14 Most Profitable Franchises to Buy in 2016

Looking for the most profitable franchises to buy in 2016? Good, you’ve come to the right place as we are going to take a look at the best investment opportunities in the current year. This year’s list of best franchises to invest in is very similar to our previous list of 15 most profitable franchises to buy in 2015, nevertheless, there are changes in the rankings. Since most of these franchises have been among the most successful ones in the previous years too, it is only natural to assume that the quality is the most important factor in any business. And small changes in the rankings only represent how the market needs switch a little bit, but never completely change. Hence, picking some renowned franchise from our list for your investment should probably turn to be a smart choice.

If you are still wondering about franchising, instead of conducting your own small private business, think again. Although starting a business from scratch sounds tempting and challenging, and it would bring you more satisfaction upon achieving success, the chances are that by franchising, you would have faster success and fewer risks, because of already affirmed brands. But, that doesn’t mean that investing in a successful franchise guarantees a serious money return and success. When it comes to business plans, you can never really tell what will happen and will you have luck on your side, but you can always calculate bigger and smaller risks.

In order to find out which are the most profitable franchise to buy in 2016, we have, once again, relied upon Entrepreneur’s recommendations, and decided to also include a ranking of each franchise from last year so that you can more easily be aware of the changes. Further, we’ve provided you with the estimated info on startup costs for every franchise on our list of most profitable franchises to buy in 2016 below. Without further ado, let’s take a look at good investment opportunities in 2016 for those who can afford it!

14. Ace Hardware Corp.

Startup costs: $239K – 1.6M

2015 Rank: 29

If you own a house, then you know how it goes – there is always something to be fixed, hence hardware stores in every neighborhood are always needed. Ace Hardware is aware of that, and they have succeeded to enlarge their business, currently owning and operating more than 1000 stores in 7 countries. To their customers, they offer not only a variety of tools for maintaining houses and gardens, but also, if needed, professional advice from skillful salespersons. Investing in Ace Hardware Corp. may be the right move for you since the brand has a tradition long 92 years, and it is franchising for 40 years.

13. Jack in the Box

Startup costs: $1.3M – 2.4M

2015 Rank: 4

Most of the franchises on this list of most profitable franchises to buy in 2016, and in the rankings from previous years are food oriented. This comes as no surprise, as food is one of our basic necessities and in these modern times, less and less people are willing to find some time for home food preparation. Hence, fast food chains or fancy restaurants are usually very profitable businesses. Jack in the box is one such business – a fast food restaurant chain that was opened back in 1951, while it started franchising 34 years ago. If you have around $1.50 million for investment purposes, you may want to consider investing in this franchise.

12. Hardee’s

Startup costs: $1.3M – 1.8M

2015 Rank: 17

In the 12th place on this list of 14 most profitable franchises to buy in 2016 is another food-based business; Hardee’s is also a fast food restaurant chain that has seen profits from this business very soon since it started operating. Only 5 months after the first Hardee’s restaurant was opened, the company started franchising. Since then, 54 successful years have gone by, and who knows how much more will pass. If you want to be part of their success in years to come, all you need is strong determination and somewhat between $1,318,000 and $1,814,000 for initial investment purposes.

11. Pizza Hut Inc.

Startup costs: $297K – 2.1M

2015 Rank: 9

How can you go wrong with pizza? Impossible. Considering that Pizza Hut has been successfully franchising for 57 years now, one can really claim that you can never go wrong with pizza. It is always needed, whether you are having unexpected guests for dinner, whether you are throwing a party, or if you just feel like eating pizza and nothing else. So, if you are thinking of investing in some food-oriented business and you just love this Italian specialty, you may have found the perfect franchise for you. And now, let’s see what else we have on our list of most profitable franchises to buy in 2016.

10. Anytime Fitness

Startup costs: $80K – 490K

2015 Rank: 2

Next to all these great fast food chance is something that will help us burn those calories, and make our bodies slightly healthier. Gyms and fitness centers are now a days very important since many people have jobs that make them sit by their computer more than 8 hours a day. Anytime Fitness is one of the youngest franchise on this list (franchising for 14 years), but nevertheless, it has gained serious success. If you are more prone to investing in something regarding healthy lifestyle, then Anytime Fitness might be a franchise you are looking for. If that so, all you need is between $80,020 – $490,100 for the startup costs.

