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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.

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TruBlue Home Service Ally

Turn Your Passion for Helping Others Into a Profitable Business With TruBlue Home Service Ally Franchise

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Right at Home

Right at Home - What To Expect at Right at Home's Discovery Day - 1851 Franchise

What To Expect When Attending Right at Home’s Discovery Day

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Woodhouse Spas

Photo of exterior sign reading "The Woodhouse Day Spa"

How Woodhouse Spas Franchisees Secure Funding Through Preferred Lending Partners

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BooXkeeping

BooXkeeping Welcomes Ryan Schwerdtfeger as Newest Franchisee in Wichita, Kansas

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Fresh Coat

Photo of Fresh Coat Painters VP of Sales Chris Lucas

Fresh Coat Painters Welcomes Franchise Veteran Chris Lucas as Vice President of Sales

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What Types of Franchises Are Most Profitable?

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