11 Most Common Franchising Industries (and Why)

If you’re interested in owning your own business but want to take a more streamlined approach with fewer risks, franchising may be your best option. But what franchise industry is the best? You may be surprised to discover just how many different franchise industries there are to buy into.

In this article, I will dive into 11 of the most common franchising industries, break down what makes each industry successful, and discuss a few success stories.

1. Fast Food

Fast food franchises or quick service restaurants (QSRs) account for approximately 200,000 franchise establishments in the US alone.

QSRs became popular after WWII and have only continued to gain momentum since. Fast food franchises have a high rate of success, as they are often extremely recognizable brands. There is a seemingly endless demand for QSRs, so as long as you pick your location wisely, you’ll likely turn a profit relatively quickly.

Popular Fast Food Franchises

McDonald’s: The “Golden Arches” have become a feature in many towns and cities across America and around the world since the brand was established in the 1940s. McDonald’s has over 41,000 locations and generated nearly $25 billion in revenue in 2023.
Subway: Subway brings a unique “healthy” twist to traditional fast food and has exploded in popularity in the past few decades. This brand has approximately 37,000 locations and generated almost $10 billion in revenue in 2023.
KFC: With more than 30,000 locations across 150 countries, KFC is one of the most successful fast-food franchises.

2. Full-Service Restaurants

While fast food restaurants focus on quick service, convenience, and low prices, full-service restaurants are a sit-down experience. Full-service restaurants make up a much smaller percentage of the franchise market, but they are still a very popular option for food and beverage franchises, with over 33,000 franchises in the USA in 2023.

While these businesses produce far less revenue on average than QSRs, they provide customers with a more comfortable environment and generally a more sophisticated menu.

Popular Full-Service Restaurants Franchises

Denny’s: Launched in 1953, Denny’s is one of the most successful sit-down restaurant chains in the world. There are currently around 1,500 Denny’s franchises in the US alone.
Golden Corral: This buffet-style restaurant was founded in 1973 and has built a reputation on “real homemade fresh food.” All Golden Corral locations offer breakfast, lunch, and dinner with over 150 dishes! There are currently approximately 358 franchise locations in the USA.
Black Bear Diner: This Western restaurant chain features an extensive menu of old-fashioned comfort food. The restaurant is Wild-West-themed and is especially popular in the Western part of the US. As of 2023, there are 221 locations in the USA.

3. Convenience Stores

With our busy, on-the-go lifestyles, it should be no surprise that convenience stores are a top franchise industry. In 2023, the entire American convenience store industry made more than $860 billion in sales.

Purchasing a convenience store franchise offers a good balance of immediate brand recognition, consistent demand, and flexibility to stock products of your choosing. With the right product line and franchise deal, you can quickly make a pretty penny with a convenience store franchise.

Popular Convenience Store Franchises

7-Eleven: With more than 84,000 locations, 7-Eleven is the largest franchise in the world, generating an impressive turnover of $79 billion in revenue as of 2024.
Circle K: The second most common convenience store in the world only began franchising in 1999, but it now has over 14,000 stores worldwide. The average revenue for a Circle K franchised store is $2,565,978.
AMPM: Although AMPM has significantly fewer locations, at 1,161, it has an impressive annual turnover of $1.67 billion in 2023.

4. Hotels

Hotels may not be the first franchising industry you think of, but they are highly lucrative. The US hotel industry is booming, scoring $224 billion in revenue in 2024. Surprisingly, 6 out of 10 hotels in the USA are owned by franchisees, a figure that has grown by more than 30% in the last decade.

Hotels are a great industry because they come with several different revenue streams. Instead of solely offering rooms, many hotels also have on-site restaurants, bars, spas, and other amenities. Opening an independent hotel comes with many challenges, and it can take time to build a good reputation. With a hotel franchise, you’ll have immediate brand recognition and will receive a lot of support from the franchisor.

Popular Hotel Franchises

IHG: Since it began franchising in 1956, the Intercontinental Hotels Group has over 5,000 hotels across 100 countries. The conglomerate includes several well-known brands, including Holiday Inn, Crowne Plaza, and Candlewood Suites. As a franchisee, you’ll own the hotel and license the IHG brand.
Choice Hotels International: This brand has been around since 1941, but it began franchising in 1962. Today, there are over 7,400 franchise locations around the world.
Marriott International: Marriott is one of the most recognizable hotel brands in the world. That said, if you want to purchase a franchise, you are going to need an initial investment of at least $74 million as well as a royalty fee of 4% to 6% of room sales.

5. Car Dealerships

When you purchase a car, you buy through a licensed dealership rather than directly from the manufacturer. Franchise car dealerships have an exclusive right to sell new vehicles for a specific brand or manufacturer.

In addition to selling the latest car models, franchise dealerships generally have access to the financial arm of their associated automaker, making it much easier to secure financing to get started.

With the high-ticket price of vehicles and the constant demand, it is unsurprising that the new car dealership industry has incredibly high sales, estimated to be worth more than $1 trillion in 2024.

Popular Car Dealership Franchises

AutoNation: While not a manufacturer, AutoNation deserves a mention in the list of popular car dealership franchises. The company has 330+ franchise locations throughout the US.
Ford: Since Ford combined with Lincoln, the total number of franchise dealerships has increased to 2,800+ in the US alone.
Honda: While there are many more prominent car brands in the US, Honda offers strong margins due to reasonable pricing and low inventory levels. As of 2024, there are more than 1,000 Honda dealership franchise locations in the US.

Want Franchising Insights Straight To Your Inbox?

Sign up for our free email newsletter. It’s a 5-minute read once a week to help you level up on the franchising industry.

