20 Most Profitable Franchises to Own for 2024

This article about the most profitable franchises is based on the video featured above, originally recorded for Vetted Biz Youtube Channel.

Want to make sure you invest in the most profitable franchises with a low failure rate?

At Vetted Biz we take pride in delivering you accessible data and information to make your entrepreneurial endeavors become a reality. We reviewed thousands of franchise loans from the past 10 years to identify the top 20 most profitable franchises with best track record for loan repayment.

We analyzed the loan data on more than 2,000 franchise brands to see which ones proved to be a major success (and major failure!).  By measuring how many franchise loans issued under the SBA 7(a) loan program were paid in full compared to how many were charged off (i.e. defaulted), we computed the SBA loan success ratio.

We have compiled an extensive list of the top 20 franchises by the SBA loan success ratio, many of which do not have a SINGLE defaulted loan.

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Best franchises to Own

Most profitable franchises by loan success ratios:

Orange Theory Fitness

One of the most profitable franchises that is continuously growing in the wellness and fitness industry, it was recently renowned for its unique training and fitness approaches. They use a wide array of new technologies, a breadth of industry expertise, and coaching while staying on par with the increase in athletic science. The goal of the fitness model is to get active routinely; elevate the heart rate and in turn, burn the dreaded calories. There’s a highly modernized approach to its business and fitness model as well as to its brand identity; which makes it best franchise to buy.

Most notably, they are highly profitable franchise over time, boosting an outstanding 180:0 loan success ratio, among the highest in its class. In other words, on average, for every 180 loans paid in full, 0 have been charged off.  Additionally, close to 50% of loans issued to Orange Theory franchisees have been paid in full.

The UPS Store

The UPS Store is sometimes referred as the “go to” name in the industry for all your retail shipping, postal, printing or business service logistical needs. They are there to always serve you as they are world’s largest packaging delivery service can help you make your delivery process as smooth, efficient and seamless as possible. There are over 5,000 independently owned UPS Stores across North America. With a great track record of revenue streams and sustainability. They demonstrate an outstanding 170:1 loan success ratio. Proving that this business can be worth your while over the short and long run of your personal and professional endeavors. On average for every 170 loans paid in full, there have been 0 charged off loans. That’s why they are considered one of the most profitable franchises.

Ameriprise Financial

This company is there to offer you the most specialized and proven financial advisory services. Your personal or professional finances are in some of the best hands available in the industry, which ranks it as one of the most profitable franchises. On average, for every 114 loans paid in full for the firm, 0 have been charged off in its time frame between 2010-2020 of Q3. The firm has had close to 350 loans that have been dished out to support the franchises business adventures and all those lenders have been significantly satisfied by their investment. The financial industry sector will always remain profitable and essential based on the nature of its business, even with AI’s increased presence in the industry.

The financial industry sector will always remain profitable and essential based on the nature of its business, even with AI’s increased presence in the industry.

Comfort/Comfort Inn & Suites

‘A better us, for the best you’ slogan stands very true to the overall performance and reputation over Comfort Inn & Suites’ many years of success, that’s why it’s one of the most profitable franchises. With its friendly staff and its continuous quality and welcoming rooms and amenities, the comfort inn has steadily captivated a large market share and has gained more of a competitive advantage in the industry. Whether you chose to stay alone or with company, for leisure or business, or as a client or investor, it is safe to say this franchise is good investment of time, energy and money. Presenting at least 51% majority paid in full rate on total loans approved for this franchise or an average count of 106 loans paid in full for 0 that are charged off, Comfort Inn remains a comfortable and secure business in the market.

Planet Fitness

Planet Fitness operators and franchisors are reaping the rewards of the increasing demand in this day in age for a healthy and active lifestyle among the people. The company remains one of the most profitable franchises with immense potential to dominate the market. Due to its operations from its franchised, corporate-owned stores and lastly its equipment. Whether you’re an athlete on the field, a mathlete in the classroom, or a surgeon in the workforce, the fitness sector remains one of the growing industries for obviously health maintenance and improvement reasons. It’s based on a business model that is there to continuously serve the needs of those looking for self-growth and improvement. And doesn’t seem to be slowing down any time soon. They hold a strong 65% paid in full rate from all its loan counts and have on average 88 loans paid in full, 0 that have been charged off. Highly recommend getting active with Planet Fitness today.

