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McDonald’s and 19 Other Franchises That Could Make You Rich

·4 min read
tofumax / iStock.com
tofumax / iStock.com

If you dream of opening your own business, join the crowd. In the midst of the coronavirus pandemic in 2020, Americans filed business applications at a record rate, with 4.4 million applications filed. In 2021, the record was broken with 5.4 million, NPR reported.

If you're like many Americans, the fear of failure may be one of your biggest obstacles if you're considering starting your own business. And who could blame you for being afraid? About half of small businesses fail within five years of launching, and about two-thirds fail within 10 years, according to the Bureau of Labor Statistics.

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Given the failure rate of new businesses, it's not surprising that many aspiring business owners opt to become a franchisee rather than launch their own operation. If you buy a franchise, you get the benefit of operating an established brand with a proven system. But - as the Federal Trade Commission cautions - buying a franchise is no guarantee of success.

That's why it's important to consider franchise options carefully before investing in one. With costs varying widely, you want to ensure you get the most bang for your buck. To help, GOBankingRates analyzed Franchise Direct's top 100 franchises of 2022 to identify those most likely to be lucrative based on their track records, startup costs and ongoing fees. They're ranked from most to least likely to be financially successful.

If you're thinking about buying a franchise, find out which ones are more likely to make you rich.

Prw_99 / Shutterstock.com
Prw_99 / Shutterstock.com

Domino's

  • Average franchise fee: $5,000

  • Average initial investment minus franchise fee: $389,975

  • Royalty fee: 5.50%

  • Advertising fee: 2.50%

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Kosamtu / Getty Images/iStockphoto
Kosamtu / Getty Images/iStockphoto

