1851

The types of franchises that are the most profitable include legacy fast food chains with established followings, as well as low-cost, home-based concepts without the need for a storefront.&nbsp;A reliable way to determine a franchise’s future profitability is by first analyzing the <a href="https://1851franchise.com/top-5-things-to-know-about-item-19-2703545">Item 19</a> of the franchise’s <a href="https://1851franchise.com/what-is-an-fdd-2705192">franchise disclosure document</a> (FDD), which outlines the business’s financial performance. The FDD also provides an approximation of the initial investment (<a href="https://1851franchise.com/the-most-important-items-in-an-fdd-item-7---initial-costs-2712071">Item 7</a>). The upfront costs obviously play a major role in the potential for profitability and should be weighed carefully against a prospect’s available capital and potential financing. Most franchise concepts require initial and continuing fees paid to the franchisor, which can be found in <a href="https://1851franchise.com/initial-and-ongoing-costs-fdd-items-5-7-2703065">Items 5 and 6</a> of the FDD. These fees will also have an impact on the potential ROI.Based on those qualifications, <a href="https://www.nerdwallet.com/article/small-business/most-profitable-franchises?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-types-of-franchises-are-most-profitable-2717138" target="_blank" rel="nofollow">Nerdwallet</a> outlines the top five most profitable franchise concepts as follows:<h4><a href="https://www.mcdonalds.com/us/en-us/about-us/franchising/franchising-faq.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-types-of-franchises-are-most-profitable-2717138" target="_blank" rel="nofollow">McDonald’s</a></h4><ul><li>Startup costs: $1,300,000-$2,300,000</li></ul><h4><a href="https://www.dunkinfranchising.com/franchisee/en.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-types-of-franchises-are-most-profitable-2717138" target="_blank" rel="nofollow">Dunkin’</a></h4><ul><li>Startup costs: $200,000-$1,700,000</li></ul><h4><a href="https://www.theupsstorefranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-types-of-franchises-are-most-profitable-2717138" target="_blank" rel="nofollow">The UPS Store</a></h4><ul><li>Startup costs: $138,000-$567,000</li></ul><h4><a href="https://www.dreamvacationsfranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-types-of-franchises-are-most-profitable-2717138" target="_blank" rel="nofollow">Dream Vacations</a></h4><ul><li>Startup costs: $1,795-$20,300</li></ul><h4><a href="https://www.maids.com/franchise/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-types-of-franchises-are-most-profitable-2717138" target="_blank" rel="nofollow">The Maids</a></h4><ul><li>Startup costs: $48,950-$124,950</li></ul>Several variables combine to determine a franchise’s profitability, and many depend on the individual prospective owner/operator. To understand these factors, enlist the help of a <a href="https://1851franchise.com/how-a-franchise-consultant-can-help-put-you-on-the-path-to-success-2430">knowledgeable franchise consultant</a>, accountant or another financial advisor. These experts will evaluate the prospect’s specific situation and create a reasonable projection that details the return on investment the owner can expect to achieve.Related articles:<ul><li><a href="https://1851franchise.com/what-are-the-best-franchises-to-invest-in-2715528#stories">What Are the Best Franchises To Invest In?</a></li><li><a href="https://1851franchise.com/what-are-the-best-franchises-to-invest-in-right-now-2716400">What Are the Best Franchises To Invest in Right Now?</a></li><li><a href="https://1851franchise.com/can-you-get-rich-owning-franchises-2715618">Can You Get Rich Owning Franchises?</a></li><li><a href="https://1851franchise.com/which-franchises-have-the-best-roi-in-india-2715222">Which Franchises Have The Best ROI in India?</a></li></ul>

What Types of Franchises Are Most Profitable?