Christian Brothers Automotive

One of the longest-lasting auto service and repair companies in the industry, we can’t write them off just yet. Founded in 1982, they take pride in putting their client’s needs as a top priority and conducting their business with honesty, integrity, and reliability. When your car is ready from its service with them, they even offer to pick you up, That is why they have become one of the most profitable franchises. This sort of empathy and accountability for their job should not go unnoticed, as on average, for every 72 loans paid in full, 0 have been charged. Telling sign, that the nice guys always win. Do the right thing and support your friends over at Christian Brothers Automotive.

Choice Hotels International Inn

This hospitality franchisor is a big player in the industry that is considered a very profitable franchise. It is one the largest hotel chains and can serve as a great customer option for your upscale base or your ordinary audience. They even own the Ascend Hotel Collection among all other popular brands. Their newly developed tag line, “Our Business is You” has shown how strong it is in its advertising and emphasizes its commitment to its clients. They cling on close to an outstanding 75% paid in full rate based on all loans approved for the company. Oh, and note to forget, on average, for every 61 loan paid in full, there have been 0 charged off. Reliability, sustainability and credibility. Definitely worth an investment if you are interested in an established player in the industry that serves all sorts of client types.

Culver’s

The chain is one of the most profitable franchises, and is known for its “Butter burgers”, its ride array of delicious foods, and its cooked meal is served with a smile. Outstandingly enough, this franchisor will make you smile with its financials as well, boosting on average for every 51 loans paid, 0 that have been charged off. This ongoing rate is a noteworthy stat within a very competitive food and beverage market.

Wingstop Restaurants

The chain of restaurants is unique to its delicious chicken wings, french fries, cole slaw, dips, and the list goes on. With locations across the United States, Wingstop has been flying high since 1994. And nothing seems to be flying away with its signature wings and its huge supporter base. It’s one of the most profitable franchises in this field. Wingstop is still expanding across the US and Mexico. They hold a strong 50% paid-in-full rate based on total loans dished out and a 51:0 paid-in-full to charged-off ratio.

Quality Inn/Quality Suites Hotel

While they constantly preach that “your peace of mind is important to us” they have proven to make informed and conscious decisions to make the right decisions for their clients. As renowned name in the industry, the brand has shown no real signs of regression for the financial component of its borrowers and lenders looking to own or operate one of the most profitable franchises. An Impressive average for every 137 loans paid in full, 1 has been charged off. A noteworthy player who has years of experience and excellence.

Sport Clips

This barber franchise has a wide range of hair and beauty services portrayed with a high emphasis on the theme of sports. From its Triple Play Haircuts to its Paul Mitchell products, you know, your hair and your classic barber talks are in tremendous hands. The franchise takes pride in providing outstanding quality service and an even better customer experience from the moment they walk in the door. For this reason, it is one of the most profitable franchises. This is why on average, for every 135 loans paid in full for 1 charged off. But the MVP stat has to be the incredible 77% Paid in full rate based on all approved loan counts for the franchise.

Domino’s Pizza

Domino’s Pizza is one of the most popular pizza restaurant chains and the most profitable franchises. Who doesn’t love a good Domino’s Pizza to get you smiling during the day or night. They have a renowned business model that is commonly utilized by individuals and groups of people per transaction. It is no wonder that on average for every 132 loans paid in full, only 1 has been charged off.

Best Western Inn

Known as one of the largest chains in the industry, they literally have locations all over the United States. They offer a range of quality lodging and travel services that are both affordable and reliable to its client base. Quit saving your Best Western Rewards, because an investment in this franchise will prove an impressive 118:1 paid in full to charged off loan status. 

