Annual Industry Report

State of Franchising 2025

The definitive data report on the US franchise industry. Investment costs, fee structures, growth trends, and industry breakdowns — all derived from Franchise Disclosure Document analysis.

829

Brands Analyzed

303K+

Total Locations

$676,197

Median Revenue

6.0%

Median Royalty

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Executive Summary

This report analyzes 829 franchise brands with successfully parsed Franchise Disclosure Documents (FDDs), representing 303,208 franchise locations across 17 industries.

Key Findings

  • Median franchise revenue is $676,197 per year (based on 592 brands reporting Item 19 data), with top performers exceeding $5M annually.
  • Median total investment ranges from $204,693 to $459,750, with significant variation by industry.
  • Royalty fees cluster around 6.0% median, with QSR brands often exceeding this benchmark.
  • 77% of brands provide Item 19 Financial Performance Representations, giving prospective franchisees revenue data.
  • Top growth industries include Entertainment, Home Services, Pet Services.
  • The largest franchise networks include McDonald's, H&R Block, Dunkin' — each with thousands of locations nationwide.

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Market Overview

Brands with FDD

829

Total Locations

303,208

Avg Units/Brand

368

Industries Covered

17

Brands by Industry

Total Units by Industry

Revenue Analysis

Revenue is the metric franchise buyers care about most. Based on Item 19 Financial Performance Representations from 592 brands that disclose this data:

Median Revenue

$676,197

Top Performer

$13,000,000

Brands Reporting

592

Distribution of Median Annual Revenue

💰Top 20 Brands by Median Revenue

#BrandIndustryMedian RevenueInvestmentUnits
1PIGGLY WIGGLYFood & Beverage$13,000,000$2,041,000 - $6,664,00090
2Vital CareHealth & Fitness$9,313,436$555,750 - $1,005,735110
3First Day HomecarePersonal Care$8,908,974$138,780 - $248,0802
4Best Choice RoofingHome Services$7,880,062$117,410 - $202,01063
5CLOSETS BY DESIGNHome Services$7,205,116$154,000 - $511,00085
6GOJOE PATROLHome Services$6,998,219$90,900 - $152,1004
7Waffle CabinFood & Beverage$5,447,199$93,450 - $225,70057
8CITY WIDE FACILITY SOLUTIONSHome Services$4,798,193$226,784 - $393,084103
9Window WorldHome Services$4,682,176$123,200 - $331,000211
10Closet FactoryHome Services$4,618,860$392,500 - $663,50092
11Walk-On's Sports BistreauxFood & Beverage$4,486,284$1,554,500 - $7,016,30078
12CRUNCHHealth & Fitness$4,209,655$928,000 - $3,743,000450
13Golden CorralFood & Beverage$4,202,787$2,223,667 - $8,738,837351
14Paul Davis RestorationHome Services$3,976,094$298,800 - $804,900266
15Barrio QueenFood & Beverage$3,953,087$1,346,250 - $3,515,7508
16Generator SupercenterHome Services$3,873,570$474,950 - $868,25069
17McDonald'sFood & Beverage$3,838,000$1,471,000 - $2,728,00013,559
18Culver'sFood & Beverage$3,693,639$2,642,500 - $8,573,000997
19UFC GymHealth & Fitness$3,620,581$149,440 - $486,09069
20Chick-fil-AFood & Beverage$3,386,837$426,735 - $2,339,5252,684

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Best Revenue Potential

Which franchises generate the most revenue relative to their startup cost? This "Revenue-to-Investment Ratio" helps identify brands where your initial investment could generate outsized top-line revenue.

A ratio of 2.0x means the franchise generates $2 in annual revenue for every $1 of initial investment. Higher ratios suggest stronger revenue potential relative to capital deployed.

114.3x

Top performer

CruiseOne

$1,346,613 revenue / $11,780 investment

Critical: These Are Gross Revenue Figures

Revenue is NOT profit. The figures shown are top-line gross revenue — the total sales before subtracting any costs. This does not account for:

  • Cost of goods sold (COGS) — food, inventory, supplies
  • Labor costs — wages, benefits, payroll taxes
  • Rent & occupancy — lease, utilities, property costs
  • Royalty & marketing fees — ongoing payments to franchisor
  • Operating expenses — insurance, maintenance, admin

Net profit margins in franchising typically range from 5-15%. A franchise with $1M in revenue may only yield $50K-$150K in owner profit after all expenses. Always review complete Item 19 data and speak with existing franchisees about actual profitability before making investment decisions.

