In this article, we take a look at the 5 most profitable franchises to buy in 2023. To see our detailed analysis of franchises alongside some other entries in this list, go ahead and click the 10 Most Profitable Franchises To Buy in 2023.
5. The Wendy’s Company (NASDAQ:WEN)
Category: Fast Food Franchises
Number of Franchises: 6,949
Annual Sales: $12.5 billion
Initial Franchise Cost: $320,500 – $698,500
The Wendy’s Company (NASDAQ:WEN) is an American holding company for the major fast food chain Wendy’s. Its headquarters are in Dublin, Ohio. The company’s principal subsidiary, Wendy’s International, is the franchisor of Wendy’s restaurants. During the first three quarters of 2022, The Wendy’s Company (NASDAQ:WEN) successfully incorporated 131 new restaurants into its network and anticipates having a total of 8,000 to 8,500 restaurants by the end of 2025. Additionally, for the three-month period ending on October 2, 2022, the company achieved a revenue of $533 million, resulting in a net income of $51 million.
4. McDonald’s Corporation (NYSE:MCD)
Category: Fast Food Franchises
Number of Franchises: 40,000
Annual Sales: $112.5 billion
Initial Franchise Cost: $521,000 – $2,503,000
McDonald’s Corporation (NYSE:MCD) is an American multinational fast food chain, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. The biggest fast-food restaurant franchise in the world, it began with a single drive-in restaurant in San Bernardino, California in 1955 and has since grown to nearly 40,000 locations across more than 100 countries globally and serves more than 60 million customers annually.
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3. Ace Hardware Corporation
Category: Home Services
Number of Franchises: 5,555
Annual Sales: $22.38 billion
Initial Franchise Cost: $579,350 – $1,913,000
Ace Hardware Corporation is an American hardware retailers’ cooperative franchise based in Oak Brook, Illinois, United States. It is the world’s largest hardware retail cooperative, and the largest non-grocery American retail cooperative. On February 15, 2023, Ace Hardware Corporation reported record fourth quarter 2022 revenues of $2.2 billion, an increase of $124.5 million, or 6.0%, from the fourth quarter of 2021. Additionally, the company’s full year revenues came in at a record $9.2 billion, an increase of $575.6 million, or 6.7%, from 2021 revenue.
2. United Parcel Service, Inc. (NYSE:UPS)
Category: Business Services Franchises
Number of Franchises: 5,465
Estimated Annual Sales: $3.45 billion
Initial Franchise Cost: $218,148 – $476,993
United Parcel Service, Inc. (NYSE:UPS) is an American multinational shipping & receiving and supply chain management company founded in 1907. Originally known as the American Messenger Company specializing in telegraphs, UPS has grown to become a Fortune 500 company and one of the largest shipping courier franchises in the world that provides land, air, and ocean freight transportation services through its roughly 5,465 units across the globe.
1. Chick-fil-A
Category: Fast Food Franchises
Number of Franchises: 2,928
Estimated Annual Sales: $17.09 billion
Initial Franchise Cost: $518,385 – $2,803,435
Chick-fil-A is an American fast food restaurant chain and the largest chain specializing in chicken sandwiches. Headquartered in College Park, Georgia, Chick-fil-A operates 2,928 restaurants across 48 states, as well as in the District of Columbia and Puerto Rico. Despite facing various controversies and boycott attempts, Chick-fil-A retained its position as the nation’s preferred fast food chain for the eighth consecutive year, according to the 2022 American Customer Satisfaction Index.
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