can be from tens of thousands to hundreds of thousands,⁷ and how long the contract lasts, up to 20 years. Remember, the franchisor might change the rules over time too.⁷ You’ll also pay a part of your earnings as royalty fees and will have to follow the rules they set for things like location and design.⁷

FAQ

What makes a good franchise?

A strong franchise is usually well known and trusted. It follows a business model that’s proven to work. The company that owns the franchise helps a lot, providing training and support. This helps franchisees succeed.

What are the key trends and opportunities in the franchise industry for 2024?

In 2024, new types of franchises are likely to pop up. For example, there might be more places that offer mental health services. This shows how the franchise world keeps up with what’s popular. But, there are challenges too. The industry must deal with economic ups and downs, new tech, and rules.

What are the key factors to consider when evaluating the best franchises to own?

To find the right franchise, check the costs and what support you get. Look at how much the franchise is growing. The money you need to start and run the franchise matters a lot. Training and help from the company are also key to your success.Think about whether the franchise can become even more successful over time. This long-term growth is important.

What are some of the top food franchises to own in 2024?

Famous food franchises for 2024 include Taco Bell and Marco’s Pizza. They’re leaders in their categories and are known for quality. Big Chicken is another option, started by NBA’s Shaquille O’Neal. It’s growing fast, making it an exciting choice.

What are the best franchises to own in the coffee industry for 2024?

In the coffee business, Cinnabon and PJ’s Coffee are great picks for 2024. Many people love Cinnabon’s treats, like their famous cinnamon rolls. PJ’s Coffee is on the rise with a big selection of drinks and food. Franchisees can even have a drive-thru, adding to their success.

What is a promising franchise in the restaurant sector for 2024?

Arby’s stands out for 2024 in restaurants. It’s become very popular, especially for take-out. As part of Inspire Brands, Arby’s offers a wide range of sandwiches and treats. It has over 3,500 locations worldwide.

What is considered one of the best franchises to own in the retail industry for 2024?

Great Clips is a top choice in retail for 2024. It leads the low-cost haircuts space with its thousands of salons. The chance of failing with a Great Clips franchise is very low. This is because they choose their franchisees carefully, making it a great opportunity.

What are the key tips and strategies for those considering purchasing a franchise?

To pick the right franchise, do a lot of research. Read the FDD carefully and talk to other franchise owners. Visiting different locations can give you a feel for the business. Getting advice from a franchise lawyer and accountant is wise. They can help you understand the legal and financial sides of the agreement.It’s crucial to know all the costs and obligations before making a decision. This way, you can choose the best franchise for you with confidence.

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Written by

Noah Davis

Content Writer