10 Profitable Businesses in 2023 To Consider as Franchise Opportunities in 2024

As industry trends change, so does the profitability of different types of businesses. As for 2023, industries such as food trucks, child-centered businesses, and pet services have seen the benefit of an increased need and will likely continue to grow in 2024 and beyond. 

These 10 franchise concepts have proven to be some of the most profitable business ownership opportunities in 2023 given industry growth and competitiveness, startup costs, and barriers to entry, in addition to the potential earnings they offer.

Food Trucks

Food trucks have become a booming industry, with the market projected to grow rapidly in the near future. In 2021, the market was valued at $1.16 billion and is expected to grow at a compound annual growth rate of 6.4% from 2022 to 2030. 

Contributing to high profitability is the low starting costs. Starting a food truck business can cost a lot less than a brick-and-mortar restaurant and gives you flexibility to vary your location. 

Cuisines, desserts and casual food franchise options can also vary. For example, you might choose to invest in a seafood truck such as Masshole Lobster Truck or one that serves shaved ice treats like Kona Ice.

However, food trucks have complex regulatory costs and regulations they must follow. When inquiring about one, keep in mind that this market is much more saturated in large cities.  

Car Washes

Starting a car wash business can be very profitable. According to the International Carwash Association, you will have no shortage of customers — 66% of Americans wash their vehicles one to two times per month. With cars increasing in price, people are most invested in taking care of their vehicles. This market is projected to increase in value to $20.7 billion by 2028.

To increase profitability further, you might want to consider mobile car wash services, making services accessible and more convenient to a wider audience. No-H2O, an environmentally friendly car wash franchise that does not use any water, offers mobile and customizable services. 

Education

Education is an industry with a wide variety of models and concepts catered to people of all ages. There are in-person and online concepts, as well as those for adults and children. 

The industry is expected to grow by $300 billion from 2021 to 2028. A particularly popular part of the industry supports students with more individualized instruction than they may get in a traditional classroom. Both Sylvan Learning* and Mathnasium*, for example, offer personalized learning for children in K-12. 

Newborn and Postpartum Care 

Many millennials are choosing to start having children later in life than previous generations, but 80% of them will likely become parents in the next 10-15 years. 

Post-pregnancy and newborn-centered services are seeing a growing need. Franchise opportunities within this market range from mom-focused fitness groups, such as Momleta, to newborn overnight care services from brands like Let Mommy Sleep. 

Fitness

Fitness is a top priority for many, and thus, fitness franchises are very profitable. The $87 billion industry includes personal trainers, instructors of group fitness classes and big box style gyms. There are no shortage of franchise opportunities within this market, including affordable membership-only gyms like Planet Fitness and sculptural, functional movement based concepts like P.volve.  

Pet Services

Younger generations are more keen on pet ownership than previous generations, with 76% of people between 20-38 years old owning at least one pet and over half of pet owners owning a dog. 

Owners want the best for their pets, from nutritional food options to top-notch training. Franchise opportunities with brands like Pet Wants and Dog Training Elite* fill gaps in this market. 

Childcare and Enrichment

Children are expensive. Nearly half of American parents spend over $1,000 per year on activities to entertain and enrich their children. Parents are particularly fond of brands that provide both care and education at the same time. 

Franchise opportunities that fit into this industry include swim instruction schools such as Big Blue Swim School or afterschool STEAM programs such as IDEA Lab Kids.

Home Improvement

Since people were forced to spend more time in their homes during the pandemic, the home improvement industry has really taken off. The $538 billion industry offers franchise owners a diverse assortment of services they can offer in accordance with each season. 

For example, a Christmas Decor* franchise can be supplemental to another outdoor business as the services are only required in the run up to the holiday season.

Baked Goods Franchise

If baking is your passion, you’re in luck; the baked goods industry is booming. The cake industry was valued at $42.94 billion in 2019 and is expected to grow at a compound annual growth rate of 3.3% from 2020 to 2027.

However, many franchise options provide products that are streamlined and easy to assemble, meaning you can successfully sell baked goods without being, or hiring, a professional baker. 

For example, Crumbl Cookies offers novelty cookies in a variety of rotating flavors. While the brand was only founded in 2017, it has grown to over 600 locations, with sales increasing over time by over 500%. 

Cleaning Services

Cleaning franchises typically have low initial costs, with no need for a building or expensive equipment. The cleaning industry is expected to nearly double in value by 2030 to $14.6 billion. There are a variety of models available, including residential or commercial services. Both are scalable; add to your team and equipment as your customer base grows. 

Now that you have a good idea of what industries are currently leading to high profitability in business ownership, you can dive into further research regarding individual franchise brands. Be sure to carefully examine the market of your choice, noting competing brands in your industry, especially those with strong brand recognition.