European Wax Center

This chain of hair removal salons is extremely unique and one that isn’t necessarily thought of at first as successful or sustainable. However, these wax centers are starting to turn heads through their range of unique services in skincare, body, and eyebrow components of the business model. For that reason, don’t miss the next big opportunity in the self-care industry with one of the best franchises to buy.

Chevron (Gas Station)

We do not generally recommend gas station investment. However, Chevron Gas Stations have shown high levels of loan success over time. They take pride on giving their clients the best gasoline for their vehicles and acknowledge that is more of an important decision that what most think. Much like your vehicle is an investment, you expect this company to stand by that philosophy. With that said, 92:1 loan success ratio is a great way to do so.

Super 8

This chain of hotels is one of the largest worldwide. Its parent company is Wyndham Hotels and Resorts. Super 8 by Wyndham offers many amenities to make your stay more comfortable, whether you’re on the road for business or pleasure. That’s why it’s one of the most profitable franchises. A brand name that sticks out to most people and one that has proven successful with an 88:1 loan success ratio.

Red Roof Inn

Red Roof inn is synonymous with its ability to provide very affordable and quality lodging. Despite its lower prices, it still comes as a very positively reviewed player in the market, which makes it one of the most profitable franchises. It is no secret for every 83 loans paid in full, only 1 has been charged off.

Jersey Mike’s

This is a chain of sub sandwich style restaurants that highlights tasty beefs, bacons, turkey breast and much more. At Jersey Mike’s you will not only be eating good, but you are bound to have a successful franchise served on your plate nice and hot. Jersey Mike’s shows a great 74:1 paid in full to charged off ratio.

Allstate Insurance

A highly renowned brand in the insurance industry and one that usually dominates the market share. On top of its financial services, its unique selling proposition is its car insurance category. They hold a strong 63% paid in full rate and a 66:1 loan success ratio from paid in full to charged off counts.

Dunking Donuts

What more is there to say about this company? Probably one of the most profitable franchises that you can invest in. It is recognized, credible, and a reliable brand. You can assure that their coffees or their top-notch baked goods are the only things satisfying your needs. They carry a strong loan success ratio of 126 paid-in-full loans for every 2 charged-off loans with an obvious 75% paid-in-full rate.

Honorable Mentions: Little Caesar’s Pizza, Days Inn, Plato’s Closet, Motel 6, Dairy Queen, Home Instead Senior Care, Papa Murphy’s Take & Bake Pizza, Great Clips, Subway, Jimmy John’s

Conclusion

In summary, there are many takeaways from these top 20 most profitable franchises. While most carry a paid in full rate greater than at least 30%, what sets their success apart is their ability to keep their charged off rates extremely low.

Looking at the data, there is not a single franchise in this ranking that has a charged off rate that’s great than 2%. This demonstrated a strong and secure ability that any investment, from a lender’s perspective, with be financially profitable through its loan repayment schedule plus interest.

Having multiple or significant locations evidently provide higher loan success ratios. The travel & hospitality, food & beverages, business services and the healthcare services predominantly have high levels of probable loan success as shown. However, given the COVID-19 pandemic, we expect a higher charge off rate for travel & hospital as well as fitness franchises.

Best Franchises

Many of the bigger and high revenue generated businesses are frequently franchised. It is important to look at financial stability and historical performance of financial strength, management, brand recognition and market presence in order to assess the loan and business success for any particular franchise. The ability to pay back your loans in full plus interest is looked upon very favorably for your future financing options and entrepreneurial endeavors. This shows credibility, reliability and strong financial management for the franchise. Making it a lucrative business for the top banks and lenders in the nation in addition to your best franchises of choice.

Analysis Provided By: Alex Bourhas, Data Analyst, Vetted Biz Intern

Guidelines of Analysis: 

• Paid-in-full Counts (PIF Counts) are the loan is fully paid off by the small business owner including interest, indicating financial strength
• Charged-off Counts (CHGOFF Counts) are the loan counts that default where loans have no confidence in being paid off by the small business or franchise owners

• Loan Success Ratios are ranked in descending order (best to worst)
• Analysis time frame: From 2010 up to 2020 (