The Shared Secret of 2025’s Best Franchises

Every year, Entrepreneur releases its highly anticipated Franchise 500, a ranking that celebrates the diversity and innovation of America’s best franchises. This year’s list proves that top franchises come in all shapes and sizes, offering opportunities for entrepreneurs of all backgrounds. Here’s what we’ve learned from the latest rankings.

Age is Just a Number

The best franchises span generations. Some, like A&W, have been around since 1925 and continue to thrive, while newcomers like Spark by Hilton and Lawn Pride, which launched their first franchises in 2023, are already making waves. Among this year’s rankings, eight franchises began franchising before 1955, while 92 started since 2015. It’s a testament to the fact that both time-tested and fresh concepts can succeed when done right.

Cost: From Shoestring Budgets to Mega Investments

Franchises offer opportunities for varying levels of investment. On the low end, Cruise Planners leads the pack with a startup cost as low as $1,945. In fact, eight franchises in the ranking can be started for under $10,000, spanning industries like commercial cleaning, travel agencies, and fitness.

On the other hand, some franchises require significant capital. Hilton Hotels and Resorts tops the chart with a maximum startup cost of $190.9 million. Overall, 62 of the top-ranked franchises require a minimum investment of $1 million or more, particularly in hotel and restaurant categories.

Big or Small: Both Can Win

Franchises on the list range from fewer than 100 units (85 brands) to massive networks of over 10,000 units (11 brands). Interestingly, being the biggest doesn’t always mean being the best. Taco Bell, ranked No. 1, operates 8,565 locations as of mid-2024, showing that quality and growth potential matter more than sheer size.

For context, the average franchise in the ranking has 1,269 units and opens about 33 new units a year. But the median number of units is just 269, reflecting a more realistic scale for many top franchises.

Relevance: The Common Thread

The best franchises excel by staying relevant to both customers and franchisees. They create systems robust enough to replicate at scale while remaining agile to adapt to changing markets. This is the secret sauce that ensures continued growth and innovation, no matter their age, size, or cost.

Trends in the 2024 Ranking

Several industry trends stood out this year:

• Quick-Service Food: The category grew from 104 franchises in 2023 to 111 in 2024, with 32 brands landing in the top 100. Growth is especially strong in better-for-you options like acai bowls, Mediterranean food, and beverages such as coffee and smoothies.
• Health & Wellness: This category expanded to 34 ranked franchises, including newcomers in autism treatment and mental health services.

Your Franchise, Your Future

The Franchise 500 serves as a valuable resource for anyone exploring franchise ownership. There is no single formula for the best franchise; the ideal choice depends on individual goals, budget, and passion.

Whether it’s an established legacy brand or an innovative newcomer, the possibilities are limitless.