Which Industries Are Most Likely To Franchise

Are you ready to dive into the world of entrepreneurship but unsure where to start? Franchising might be the answer you're looking for! With the market projected to skyrocket from $108 billion in 2021 to a whopping $176 billion in 20207, this is one opportunity you don't want to miss.

In this article, we'll explore which industries are most likely to franchise, why they're perfect for your initial foray into business, and share some expert tips on how to tackle any challenges that may arise. 

So if you're eager to discover the hottest industries to franchise and learn how to take that crucial first step towards success, keep reading!

The Most Franchised Industries

You've undoubtedly encountered them: the iconic golden arches of McDonald's, the inviting glow of a 7-Eleven store, or perhaps even a nearby Planet Fitness. These are just a few examples of franchises that have seamlessly integrated into our daily lives across the globe.

But what exactly is franchising, and which industries are prime candidates for it?

Franchising is a business model where companies authorize new owners to operate under their brand name and established system. In exchange, franchisees pay royalty fees to the parent company. This arrangement empowers entrepreneurs to leverage well-known brands instead of building one from the ground up, a strategy that has proven immensely successful for countless businesses.

So, which industries top the list for franchising? According to authoritative industry reports and franchising associations, here are some of the frontrunners:

  1. Fast Food Restaurants. Everyone knows fast food restaurants have been big businesses for decades. McDonald's, Burger King, and KFC are just a few of the many fast-food franchises that have become household names in almost every corner of the globe. 
  2. Fitness Centers. The fitness industry has seen a surge in popularity over the past few years, and franchising has driven this trend. Planet Fitness is an example of this type of franchise.
  3. Cleaning Services. This lesser-known industry is growing rapidly in popularity due to its low overhead costs and potential for high profits. Franchises like Molly Maid offer specialized services. These extras include residential or commercial cleaning, which makes it easier for people to get started.
  4. Children’s Services. With the rise of children’s education, services like daycare and tutoring are becoming increasingly popular. Franchises like KinderCare, Kumon, and Sylvan Learning Center have become some of the most recognizable names in franchising in this sector. 
  5. Retail Stores. Retail stores are businesses that sell products directly to customers. The franchise industry in retail is booming as it allows entrepreneurs to open their own businesses without the risk and hassle of setting up a business from scratch. Walmart, Dollar General, PetSmart, and 7-Eleven, are all examples of these types of franchises. 

No matter what industry you choose to franchise into, it is important to do your research. This will ensure that you are getting into a business that is right for you. 

Franchise Type Industry Category / Sector Overview Key Players
Fast Food(Quick Service) Restaurants Food Service -Includes fast-food chains and other quick service restaurants -Serves quick, low-cost food -McDonald’s -KFC -Pizza Hut -Taco Bell -Firehouse Subs
Fitness Centers Health and Wellness -Businesses that help people maintain physical and mental health -Includes gyms, spas, counseling services -Planet Fitness -Orangetheory Fitness -Ideal Image -Medspa
Cleaning Services Services -Residential or commercial cleaning -Can include deep cleaning and maintenance services -Molly Maid -Merry Maids -Vanguard Cleaning Systems
Children Services Education -Provide educational and childcare services for children -Range from daycare to tutoring -Kindercare -Kumon -Mathnasium -Sylvan Learning Center -School of Rock
Retail Stores Retail & Wholesale Businesses that sell goods directly to consumers. Ranges from clothing to convenience items -7-11 -Ace Hardware -Plato’s Closet

Why These Industries Are Perfect for Franchising

Let's delve into the industries primed for franchising and uncover the reasons behind their success.

Proven Track Record

You might be curious as to why these industries dominate the franchising scene. The answer is simple: they boast a proven track record of success. All the industries mentioned in this article share a common trait - they generate impressive sales and profits.

For instance, McDonald's is one of the world's largest fast-food franchises, boasting over 38,000 locations worldwide. Unsurprisingly, they rake in substantial revenue. Most franchise owners earn around $150,000 annually. Fitness centers like Planet Fitness also perform exceptionally well, with gym membership soaring by nearly 1.8 million new clients in 2022.


To succeed, franchisees must effectively market their businesses. Fast-food restaurants have a natural appeal, catering to those seeking a quick, convenient meal. Fitness centers, on the other hand, target those in search of an accessible way to stay fit.

Cleaning services cater to bustling households with no time for chores, while children's services, such as daycare and tutoring, attract parents in need of support for their little ones.

Retail stores offer the chance to specialize in niche products or services, appealing to specific audiences and making them highly marketable. In essence, the demand for these services has always existed and will continue to do so.

Low Entry Barriers

Still wondering why these industries are the most franchised? Well, it's because many of them have relatively low entry barriers for aspiring business owners. Of course, this depends on which franchise you choose. Setting up a lesser-known fast food restaurant requires fewer resources than the most popular.

