16 Fastest Growing Franchises in the US in 2023

Published on May 21, 2023 at 10:16 am by Affan Mir in Business, Lists, News

In this article, we discuss the 16 fastest-growing franchises in the world. To skip the detailed analysis of franchising businesses, go directly to the 5 Fastest Growing Franchises in the US in 2023.

Franchising Outlook

According to the International Franchise Association’s (IFA) Franchising Economic Output Report 2023, there were approximately 790,492 franchise establishments that directly employed close to 8.4 million people in 2022. The franchising industry also provided $825.4 billion of economic output for the U.S. economy and accounted for 3% of the country’s GDP.

The franchising industry took a slight beating during the COVID-19 pandemic but immediately made a fast recovery in the following years. The industry is expected to experience healthy growth in 2023. The president and CEO of IFA said:

“Even with today’s economic headwinds, franchised businesses continue to grow, providing more good-paying jobs for their employees, and serving their local communities […] After an historic year of growth during the post-pandemic recovery, the size of the franchise economy in 2023 will exceed pre-pandemic levels – demonstrating the power of the business model for prospective business owners when franchisors and franchisees work together.”

In 2023, the number of franchise establishments is expected to increase by 1.9% and reach 805,436. The number of direct jobs in the industry is expected to increase by 3% to 8.69 million. Furthermore, it is expected to support $860.144 billion of the US economic output according to the IFA.

The quick-service restaurants (QSR) have dominated the franchise industry over the years and in 2022 there were approximately 192,057 establishments related to the segment which are expected to grow the most in 2023 at 2.5%. The QSR segment is also projected to be responsible for 45.3% of the total direct employment in the franchising industry and generate $289.6 billion in 2023. The QSR segment is followed by the retail food, products, and services segment which is expected to account for 13% of the direct employment in the franchising industry and generate an output of $134.1 billion.

Owning a Franchise

To own a franchise, each business has its own terms including an initial franchise fee, a minimum net worth requirement, and a minimum liquid assets requirement. Each business also has a basic and ad royalty fee which varies from company to company. Most businesses offer online applications to apply for a franchise which is easily accessible from their respective websites. The businesses also provide a rough idea of the initial investment required to make the franchise operational.

There are thousands of businesses in the United States that offer franchising services to individual entrepreneurs and investors. We mentioned the most profitable of them in our list of 20 Most Profitable Franchises in the World that include the likes of RE/MAX Holdings, Inc. (NYSE:RMAX), Marriott International, Inc. (NASDAQ:MAR), McDonald’s Corporation (NYSE:MCD), and a few subsidiaries of Yum! Brands, Inc. (NYSE:YUM).

16 Fastest Growing Franchises in the US in 2023

Pixabay/Public Domain

Our Methodology

To create this list we used six reliable sources (1,2,3,4,5,6) and each of the items listed in our article are among the top 16 in at least one of these lists. We calculated the number of times each company is listed in these sources and calculated the aggregate position of each of these companies according to their position in each of the sources.

We listed the companies in the ascending order of their 3-year growth according to Entreprenuer.com. However, we did not take their percentage of growth as a basis for choosing these companies because the percentage would not give accurate numbers. For example, if a business has 10 units and it adds 5 more units in three years its percentage growth would be the same as a business that has 1000 units and adds 500 units in three years.

Fastest Growing Franchises in the US in 2023

16. HomeVestors of America, Inc.

3-year growth: 4.8%

HomeVestors of America, Inc. is a Texas-based real estate investing franchisor. The company operates in 46 states and has over 1,100 franchises. The company helps new investors to operate their real estate business as HomeVestors franchisees. To own a HomeVestors franchise, the minimum liquid cash requirement is $80,000, and the company requires a net worth of $80,000 – $456,250, which is also the initial investment required. The franchise fee is $39,000 – $80,000 and allows a 10% veteran discount. The franchise fee depends on whether an individual wants an associate or a full franchise. The royalty fee for a franchise is variable, and the franchise agreement term lasts 5 years and is renewable.

15. The UPS Store

3-year growth: 5.8%

The UPS Store is a franchised subsidiary of United Parcel Service, Inc. (NYSE:UPS), an American shipping and supply chain management company. To become a UPS franchisee, there is no minimum net worth requirement but a minimum liquid capital of $75,000 – $150,000 is required, depending on the location. To start up a franchise, the initial investment required is $247,306- $476-993 for traditional locations, $218,148 – $419,226 for rural locations, and $101,818 – $310,779 for store-in-store locations.

14. Mathnasium Learning Center

3-year growth: 5.8%

Mathnasium Learning Center is an American education company that operates learning centers for pre-kindergarten students to high-school students in North America, South America, Europe, the Middle East, and Asia. The company’s primary focus subject is mathematics.

