15 Best Franchises To Own in 2024
In this article, we will take a look at the 15 best franchises to own in 2024. If you want to skip our detailed analysis, you can go directly to 5 Best Franchises To Own in 2024.
Franchising: What is in Store for 2024?
According to a report by Forbes, franchising has particularly been highly resilient throughout 2023, despite tumultuous economic conditions. Not only has the franchising industry experienced extensive growth during the year, but it also added more than 254,000 jobs in the United States. While the franchising industry has benefited several stakeholders, franchise owners did bear the brunt of rising inflation and high labor costs. Moreover, rising interest rates only made investing in a startup or franchise more costly. However, Forbes suggests that despite these challenges, the franchising industry is expected to grow steadily in 2024. Technological advancements and innovation will stand as the most prominent factors altering the industry in 2024. The report highlights that the use of artificial intelligence may help franchise owners develop a competitive advantage, especially by optimizing business processes. Additionally, the report also highlights that enhancing the customer experience is integral to business success. Franchise owners must focus on developing personalized solutions for customers.
Prominent Franchises in the Market
Some of the best franchises to own in 2024 include McDonald's Corporation (NYSE:MCD), Seven & i Holdings Co., Ltd. (OTC:SVNDY), and Papa John's International, Inc. (NASDAQ:PZZA). Let's discuss some recent updates from these companies. You can also take a look at the most popular fast food franchises to open with under $100000.
McDonald's Corporation (NYSE:MCD), a leading restaurant chain, is a popular choice among franchise owners. The company is actively engaged in enhancing its business operations through technology. On December 6, McDonald's Corporation (NYSE:MCD) announced a strategic partnership with Google. The partnership will allow McDonald's Corporation (NYSE:MCD) to leverage Google Cloud technologies across all of its restaurants and franchises across the globe to enhance customer experience and improve productivity. The Google Cloud capabilities to be deployed are a combination of several AI, data, and hardware tools.
McDonald's Corporation's (NYSE:MCD) commitment to enhance its business processes explains its financial results. On October 30, McDonald's Corporation (NYSE:MCD) reported earnings for the fiscal third quarter of 2023. The company reported earnings per share worth $3.19, beating estimates by $0.20. The company also reported revenue of $6.69 billion during the quarter, ahead of market consensus by $141.70 million, with a year-over-year growth rate of 13.97%.
7-Eleven, Inc., a subsidiary of Seven & i Holdings Co., Ltd. (OTC:SVNDY), is a prominent convenience store franchise chain based in Irving, Texas. The franchise has more than 84,000 stores across 20 countries. The company continues to enhance its offerings strategically. On November 1, 7-Eleven, Inc. chose 49 innovative and fresh brands to become a part of the company's "Brands with Heart" program. The program is focused on allowing brands to be placed at 7-Eleven, Speedway, and Stripes stores across the United States. The selection of these brands was based on their commitment to people, the planet, and the community. Through the program, 7-Eleven, Inc. is able to offer new and innovative products to its customers across the country.
Papa John's International, Inc. (NASDAQ:PZZA) is a leading pizza franchise in the United States. Known for producing some of the best stuffed crust pizzas, on December 18, Papa John's International, Inc. (NASDAQ:PZZA) announced the launch of its new "Cheezy Calzone Epic Stuffed Crust Pizza." The new flavor is an addition to the company's pepperoni and garlic stuffed crust pizzas. The new flavor is made with original dough and comes with a blend of mozzarella and savory garlic-herb ricotta. While the new flavor was launched on December 18 for Papa Rewards loyalty members, consumers across the United States can enjoy the flavor on December 26.
Papa John's International, Inc. (NASDAQ:PZZA) regularly launches new flavors and pizza offerings to keep the brand's hype alive. Such also explains its financial results. On November 2, Papa John's International, Inc. (NASDAQ:PZZA) reported earnings for the fiscal third quarter of 2023. The company reported earnings per share of $0.53 and a revenue of $522.81 million during the quarter, with a year-over-year growth rate of 2.41%.
You can also take a look at franchises you can open with under $10k. With that, now let's take a look at the 15 best franchises to own in 2024.
15 Best Franchises To Own in 2024
Our Methodology
We employed a consensus approach to come up with the 15 best franchises to own in 2024. We first sifted through 6 reports on the internet including xoxoday, Fast Capital 360, My Millenial Guide, Indeed, National Association of Safety Professionals, and The Franchise King. This process enabled us to create an initial pool of 20 best franchises. We then acquired the market capitalization of publicly listed franchises and annual sales figures for private franchises to identify the best 15 franchises to own in 2024.
For some private franchises, we were unable to source the reported annual revenue. For such franchises, we decided to rank them based on the number of franchises or employees, based on what was available on the companies' official websites, as it reflects the size and position of a franchise. The list of the 15 best franchises to own in 2024 is in ascending order of the number of mentions with the market capitalization as of December 25, 2023, or annual revenue for the latest year available, as a tiebreaker for two or more franchises with the same item count.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
15 Best Franchises To Own in 2024
15. Ben and Jerry's
Number of Mentions: 3
Number of Countries: 33
Ben & Jerry's, a subsidiary of Unilever PLC (NYSE:UL), ranks among the best franchises to own in 2024. The company specializes in the production and sale of ice cream, frozen yogurt, and sorbet. The franchise fee ranges from $18,500 to $39,500. Franchise owners must also have enough liquid assets worth $50,000 to $75,000 to cover operating expenses for 3 months. The franchise is available in 33 countries across the globe.
