Top Franchise Industries 2024-2025

Your Complete Guide to the Most Profitable Franchise Opportunities

Last Updated: June 202518 min read
$825B+ Total Market Size
780,000+ Franchise Units
14.2% Avg Annual Growth

The Franchise Landscape in 2024-2025

The franchise industry continues to evolve rapidly, driven by technological innovation, changing consumer preferences, and post-pandemic adaptations. With over 780,000 franchise establishments in the US alone, the sector represents a $825 billion market opportunity.

Record Growth

The franchise sector is experiencing unprecedented growth, with a 14.2% average annual increase across all industries, outpacing traditional business models.

Diverse Opportunities

From $25K home-based businesses to $5M hospitality ventures, franchising offers opportunities for every investor profile and risk tolerance.

Proven Success

Franchise businesses have a 90% success rate over 5 years, compared to 50% for independent startups, making them a safer investment choice.

Top 10 Franchise Industries by Growth & Opportunity

1

Food Service & QSR

Market Size: $298.2B | 200,000+ Franchises

+8.2%
Annual Growth

Investment Range

$50K - $2.5M

Average ROI

15-25%

Top Brands

McDonald's, Subway, Chick-fil-A, Dunkin'

Current Trends

Ghost kitchensPlant-based optionsDigital orderingDelivery integration

Key Challenges

  • High competition
  • Food cost volatility
  • Labor shortages
  • Health regulations

Post-Pandemic Adaptations

Accelerated digital transformation, focus on drive-thru and delivery

Future Outlook

Continued growth in fast-casual and health-conscious concepts

2

Fitness & Wellness

Market Size: $96.7B | 50,000+ Franchises

+12.5%
Annual Growth

Investment Range

$40K - $500K

Average ROI

20-30%

Top Brands

Anytime Fitness, Planet Fitness, Orangetheory, F45

Current Trends

Boutique fitnessVirtual trainingRecovery servicesWellness integration

Key Challenges

  • Member retention
  • Equipment costs
  • Seasonal fluctuations
  • Competition from apps

Post-Pandemic Adaptations

Hybrid models combining in-person and virtual offerings

Future Outlook

Growth in specialized fitness concepts and holistic wellness

3

Home Services

Market Size: $506B | 75,000+ Franchises

+15.3%
Annual Growth

Investment Range

$30K - $200K

Average ROI

25-35%

Top Brands

Molly Maid, Mr. Handyman, Two Men and a Truck, ServPro

Current Trends

Green cleaningSmart home integrationSubscription modelsEmergency services

Key Challenges

  • Finding skilled workers
  • Insurance costs
  • Seasonal demand
  • Quality control

Post-Pandemic Adaptations

Increased demand for cleaning and sanitization services

Future Outlook

Expansion in senior care and specialized maintenance services

4

Education & Tutoring

Market Size: $80.3B | 25,000+ Franchises

+18.7%
Annual Growth

Investment Range

$25K - $150K

Average ROI

30-40%

Top Brands

Kumon, Mathnasium, The Goddard School, Huntington Learning

Current Trends

STEM focusOnline tutoringCoding educationEarly childhood development

Key Challenges

  • Teacher recruitment
  • Technology costs
  • Parent expectations
  • Competition from online

Post-Pandemic Adaptations

Hybrid learning models and increased focus on supplemental education

Future Outlook

Growth in specialized skills training and adult education

5

Automotive Services

Market Size: $146B | 40,000+ Franchises

+9.8%
Annual Growth

Investment Range

$100K - $800K

Average ROI

18-28%

Top Brands

Jiffy Lube, Midas, Meineke, CARSTAR

Current Trends

EV servicingMobile mechanicsSubscription maintenanceDigital diagnostics

Key Challenges

  • Technology training
  • Equipment costs
  • EV transition
  • Parts availability

Post-Pandemic Adaptations

Increased focus on contactless service and mobile offerings

Future Outlook

Transition to electric vehicle servicing and advanced diagnostics

6

Healthcare & Senior Care

Market Size: $120B | 30,000+ Franchises

+22.4%
Annual Growth

Investment Range

$75K - $400K

Average ROI

25-40%

Top Brands

Home Instead, Visiting Angels, Any Lab Test Now, The Joint Chiropractic

Current Trends

In-home careTelehealth integrationSpecialized therapiesPreventive care

Key Challenges

  • Regulatory compliance
  • Staff certification
  • Insurance complexities
  • Quality standards

Post-Pandemic Adaptations

Explosive growth in home healthcare and non-traditional care models

Future Outlook

Continued expansion driven by aging population and healthcare accessibility

7

Retail & E-commerce

Market Size: $85B | 60,000+ Franchises

+11.2%
Annual Growth

Investment Range

$50K - $500K

Average ROI

15-25%

Top Brands

UPS Store, 7-Eleven, Ace Hardware, Once Upon A Child

Current Trends

Omnichannel retailSustainable productsLocal deliveryExperience retail

Key Challenges

  • E-commerce competition
  • Inventory management
  • Real estate costs
  • Technology integration