Kitchen Tune-Up

  • Average franchise fee: $5,000

  • Average initial investment minus franchise fee: $82,075

  • Royalty fee: 6.00%

  • Advertising fee: 1.50%

RiverNorthPhotography / Getty Images
RiverNorthPhotography / Getty Images

Wendy's

  • Average franchise fee: $5,000

  • Average initial investment minus franchise fee: $840,750

  • Royalty fee: 4.00%

  • Advertising fee: 4.00%

Nolichuckyjake / Shutterstock.com
Nolichuckyjake / Shutterstock.com

Marco's Pizza

  • Average franchise fee: $25,000

  • Average initial investment minus franchise fee: $412,626

  • Royalty fee: 5.50%

  • Advertising fee: 1.50%

Jonathan Weiss / Shutterstock.com
Jonathan Weiss / Shutterstock.com

Jersey Mike's

  • Average franchise fee: $18,500

  • Average initial investment minus franchise fee: $446,951

  • Royalty fee: 6.50%

  • Advertising fee: 1.00%

Wolterk / Getty Images
Wolterk / Getty Images

The UPS Store

  • Average franchise fee: $19,950

  • Average initial investment minus franchise fee: $292,168

  • Royalty fee: 5.00%

  • Advertising fee: 3.50%

Tomsmith585 / Getty Images
Tomsmith585 / Getty Images

Mountain Mike's Pizza

  • Average franchise fee: $22,500

  • Average initial investment minus franchise fee: $388,400

  • Royalty fee: 5.00%

  • Advertising fee: 3.00%

Pictac / Getty Images/iStockphoto
Pictac / Getty Images/iStockphoto

Coldwell Banker Residential

  • Average franchise fee: $12,500

  • Average initial investment minus franchise fee: $288,198

  • Royalty fee: 5.50%

  • Advertising fee: 0.50%

Nixx Photography / Shutterstock.com
Nixx Photography / Shutterstock.com

McDonald's

  • Average franchise fee: $22,500

  • Average initial investment minus franchise fee: $1,443,000

  • Royalty fee: 4.00%

  • Advertising fee: 4.00%

Shutterstock.com
Shutterstock.com

Home Instead

  • Average franchise fee: $59,000

  • Average initial investment minus franchise fee: $85,000

  • Royalty fee: 5.00%

  • Advertising fee: 2.00%

J. Michael  Jones / Getty Images
J. Michael Jones / Getty Images

Papa John's

  • Average franchise fee: $15,000

  • Average initial investment minus franchise fee: $374,215

  • Royalty fee: 5.00%

  • Advertising fee: 5.00%

SeventyFour / Getty Images/iStockphoto
SeventyFour / Getty Images/iStockphoto

CARSTAR

  • Average franchise fee: $10,000

  • Average initial investment minus franchise fee: $541,250

  • Royalty fee: 5.50%

  • Advertising fee: 1.00%

Andrey_Popov / Shutterstock.com
Andrey_Popov / Shutterstock.com

uBreakiFix by Asurion

  • Average franchise fee: $20,000

  • Average initial investment minus franchise fee: $198,419

  • Royalty fee: 7.00%

  • Advertising fee: 0.00%

A stockphoto / Getty Images/iStockphoto
A stockphoto / Getty Images/iStockphoto

Mr. Rooter Plumbing

  • Average franchise fee: $40,000

  • Average initial investment minus franchise fee: $93,558

  • Royalty fee: 6.00%

  • Advertising fee: 2.00%

L-Medien / Shutterstock.com
L-Medien / Shutterstock.com

Glass Doctor

  • Average franchise fee: $35,000

  • Average initial investment minus franchise fee: $168,900

  • Royalty fee: 5.50%

  • Advertising fee: 3.00%

maxbelchenko / Shutterstock.com
maxbelchenko / Shutterstock.com

ServPro

  • Average franchise fee: $70,000

  • Average initial investment minus franchise fee: $148,763

  • Royalty fee: 6.50%

  • Advertising fee: 3.00%

Tupungato / Shutterstock.com
Tupungato / Shutterstock.com

Subway

  • Average franchise fee: $15,000

  • Average initial investment minus franchise fee: $329,725

  • Royalty fee: 8.00%

  • Advertising fee: 4.50%

santiphotois / Getty Images/iStockphoto
santiphotois / Getty Images/iStockphoto

Big O Tires

  • Average franchise fee: $22,500

  • Average initial investment minus franchise fee: $706,150

  • Royalty fee: 2.00%

  • Advertising fee: 4.90%

Halfpoint / Getty Images/iStockphoto
Halfpoint / Getty Images/iStockphoto

Scooter's Coffee

  • Average franchise fee: $40,000

  • Average initial investment minus franchise fee: $1,217,000

  • Royalty fee: 6.00%

  • Advertising fee: 2.00%

APN Photography / Shutterstock.com
APN Photography / Shutterstock.com

Pizza Hut

  • Average franchise fee: $25,000

  • Average initial investment minus franchise fee: $1,190,250

  • Royalty fee: 6.00%

  • Advertising fee: 4.75%

More From GOBankingRates

Jami Farkas and Cameron Huddleston contributed to the reporting for this article. 

Methodology: GOBankingRates looked at Franchise Direct's Top 100 Franchises of 2022 across five factors to determine the top 20 franchises that could make you rich. The factors were as follows and all sourced from Franchise Direct: (1) Overall rank; (2) average of the low and high end initial franchise fees; (3) average of the low and high total initial investment minus the average franchise fee; (4) the percent of gross sales that will be deducted for royalty or service fees; and (5) the percent of gross sales that will be deducted for advertising or marketing fees. To be considered for this list the company offering the franchise had to be headquartered in the United States and have all the data for the factors above readily available. All factors were scored and combined, with the lowest score being best. In the final scoring, factor (1) was weighted 0.75 times as heavily as the other factors. All data was compiled on and up to date as of May 24, 2022.

Photo note: Some of the images in this article are representational and may not depict the company named. 

This article originally appeared on GOBankingRates.com: McDonald’s and 19 Other Franchises That Could Make You Rich