Mathnasium requires an initial franchise fee of $49,000 with a 12% veteran discount and an initial investment of $112,860 – $149,155. To become a franchisee, the minimum net worth required is $149,110., and a liquid capital of $112,750.

13. Ace Hardware Corporation

3-year growth: 6.7%

Ace Hardware Corporation is the world’s largest hardware retail cooperative. In 2022, the company made sales of $9.2 billion and made $345 million in patronage distributions. The company was founded in Chicago, Illinois in 1924 and started its international operations in 1990. Now the company has operations in North America, Asia, the Caribbean, Latin America, and the Middle East.

To own an Ace Hardware Corporation franchise, the minimum net worth required is $400,000, and $250,000 in liquid capital. The initial investment required to open up the franchise is $292,000 to over $1.62 million. The company does not require any royalty or franchise fee.

12. Papa John’s International, Inc. (NASDAQ:PZZA)

3-year growth: 7.7%

Papa John’s International, Inc. (NASDAQ:PZZA) is one of the largest pizza delivery restaurant chains in the United States and the world. The company operate in around 50 countries across the globe. As of December 2022, the company has over 5,750 units.

To acquire a Papa John’s International, Inc. (NASDAQ:PZZA) franchise, an initial fee of $25,000 is required along with initial investment of $200,130 – $788,930. The franchisee must also have a net worth of $750,000, and $250,000 in capital assets. Papa John’s International, Inc. (NASDAQ:PZZA) franchise term lasts 10 years and is renewable afterward.

11. The Maids

3-year growth: 9.4%

The Maids is a residential cleaning company operating in over 90 cities across 45+ U.S. states and 3 Canadian provinces. According to the company website, the average-performing company franchise generated an annual revenue of over $1 million and the top-performing generated a revenue of over $6.3 million in 2021.

To become a franchisee, The Maids require $12,500 in initial license fee and an initial territory fee of $19,000 – $95,000. The total initial investment required to open up the franchise is between $81,700 – $197,250, which includes the initial fees, start-up costs, and operational expenses for the first three months. According to the company website, the company has 21 franchising opportunities across the US and Canada at the time of writing.

10. Taco Bell

3-year growth: 10.7%

Taco Bell is a California-based chain of fast-food restaurants. It is a subsidiary of Yum! Brands, Inc. (NYSE:YUM). As of December 2022, the company has close to 8,000 units across the world, and over 90% of them are owned and operated by independent franchisees.

To be a Taco Bell franchisee, a minimum net worth of $5 million and liquid capital of $2 million is required. The initial franchise fee is $25,000 – $45,000 and the initial investment required to make the franchise operational is $575,600 – $3.37 million. The term of the franchise agreement for a Taco Bell is 25 years which is not renewable.

9. Dream Vacations

3-year growth: 13.0%

Dream Vacations is a travel company that offers its customers cruise vacations, resort vacations, and guided tours along with many other services. It is one of the best and cheapest franchises on our list. The company’s initial franchise fee is between $495 – $10,500 and requires an initial investment of $1,795 – $21,000. For veterans, the company allows 30% off on franchise fees and free training for business partners and first veteran/military spouse associates. Dream Vacations also offers in-house financing to cover the franchise fee.

8. Budget Blinds

3-year growth: 13.6%

Budget Blinds provides blinds, shutters, shades, drapes, rugs, decorative grills, and several other similar products to residential and commercial customers. The company was founded in 1992 and is headquartered in Irvine, California. Budget Blinds has 1,400 franchise territories in over 10,000 cities across the US and Canada.

Budget Blinds requires franchise ownership applicants to have a minimum investment of $250,000 and $84,500 of liquid capital. The initial franchise fee is $19,950 and offers a 15% discount to veterans on it. The company’s royalty and ad royalty fee is $300-$2000/month and $1000-$1500/month, respectively. The initial investment required to make a Budget Blinds franchise operational is $140,500 – $211,750.

7. Kona Ice

3-year growth: 15.9%

Kona Ice is a mobile shaved ice company founded in 2007 and headquartered in Kentucky. The company has over 1,500 units across the United States and to own one, you need minimum cash of around $20,000. The company’s initial franchise fee is $15,000 and the initial investment required to set up the franchise is around $149,995 – $189,300. The franchise agreement term lasts 10 years and is renewable with a fee of $7,500. The company also requires $3,000 to $4,000 royalty fees per year besides $500 in ad royalty fees.

6. Floor Coverings International

3-year growth: 40.6%

Floor Coverings International provides in-home flooring to its customers. The company also offers design associates to help customers with flooring products. Owning a Floor Coverings International franchise requires a $200,000 minimum net worth and $50,000 in liquid assets. The initial franchise fee for the company is $50,000 and the initial investment required is $151,400 – $220,100.

Click to continue reading and see the 5 Fastest Growing Franchises in the US in 2023.