9. Denny’s Inc

Startup costs: $1.2M – 2.1M

2015 Rank: 8

Another food restaurant chain on our list, Denny’s, is known as a family restaurant with a rich menu. It was opened in 1953 and started franchising 10 years later.  They are known for serving any meal (breakfast, lunch or dinner) 24 hours a day, through the entire year. Offering such a variety of choices at any time of day or night, they have succeeded to attract many faithful customers, which is why they are ranked among the most profitable franchises to buy in 2016!

8. Dunkin’ Donuts

Startup costs: $217K – 1.6M

2015 Rank: 11

This time, we have a slightly different food-based business – instead of burgers, french fries, and similar fast food, Dunkin’ Donuts, as the name denotes it, is known for delicious donuts, 70 different types of them to be precise. Aside from these sweet tooth treats, at Dunkin’ Donuts you can also taste yummy sandwiches and drink great coffee. How good are their food and service, testifies the fact that they have been successfully franchising for 61 years. We’re halfway through our list of most profitable franchises to buy in 2016, and now, let’s see the other half.

7. 7-Eleven Inc.

Startup costs: $38K – 1.1M

2015 Rank: 10

As you all probably know, 7-Eleven is an international chain of convenience stores, which has been franchising for 52 years. It was opened even much earlier, back in 1927, under the name Tote’m. Later, when it changed its working hours, it changed its name, which it carries even today when it works 24 hours a day. With more than 56,500 stores across 18 countries, 7-Eleven has easily found its place among the best franchises to acquire in 2016!

6. MC Donald’s

Startup costs: $1 M – 2.2M

2015 Rank: 14

We all know that it is unhealthy, but we all like to order a nice portion of french fries and a cheeseburger at the good old McDonald’s. the next one on our list of most profitable franchises to buy in 2016. Add to this a large coke and you are hooked to come again. There is nothing much that needs to be said about this world-renowned fast food chain. Its outlets are spread all over the world (119 countries), and we all know – there is no mistake when investing in such a serious brand. For startup costs for this franchise, you will need to spend between $1,003,000 – $2,228,000.

5. Subway

Startup costs: $117K – 263K

2015 Rank: 3

In the 5th place on this list of the most profitable franchises to buy in 2016, is another food-based business, Subway. What sets Subway apart from some other fast food chains on this list are their special submarine sandwiches (subs) and salads. Subway has been franchising for 42 years, and last year it was even ranked higher on the list. For initial investments, you’ll need between $116,600 – $263,150.

4. Servrpro

Startup costs: $156 – 210K

2015 Rank: 7

Finally, among the best franchise to acquire in 2016, one franchise that has nothing to do with eating and drinking. Servpro ranks 4th on our list of most profitable franchises to buy in 2016. It is a cleaning and restoration company, which has been successfully franchising for 47 years. If you are looking for a practical type of business to start and to avoid food-based businesses, maybe Servpro is a good choice for you. For startup costs, you’ll need between $156,075 and $209,950.

3. Supercuts

Startup costs: $144K – 294K

2015 Rank: 5

Believe it or not, in the third place on our list of most profitable franchises to buy in 2016 is not another restaurant chain. It seems that as we are moving further with the list, we are discovering a variety of other businesses. Nevertheless, we are yet to see what kind of business will top this list in the end, so stay tuned. Back to our third place, we have Supercuts, which we all know is a hair salon franchise that has made its way to the top by offering its customers a unique way of a fast and inexpensive haircut. It has been successfully franchising for 37 years now. Startup costs? Between $144,400 and $293,800.

2. Hampton by Hilton

Startup costs: $4.2M – 7.8M

2015 Rank: 1

A chain of luxurious hotels, Hampton by Hilton doesn’t need a special presentation. Out of all franchises on our list, this is the one for which you will need the most money for initial investment – between $4,213,600 and $7,837,500. Considering the type of business, this is quite understandable. Hampton by Hilton has been franchising for 32 years now, which is less that many other franchises here, but being younger doesn’t seem to matter in this case considering how high it ranks each year. If your pocket is deep enough, think no more – you’ve found a very serious and a very profitable franchise to buy!

1. Jimmy John’s Sandwiches

Startup costs: $326K – 555K

2015 Rank: 6

If the previous franchise is too expensive for you, don’t worry, we have another proposition – Jimmy John’s Sandwiches, for which you need less money for startup costs, and which still promises a lot of profit. Last year Jimmy John’s Sandwiches occupied the 6th position, and now it is the most profitable franchise to buy in 2016! A food-based business that has been franchising for only 23 years (only – compared to some others here), and managed to rank this high… what more do you need?!

This wraps it up for our list of most profitable franchises to buy in 2016.