Top 20 Brands by Revenue-to-Investment Ratio

#BrandIndustryRevenue/InvestmentMedian RevenueInvestment (Mid)
1CruiseOneTravel & Hospitality114.31x$1,346,613$11,780
2GOJOE PATROLHome Services57.60x$6,998,219$121,500
3Best Choice RoofingHome Services49.34x$7,880,062$159,710
4First Day HomecarePersonal Care46.06x$8,908,974$193,430
5Waffle CabinFood & Beverage34.14x$5,447,199$159,575
6WSI BusinessMarketing & Advertising27.92x$2,567,682$91,950
7STROLL/GREET FranchiseMarketing & Advertising22.45x$165,399$7,368
8Elmers Breakfast Lunch Dinner Restaurant, Egg N' Joe Restaurant, or Elmer's Kitchen Breakfast Brunch Mimosas RestaurantFood & Beverage21.86x$2,622,934$120,000
9CLOSETS BY DESIGNHome Services21.67x$7,205,116$332,500
10Window WorldHome Services20.62x$4,682,176$227,100
11SYNERGY HomeCarePersonal Care20.15x$2,388,932$118,580
12Grand WelcomeReal Estate & Property Management19.54x$2,320,394$118,750
13PrideStaff® and PrideStaff Financial®Education & Training16.20x$2,397,604$148,025
14CITY WIDE FACILITY SOLUTIONSHome Services15.48x$4,798,193$309,934
15One Hour Air Conditioning and HeatingHome Services15.39x$2,226,902$144,697
16Hallmark Homecare LLCHealth & Fitness14.18x$2,758,297$194,500
17Two Maids & A MopHome Services13.91x$1,692,352$121,665
18Ameriprise Financial ServicesFinancial Services13.12x$949,118$72,367
19ASP - America's Swimming Pool CompanyHome Services12.86x$1,894,318$147,258
20Home InsteadHome Services12.54x$2,261,503$180,395

Investment Analysis

Initial investment requirements vary significantly across the franchise industry. The median investment range is $204,693 $459,750, but some industries (like QSR and hospitality) typically require substantially higher capital.

Distribution of Initial Investment (Midpoint)

Median Low Estimate

$204,693

Median High Estimate

$459,750

Median Franchise Fee

$40,500

Distribution of Initial Franchise Fee

Fee Structures

Ongoing fees are a critical factor in franchise profitability. The median royalty fee is 6.0% of gross sales, while marketing/advertising fees average around 3.5%.

Royalty Fee Distribution (%)

Marketing Fee Distribution (%)

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Industry Breakdown

The franchise landscape spans 17 distinct industries, each with unique investment profiles, fee structures, and growth trajectories. Click any industry to explore all brands in that category.

Industry Overview

IndustryBrandsTotal UnitsMedian InvestmentMedian RevenueAvg YoY Growth
Food & Beverage206119,126$697,800$1,122,966+8.9%
Home Services15841,204$164,788$556,955+63.4%
Health & Fitness11633,054$372,971$539,716+42.9%
Education & Training7911,558$141,387$413,677+24.7%
Personal Care4615,778$504,084$544,679+13.7%
Travel & Hospitality4319,812$14,727,800$812,556+22.0%
Real Estate & Property Management327,646$141,393$297,855+5.1%
Specialty Retail284,555$361,950$855,551+14.7%
Pet Services272,719$387,625$546,335+46.3%
Environmental Services254,133$178,600$463,605+22.2%
Automotive Services2413,365$390,462$913,607+35.2%
Marketing & Advertising2410,413$171,438$776,958+3.7%
Technology Services81,593$152,475$967,208+26.8%
Financial Services716,716$119,850$187,224+5.2%
Insurance Services31,447$87,250$113,420+1.1%

Top Industries & Leading Brands

Food & Beverage

206 brands • 119,126 total units

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Median Investment

$697,800

Median Royalty

5.3%

Avg YoY Growth

+8.9%

Health & Fitness

116 brands • 33,054 total units

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Median Investment

$372,971

Median Royalty

6.5%

Avg YoY Growth

+42.9%

Personal Care

46 brands • 15,778 total units

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Median Investment

$504,084

Median Royalty

6.0%

Avg YoY Growth

+13.7%

Growth Analysis

Year-over-year unit growth is calculated from Item 20 outlet data in each FDD. While most brands show modest growth, a subset are expanding rapidly.