Sign Me Up

6. Health and Fitness

The health and fitness industry has been on a growth trend for many years, with an estimated increase of 7.5% year after year. This upward trend is expected to continue in the coming years, making health and fitness one of the top franchise industries to buy into.

The fitness industry flourishes as consumers focus more on their health and well-being. The entire industry is expected to surpass $200 billion by 2030. It’s safe to say that buying a fitness franchise would be a great choice with lots of potential.

Popular Health and Fitness Franchises

Anytime Fitness: This brand has over 5,000 franchise locations throughout the world. The company has built its brand on community and connection, aiming to make gym goers feel more comfortable.
Planet Fitness: This fitness franchise has 2,600 locations. Planet Fitness is a fairly low-cost operator, with memberships starting at just $15 per month. In fact, Planet Fitness is the most popular gym in the world, with nearly 19 million members worldwide.
Gold’s Gym: Gold’s Gym is considered the birthplace of modern fitness, with a history dating back almost 60 years. While it may have fewer locations, at only around 700, it is easily one of the most popular and recognizable fitness brands in the USA.

7. Business Services

The business services industry covers a wide range of franchises, many of which are B2B (business to business). This may include parcel delivery, print fulfillment, logistics, accounting, and marketing. While the target market for these franchises is much smaller than that of most of the above-mentioned industries, there is still a lot of potential in business services. These companies often provide services that are necessary to businesses of all shapes and sizes, so there is a constant demand.

While the segment slowed during the COVID-19 pandemic, there are still plenty of fast-growing franchise opportunities.

Popular Business Services Franchises

Spherion: This is a recruiting and staffing brand that aims to match staffing talent with companies in need. There are currently 200+ franchise offices across 36 states.
H&R Block: This is the largest tax preparation service in the United States and has filed more than 800 million returns since its founding in 1955. The company makes nearly $4 billion in gross sales each year across approximately 12,000 locations.
Office Evolution: This shared workspace brand may only have 80 locations currently but is expected to grow impressively in the coming years.
Transworld Business Advisors: This business brokerage has over 30 years of experience in franchising and now has 220 franchisees across the globe.

8. Home Services and Maintenance

Home services is often a less competitive segment since there is a wide pool of potential customers in any area compared to the number of providers. However, having a home services franchise brand allows you to benefit from a built-in national reputation.

Popular Home Services Franchises

MaidThis: This residential cleaning franchise does have a fairly hefty franchise fee of around $39,000, but MaidThis franchises tend to be very successful. The brand is on track for rapid growth in the coming years.
Wise Coatings: This is a concrete flooring service that has steadily grown since it began franchising in 2021. You will need up to $160k to invest in a Wise Coatings franchise, but the company provides all the marketing and systems you will need for a successful business.
Mr Handyman: With over 329 locations in the USA, Mr. Handyman is one of the most successful home service franchises. The company has been offering franchise opportunities since 2000 and is a relatively low-cost franchise opportunity with an excellent track record for success.

9. Hair Salons

While starting an independent hair salon carries a number of risks, a salon franchise offers the brand recognition of a chain but with the benefits of being your own boss. There are an estimated 1.4 million hair and nail salons in the US in 2024, and the entire salon industry is estimated to reach $383 billion by 2030.

While certainly not the most profitable industry on this list, hair salons can still make a pretty penny, with some reputable franchises making more than $300,000 in sales on average.

Popular Hair Salon Franchises

Supercuts: This brand is easily recognizable and has over 2,000 locations across the USA. Supercuts franchises have an average annual revenue of around $290,000.
Sports Clips: With nearly 2,000 locations across the US, Sports Clips is one of the most popular men’s hair salons in the USA.
Great Clips: This salon has more locations than any of its competitors, with more than 4,000. In fact, in the USA, Great Clips makes up around 2.5% of the total industry’s revenue.
Cost Cutters: Since it was established in 1982, Cost Cutters has grown to 500+ locations across 37 states.

10. Automotive Services

I’ve already covered car dealership franchises, but there are also numerous opportunities within the automotive services niche. Buying a car is one thing, but you’ll also have to get the oil changed and regularly service the vehicle to keep it in tip-top shape. More than 90% of Americans own a car, so the demand for automotive services is exceptionally high.

While automotive services is a profitable industry on its own, purchasing a franchise will set you up for success. You’ll cut out the need to build a brand reputation and receive a lot of support from the franchisor.

11. Caregiving

Senior and child care is an essential industry with a rapidly growing demand. There is a shortage of caregivers in the US as Baby Boomers continue to age. There is also a major shortage in childcare, with a gap of around 3.6 million in the childcare workforce.

This goes to show that purchasing a senior caregiving or childcare franchise is a smart investment as there is an increasing demand that doesn’t show signs of slowing.

Popular Caregiving Franchises

Visiting Angels: Since 1998, Visiting Angels has expanded to be one of the largest caregiving brands in the US, with 600+ locations.
Comfort Keepers: With over 700 locations, Comfort Keepers is well regarded for its “interactive caregiving” which focuses on independence and quality of life.
Lightbridge Academy: This childcare brand has been around since 1997 and has grown to more than 70 locations.

Take the Next Steps Toward Franchise Ownership

Franchising is an excellent business opportunity across many different industries. Whether you’re drawn to fast food, fitness, or caregiving, there’s bound to be a franchise industry that aligns with your goals.
If you are ready to take the next step toward franchising, Franzy is a great place to start. Franzy is the ultimate platform for discovering, researching, and connecting with franchises. Let Franzy’s AI algorithms guide you to your ideal match and turn your entrepreneurial dreams into reality.

Want more trends? Check out our franchise industry study with all the latest stats.