Post-Pandemic Adaptations

Shift to hybrid retail models combining physical and digital presence

Future Outlook

Focus on specialized retail and community-based concepts

8

Business Services

Market Size: $65B | 45,000+ Franchises

+14.6%
Annual Growth

Investment Range

$40K - $250K

Average ROI

20-35%

Top Brands

H&R Block, Minuteman Press, FASTSIGNS, Allegra Marketing

Current Trends

Digital marketing servicesRemote work solutionsCybersecurityConsulting services

Key Challenges

  • Technology changes
  • Client acquisition
  • Service differentiation
  • Remote management

Post-Pandemic Adaptations

Increased demand for digital transformation and remote business solutions

Future Outlook

Growth in specialized B2B services and technology consulting

9

Pet Care Services

Market Size: $45B | 20,000+ Franchises

+19.8%
Annual Growth

Investment Range

$35K - $300K

Average ROI

22-32%

Top Brands

Camp Bow Wow, Pet Supplies Plus, Dogtopia, Wag N' Wash

Current Trends

Premium pet servicesMobile groomingPet wellnessTechnology integration

Key Challenges

  • Liability concerns
  • Staff training
  • Facility requirements
  • Competition

Post-Pandemic Adaptations

Surge in pet ownership driving demand for all pet services

Future Outlook

Expansion in specialized and premium pet care services

10

Travel & Hospitality

Market Size: $90B | 35,000+ Franchises

+16.9%
Annual Growth

Investment Range

$100K - $5M

Average ROI

15-30%

Top Brands

Cruise Planners, Dream Vacations, Hampton Inn, Holiday Inn Express

Current Trends

Experiential travelSustainable tourismRemote work travelBoutique concepts

Key Challenges

  • Economic sensitivity
  • Seasonal fluctuations
  • Online competition
  • Global events impact

Post-Pandemic Adaptations

Recovery with focus on domestic travel and unique experiences

Future Outlook

Growth in specialized travel services and boutique hospitality

Emerging Franchise Trends & Opportunities

Technology Integration

AI, automation, and digital platforms becoming essential across all industries

Impact:

Reduced labor costs, improved efficiency, enhanced customer experience

Sustainability Focus

Eco-friendly practices and green business models gaining traction

Impact:

Attracting conscious consumers, reducing operational costs, future-proofing businesses

Hybrid Business Models

Combining physical and digital presence for maximum reach

Impact:

Increased revenue streams, broader customer base, operational flexibility

Health & Wellness Integration

Health-conscious options expanding beyond traditional wellness industries

Impact:

Capturing growing health-aware market, premium pricing opportunities

Subscription-Based Services

Recurring revenue models across various industries

Impact:

Predictable income, improved customer retention, higher lifetime value

ROI Comparison Across Industries

Food Service & QSR
15-25%
Fitness & Wellness
20-30%
Home Services
25-35%
Education & Tutoring
30-40%
Automotive Services
18-28%

* ROI figures represent typical returns within 3-5 years of operation

Industry Selection by Investor Profile

First-Time Franchisee

Budget: $50K - $150K

Recommended Industries:

  • Home Services
  • Education & Tutoring
  • Business Services

Key Characteristics:

Lower initial investmentHome-based optionsStrong franchisor support

Experienced Entrepreneur

Budget: $150K - $500K

Recommended Industries:

  • Food Service
  • Fitness & Wellness
  • Automotive Services

Key Characteristics:

Proven business modelsMultiple revenue streamsScalability potential

Investment Group

Budget: $500K+

Recommended Industries:

  • Multi-unit Food Service
  • Healthcare
  • Travel & Hospitality

Key Characteristics:

High growth potentialMultiple locationsPassive income opportunities

Career Changer

Budget: $75K - $250K

Recommended Industries:

  • Business Services
  • Pet Care
  • Education

Key Characteristics:

Flexible hoursPersonal passion alignmentWork-life balance

Future Outlook & Predictions

2025-2027 Projections

  • Healthcare and senior care franchises expected to grow 30%+ annually
  • Technology-enabled service franchises to dominate new openings
  • Sustainability-focused concepts to capture 25% of new franchise launches
  • Multi-unit ownership to represent 60% of all franchise transactions

Investment Opportunities

  • Recession-resistant industries like home services and education
  • Emerging markets in secondary cities and suburban areas
  • Conversion franchises for existing independent businesses
  • International franchise expansion opportunities

The franchise industry is positioned for continued growth, with technology integration, demographic shifts, and evolving consumer preferences creating unprecedented opportunities for savvy investors.

Expected Industry Value by 2027:

$1.2 Trillion

Ready to Explore Franchise Opportunities?

Use this guide to identify the best franchise industry for your goals, budget, and lifestyle. Remember to conduct thorough due diligence, consult with franchise attorneys and accountants, and speak with existing franchisees before making your investment decision.