What Is the Best Franchise to Open in the U.S. in 2024?

When deciding which franchise opportunity is right for you, there are several factors to consider, such as how much you’re willing to invest, how involved you want to be, and what industry you want to go into. This means the best option for you will be a subjective choice. That said, if you want a more empirical answer, you need look no further than Entrepreneur’s prestigious Franchise 500 list. 

Every year, Entrepreneur invites franchisors to fill out an online form and submit their current Franchise Disclosure Document or Canadian Disclosure Document. The publication then ranks the top 500 based on factors such as costs and fees, support, size and growth, brand strength, and financial strength and stability. And this year, Taco Bell reigned supreme, claiming the number one spot for the fourth year in a row. 

Here’s a look at what makes Taco Bell shine in the franchise industry. 

The History and Growth of Taco Bell

Taco Bell and its more than 350 franchise organizations operate over 7,200 restaurants in the U.S. Internationally, the brand is growing with more than 1,000 restaurants in over 30 countries across the globe. The brand started franchising in 1964 when Kermit Becky, a retired L.A. police officer, opened his own Taco Bell in Torrance, California. In 1978, Taco Bell became a subsidiary of Yum! Brands.

From 2019 to 2020, Taco Bell saw over 3% growth; over the three years prior, they had grown more than 10%. In 2023, the brand said that it's on track to operate 10,000 U.S.-based restaurants in the coming years. 

"Taco Bell is growing for good. Each time a new restaurant opens, we treat it as an opportunity to do better for fans, team members and our franchise partners," Scott Mezvinsky (managing director of the brand’s North America operations) said in a press release. "Our secret sauce is our constant innovation paired with our incredible franchisee partnerships, which unlocks our profitable growth and further expansion.”

What Makes Taco Bell a Great Investment?

Taco Bell consistently ranks high on Entrepreneur’s Franchise 500 list and as a popular and recognizable brand in the U.S., it offers a competitive edge for franchisees. The company's global expansion presents opportunities for entrepreneurs worldwide to open a franchise, making Taco Bell a favorable choice both within and outside the U.S., noted Entrepreneur. 

It also offers franchisees several business models to choose from depending on what best suits their needs. These include: 

• Traditional Units: Stand-alone buildings with a full menu, including drive-thru options.
• In-Lines: Similar to Traditional Units, may or may not include a drive-thru.
• Power Pumpers: Combined with gas stations and convenience stores.
• Taco Bell Express (Custom Facades): Less elaborate facilities with a limited menu.

In terms of profitability, Taco Bell has not disclosed specific location data, but estimates suggest that traditional locations, numbering 6,799 in 2021, generated $11 billion in sales with an Average Unit Volume of $1,617,884.

The Investment 

Opening a Taco Bell franchise comes with a considerable financial commitment. The estimated total investment varies based on the type of franchise:

• Traditional Taco Bell Franchise: $1,298,600 to $3,370,100
• Express Franchise: $227,500 to $590,100

This investment covers various expenses, including initial franchise fees, background checks, licenses, permits, construction, equipment, and more.

In addition to the initial investment, Taco Bell franchisees are subject to ongoing fees, including:

• Royalty Fee: 5.5% of sales
• Marketing and Advertising Fee: 4.25%

Taco Bell stands out as the top franchise choice in 2024 thanks to its global growth, innovative business models, and consistent profitability, making it a compelling investment option for entrepreneurs.

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To learn more about Taco Bell, check out these related articles: 

• How to Become a Taco Bell Franchisee in 2023
• Taco Bell Franchise Costs, Fees, Profit and Data 
• The Top 10 Most Loved Restaurant Franchises in America