14. Pet Supplies Plus
Number of Mentions: 3
Number of Franchise Locations: 700
According to our methodology, Pet Supplies Plus ranks as one of the best franchises to own in 2024. The pet supply retail corporation is owned by Franchise Group, Inc. The franchise has more than 700 stores and has an average unit volume (AUV) of $2.7 million. The franchise provides comprehensive training and support and has an initial franchise fee of almost $49,900. Additional costs include inventory costs, equipment costs, set-up fees, training fees, and advertising costs.
13. Orangetheory Fitness
Number of Mentions: 3
Number of Franchise Locations: 1,500
Orangetheory Fitness ranks among the best franchises to own in 2024. The franchise is based in Florida. The fitness franchise network is owned by Roark Capital Group. The franchise has more than 1 million members with over 1,500 studios across 27 countries. The primary benefits of owning the franchise include comprehensive training and real estate, operations, marketing, sales, fitness, and construction support. The initial franchise fee is approximately $59,950. Additional costs include travel and living expenses, leasehold deposits, rent, fitness equipment costs, and insurance costs.
12. Sonic Drive-In
Number of Mentions: 3
Number of Franchise Locations: 3,542
Sonic Drive-In, also known as Sonic Corporation, ranks among the best franchises to own in 2024. Inspire Brands owns the restaurant company. The initial franchise fee ranges from $30,000 to $45,000. The franchisee must pay 1% to 5% in royalties to the franchise. There are a range of steps involved in owning a franchise which include an online inquiry, an interview with the franchise development team, a franchise application form, attending a discovery day, signing the franchise agreement, and submitting the franchise fee. Once completed, the franchise owner must enroll in a comprehensive training program before the grand opening.
11. Anytime Fitness
Number of Mentions: 3
Number of Franchise Clubs: 4,700
According to our methodology, Anytime Fitness ranks as one of the best franchises to own in 2024. The health club franchise has more than 4,700 clubs across 30 countries. The initial franchise fee may range from $25,000 to $42,500. Additional costs include travel and training expenses, leasehold improvements, rent, construction management fees, and design fees.
10. Subway
Number of Mentions: 3
Number of Restaurants: 37,000
Subway is a leading fast food restaurant chain in Connecticut, United States. The company engages in the production and sale of sandwiches, wraps, salads, and drinks. The franchise has more than 37,000 locations in 100 countries across the globe and an initial franchise fee of $15,000. Additional costs include real property costs, leasehold improvements, equipment costs, opening inventory, insurance costs, and freight charges.
9. Papa John's International, Inc. (NASDAQ:PZZA)
Number of Mentions: 3
Market Capitalization as of December 22, 2023: $2.47 Billion
With a market cap of $2.47 billion, as of December 22, Papa John's International, Inc. (NASDAQ:PZZA) ranks as one of the best franchises to own in 2024. The pizza franchise is based in the United States. The franchise has more than 5,500 locations across the globe with an average unit volume (AUV) of $1.1 million. The initial investment may range from $188,615 to $975,415.
8. Cruise Planners
Number of Mentions: 3
Annual Revenue (2023): $1.00 Billion
According to our methodology, Cruise Planners is one of the best franchises to own in 2024. The company is a home-based travel agent franchise network based in Florida. The franchise is also one of the cheapest franchises to own. Franchisees can open the franchise with $8,995. The franchise allows business owners to work from anywhere. The company also provides comprehensive training to its franchisees along with high commissions.
7. Planet Fitness, Inc. (NYSE:PLNT)
Number of Mentions: 3
Market Capitalization as of December 22, 2023: $6.44 Billion
Planet Fitness, Inc. (NYSE:PLNT) ranks as one of the best franchises to own in 2024, with a market cap of $6.44 billion, as of December 22. The franchise is based in the United States and is one of the largest fitness club franchises in the country. Planet Fitness, Inc. (NYSE:PLNT) has over 2,400 locations and 18.5 million members across five countries. The initial franchise fee is almost $20,000. Additional costs include site selection, fitness equipment, leasehold improvements, insurance costs, marketing costs, and computer systems.
6. Great Clips
Number of Mentions: 4
Number of Franchise Locations: 4,500
According to our methodology, Great Clips is one of the best franchises to own in 2024. The hair salon franchise is based in Minnesota, United States. The franchise fee ranges from $20,000 to $35,000 in the United States and Canada. Additional costs may include initial ad fund collection, leasehold and site fees, additional funds, grand opening advertising, training expenses, travel expenses, living expenses, and insurance costs. A franchisee must have at least $75,000 in liquid assets, a credit score of at least 675, and a minimum net worth of $300,000. The company has over 4,500 locations across the United States and Canada.
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Disclosure: None. 15 Best Franchises To Own in 2024 is originally published on Insider Monkey.