1851 Franchise

Franchises that consistently rank highest in metrics like revenue and growth potential include fast food chains, coffee shops and home services.

what-types-of-franchises-are-most-profitable

Famous Dave's

Famous Dave’s Rolls Out Smaller Prototype To Expand Access and Lower Costs for Franchisees

Franchise Times: Famous Dave’s Rolls Out Smaller Prototype To Expand Access and Lower Costs for Franchisees

famous-daves-small-footprint-franchise-prototype

Strategic Franchising

Are You Ready for Franchise Ownership? Self-Assessment Checklist

are-you-ready-for-franchise-ownership-self-assessment-checklist

Pet Wants

New to Franchising? Here’s Why Pet Wants Is a Great Place to Start

new-to-franchising-heres-why-pet-wants-is-a-great-place-to-start

Understanding the Franchise Fee: What It Covers and Why It’s Worth It

understanding-the-franchise-fee-what-it-covers-and-why-its-worth-it

Right at Home

NorthcentralPa.com: Right at Home Targets Expansion in State College, Pennsylvania

right-at-home-franchise-expands-to-state-college-pa

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Pizza Hut - EYM Group - Chapter 11 Bankruptcy - 77 Pizza Hut Locations Sold - 1851 Franchise

77 Pizza Hut Locations Sold After Franchisee Bankruptcy Filing

pizza-hut-franchisee-bankruptcy-eym-group

Jersey Mike's - Blackstone - Global Growth - 1851 Franchise

Jersey Mike’s Ramps Up Global Growth Following Blackstone Acquisition

jersey-mikes-blackstone-growth

Layoffs Surge to Pandemic-Era Highs, Opening Doors for Franchise Growth

layoffs-surge-to-pandemic-era-highs-opening-doors-for-franchise-growth

FAT Brands Becomes First Restaurant Franchise To Accept Bitcoin for Royalty Payments

fat-brands-becomes-first-restaurant-franchise-to-accept-bitcoin-for-royalty-payments

Yum! Brands CEO David Gibbs To Retire in 2026 After 36 Years With the Company

yum-brands-ceo-david-gibbs-to-retire-in-2026-after-36-years-with-the-company

Paris Baguette Ranks Among Top Franchises on Entrepreneur’s Franchise 500® for 2025 - 1851 Franchise

Paris Baguette Ranks Among Top Franchises on Entrepreneur’s Franchise 500® for 2025

paris-baguette-ranks-among-top-franchises-on-entrepreneurs-franchise-500-for-2025

1851 Agg - McDonald's Sales Decline Expansion Continues - 1851 Franchise

McDonald’s Franchisees Feel the Pressure as Sales Decline and Expansion Continues

mcdonalds-franchisees-feel-the-pressure-as-sales-decline-and-expansion-continues

Tariff Tensions Threaten U.S. Restaurants with Rising Costs and Supply Chain Disruptions

tariff-tensions-threaten-us-restaurants-with-rising-costs-and-supply-chain-disruptions

Florida Franchisee Reflects on Success and Growth with Sylvan Learning

florida-franchisee-reflects-on-success-and-growth-with-sylvan-learning

Franchisee spotlight graphic with photo of Amanda Moore and USA Ninja Challenge logo

Neonatal ICU Nurse’s Passion for Caring for Children Led Her to Franchise With USA Ninja Challenge

usa-ninja-challenge-amanda-moore-franchise

Franchisee spotlight image with Randy and Sandy Craft, Children's Lighthouse logo on blue background

The Crafts’ Successful Journey from New Parents to Children’s Lighthouse Franchisees

the-crafts-successful-journey-from-new-parents-to-childrens-lighthouse-franchisees

Lindora’s New President Discusses Franchise Growth and the Future of Health and Wellness

lindoras-new-president-discusses-franchise-growth-and-the-future-of-health-and-wellness

Military Veteran and Craft Beer Enthusiast to Bring Voodoo Brewing Co. to Toledo, Ohio

military-veteran-and-craft-beer-enthusiast-to-bring-voodoo-brewing-co-to-toledo-ohio

What Types of Franchises Are Most Profitable?

MORE STORIES LIKE THIS