Similarly, cleaning services have virtually no upfront investment required. All you need is some basic supplies and your own transportation! 

And retail stores require only modest capital to get started – often just enough to stock the shelves with products. Finally, children's services such as daycares or tutoring programs are relatively affordable compared to other industries.

Accessible Customer Base

You can’t run a business without customers. Luckily, these popular franchises have a built-in customer base.  All the franchises in this article rely heavily on local customers for their success. This means it's easy to identify target markets in any given area. 

In addition, children’s services such as daycare and tutoring can be a great way to tap into growing family populations. Plus, most of the businesses mentioned above offer products or services that customers need or use on a daily basis. This means franchisees can expect steady revenue and long-term customer loyalty. 

Brand Recognition

Franchises offer a distinct advantage regarding brand recognition. People can easily recognize and trust a well-known name. For example, if you see a sign for Planet Fitness in your town, you know what kind of service they provide and the quality standards that come with the brand. 

This is helpful for franchises that provide services such as cleaning or childcare businesses. Customers will be more likely to choose them since they already have an established reputation. 


A huge reason these businesses are so popular as franchises are their potential for scalability. In other words, they can grow quickly and easily with the right franchise model. 

For example, a fast food chain could start out as a small restaurant in one city and then expand to multiple locations within a short time frame. This allows them to meet customer demand while also increasing their profits as they open more restaurants. 

The most franchised industries

Key Challenges in These Popular Franchising Industries

If you're considering investing in a franchise business, some common challenges come with the territory. Here’s a list of what to expect: 

Maintaining Quality Control

A successful franchise relies on delivering consistent quality products and services – across all locations – to its customers. This can be challenging when training staff and ensuring everyone is up-to-date on best practices. 

Managing Franchisee Relationships

Franchising involves working closely with multiple people who run franchises independently from the main company. Keeping these relationships healthy is essential for ensuring both parties' success. 

Navigating Legal and Regulatory Issues

Every industry has its own set of rules and regulations that must be followed in order to stay compliant with local, state, and federal laws. This can be a complex process for franchisees who may not have the expertise or resources to stay on top of it. 

Fortunately, there are ways to address these challenges to give your business the best chance for success. Here are some tips: 

  • Develop comprehensive operational manuals that outline specific processes for staff training. This also includes compliance practices across all locations within each franchised industry. This will ensure everyone is on the same page regarding quality control. 
  • Establish a formal communication system between franchises and the main company. Doing so will allow franchisees to voice any concerns or ideas about the business. This will help build trust and keep relationships strong. 
  • Work with experienced legal advisors who are familiar with all laws for each franchised industry. This will help ensure that you stay compliant with regulations and minimize potential risks. 

By taking these proactive steps, you’ll be better equipped to address common challenges in the industry you choose for your business.

Some Advice for Potential Franchisees

If you're looking for tips on selecting the right industry for your franchise, successful franchisees and franchisors can provide great insights. Make sure to reach out and get advice from others who have experience.

Another good approach is to create a checklist or guide. You can use this to assess profitability, market demand, and competition level. Here are some great questions to get you started:

  1. What are your ambitions? It's essential to think about this before deciding on a franchise. Do you need financial freedom, more control over your work life, or the opportunity to help out in your local area?
  2. Which industries appeal to you? There are many options, like food service, retail, health care, and more. Think about what matters to you and which ones fit with your values.
  3. How much money do you have to spend on a franchise? Different investment options are available, from a few thousand dollars up to several hundred thousand. It's important for you to decide how much you can afford to invest.
  4. Do you know what the franchise's business model is? It's different for every franchise, so it's important to understand how that one works. What does the franchise offer its owners, and what will your responsibilities be as an owner?
  5. Before investing in a franchise, it's important that you look into its past. Check out how well it's done financially. Also, check if franchisees are happy with the business and any legal or regulatory problems they may have faced.
  6. Do you know what kind of training and support the franchisor offers? It's important to understand how they'll help you be successful. They should provide initial training and ongoing assistance too.
  7. Do you know what kind of marketing and advertising the franchisor does to get customers? And how much support do they give to franchisees in this area?
  8. Do you know what fees and royalties you must pay the franchisor? It's important that you understand how these are calculated.
  9. Are there chances for you to grow within this franchise? Consider if new territories are available or if you can open multiple locations.
  10. What's the opinion of the franchisor in the business world? To make an informed decision, you should look into what other companies, customers, and news outlets think about them.

Is It Time to Franchise?

Overall, it is clear that most franchised industries are popular because they are marketable, scalable, and have minimal initial investments. As you consider which industries are most likely to franchise when starting your own business, remember to look for these qualities. 

Also, make sure to ask yourself important questions to guide you toward the right franchise. With a bit of research and planning, you can find an industry that best suits your needs and goals. Good luck!

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