YoY Unit Growth Distribution

Top 10 Fastest Growing Brands (YoY %)

Top 20 Largest Franchise Networks

#BrandIndustryUnitsInvestmentRoyalty
1McDonald'sFood & Beverage13,559$1,471,000 - $2,728,0005%
2H&R BlockFinancial Services8,688$34,080 - $158,75020%
3Dunkin'Food & Beverage8,499$526,900 - $1,832,5005.9%
4Domino's PizzaFood & Beverage7,068$156,450 - $743,5005.5%
5Wendy'sFood & Beverage5,933$1,523,957 - $2,992,000
6Ameriprise Financial ServicesFinancial Services5,754$12,029 - $132,705
7Coverall North America, Inc.Home Services5,588$17,917 - $64,0485%
8The UPS Store® (Non-Traditional)Marketing & Advertising5,365$57,120 - $415,9275%
9JazzerciseHealth & Fitness5,251$2,170 - $40,74520%
10Ace HardwareHome Services5,144$603,850 - $2,001,550
11Great ClipsPersonal Care4,439$187,800 - $419,9006%
12Little CaesarsFood & Beverage4,285$446,500 - $1,817,2006%
13Stratus Building Solutions of Greater MadisonHome Services3,786$4,725 - $79,7505%
14HertzTravel & Hospitality3,485$879,300 - $15,874,000
15Sonic Drive-InsFood & Beverage3,461$1,676,000 - $3,140,9005%
16Arby'sFood & Beverage3,365$861,950 - $2,451,000
17Snap-on ToolsAutomotive Services3,344$221,751 - $500,098
18Papa Johns PizzaFood & Beverage3,291$261,165 - $853,3655%
19POPEYES LOUISIANA KITCHENFood & Beverage3,177$504,545 - $3,923,2455%
20Cruise PlannersTravel & Hospitality3,009$1,945 - $20,505

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Closures & Contractions

Not all franchises grow. Some brands are actively closing locations — which can signal market challenges, strategic restructuring, or declining demand. Understanding which brands are contracting is as important as knowing which are expanding.

The table below shows brands with the most net unit closures year-over-year, based on Item 20 outlet data. Only brands with at least 20 units in the prior year are included.

Context Matters

Net closures don't always indicate franchise failure. Brands may be strategically consolidating, exiting underperforming markets, or transitioning business models. Always review the full FDD and speak with existing franchisees before drawing conclusions.

Disclosure Signals

The FDD contains critical disclosure items that prospective franchisees should review carefully. Here's how brands in our dataset compare on key disclosure signals.

Item 19 (FPR) Available

77.0%

Litigation Disclosed (Item 3)

57.4%

Bankruptcy Disclosed (Item 4)

7.4%

Important Note

Disclosure of litigation or bankruptcy is not necessarily a red flag — it indicates transparency and may relate to resolved matters. Always review Item 3 and Item 4 in full and consult with a franchise attorney before investing.

Methodology

Data Sources

All data in this report is derived from Franchise Disclosure Documents (FDDs) filed with state regulators. We parse and extract structured data from each FDD, including:

  • Item 5: Initial Fees (franchise fee)
  • Item 6: Other Fees (royalty, marketing fees)
  • Item 7: Initial Investment ranges
  • Item 19: Financial Performance Representations (when provided)
  • Item 20: Outlets and Franchisee Information (unit counts by year)
  • Item 3: Litigation history
  • Item 4: Bankruptcy disclosures

Filters Applied

This report includes only brands with successfully parsed FDDs. Brands without a current FDD on file or with parsing errors are excluded from all calculations.

Calculations

  • Median investment: Calculated using the midpoint of each brand's low-high investment range where both values are available.
  • YoY growth: Computed from Item 20 outlet counts, comparing the two most recent years of data available for each brand.
  • Industry averages: Simple arithmetic means of brands within each industry category.

Limitations

This report reflects publicly available FDD data and may not capture recent developments post-FDD filing. FDD data is typically 6-18 months old at time of publication. This report does not constitute investment advice.

Report generated: February 19, 2026

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