10 Best Retail Franchise 2024
Some of the best retail franchise opportunities are those that have a great ROI, a great reputation, a solid customer base, etc.
And if you are hoping to invest in a retail franchise in 2024, then the options listed in this guide are some of the best retail franchise options that you will find anywhere online.
So make sure to scan and weigh all these options to find out which retail franchise will be the best for you.
Table of Contents
The UPS Store
| Founded | 1980 |
| Franchising Since | 1982 |
| Estimated Outlets | 5,500+ |
| Initial Investment | $87,461 – $476,993 |
| Franchise Fees | $29,950 |
| Liquidity | $75,000-$125,000 |
| Royalty Fees | 5% |
The UPS Store is the world’s largest franchisor of retail postal, printing, shipping, and business service centers.
Originally, The UPS Store was named the Mail Boxes Etc. and was launched in 1980 as a convenient alternative to the post office. The company became a success, and by 2003, it had expanded to 3,000 locations.
Today, you can own this successful business by investing between $87,461 and $476,993, depending on the type of business model you choose to open. This is quite affordable compared to the Circle K franchise.
And the best part is that the UPS Store franchise was ranked #4 in Entrepreneur magazine’s annual “Franchise 500” list in 2023. This proves how successful this business is.
Circle K
| Founded | 1979 |
| Franchising Since | 1999 |
| Estimated Outlets | 15,000+ |
| Initial Investment | $1,383,500 to $4,846,500 |
| Franchise Fees | $25,000 |
| Liquidity | $100,000 |
| Royalty Fees | 3.5% or $1,500/business |
Founded in 1979, Circle K is one of the best and oldest convenience retail store franchises that you can invest in.
The initial investment required to start a new Circle K franchise is between $1,383,500 and $4,846,500. And if you wish to convert an existing store into a Circle K franchise, then the investment range would be $268,500 and $3,029,500.
Circle K is also looking to expand internationally. So, if you have a minimum net worth of $ 1000,000 and a minimum liquid capital of $100,000, then you can apply for this profitable retail franchise.
Orangetheory
| Founded | 2007 |
| Franchising Since | 2010 |
| Estimated Outlets | 1,500+ |
| Initial Investment | $451,000 – $1.5 Million |
| Franchise Fees | $59,950 |
| Liquidity | $350,000 |
| Royalty Fees | 8% |
Orangetheory is one of the best fitness retail franchises. It was founded in 2007 by physiologist Ellen Latham.
This fitness franchise has taken the world by storm with its science-based workouts and has more than 1,500 studios in 25 countries across the globe.
Because of strong growth demand from existing franchise partners, the development opportunities are limited. And to be eligible for Orangetheory franchise, you need to have a minimum liquid capital of $350,000 and liquid cash of 1 million.
If you meet their eligibility criteria, then you can apply for this successful and profitable franchise. However, you must know that due to too many applicants, the chances of selection for this franchise are quite low.
Sonic Drive-In
| Founded | 1953 |
| Franchising Since | 1959 |
| Estimated Outlets | 3,549+ |
| Initial Investment | $1,714,200 – $3,370,900 |
| Franchise Fees | $45,000 |
| Liquidity | $500,000 |
| Royalty Fees | 1% – 5% |
Sonic Drive-in is a fast food chain and one of the best retail businesses in the QSR industry to invest in.
Founded in 1953, Sonic has been at the forefront of the fast-food industry by updating new menu items and innovative marketing campaigns.
Sonic offers single and multi-unit franchise opportunities for both traditional and non-traditional settings. As a Sonic Drive-in franchisee, you can expect to undergo eight weeks of training that will equip you with the skills needed to run this business smoothly.
If you are looking to open a successful retail business in the QSR industry, then Sonic is best for you.
Ace Hardware
| Founded | 1924 |
| Franchising Since | N/A |
| Estimated Outlets | 5,800+ |
| Initial Investment | $579,000 – $1,900,000+ |
| Franchise Fees | $5,000 |
| Liquidity | $250,000 |
| Royalty Fees | No royalty fees |
Ace Hardware is one of the world’s largest hardware retail store franchises, with stores spanning across 5,800+ locations.
This hardware franchise has a very successful business model and has received multiple awards and recognition. This franchise was ranked #5 on Entrepreneur’s Franchise 500 list, #3 on Franchise Direct Top 100 Global Franchises list, and so on.
Surely, the investment amount of Ace Hardware franchise is quite high, but the franchisor does not charge any ongoing royalty or franchise fee, which sets them apart from the rest.
Apricot Lane Boutique
| Founded | 1991 |
| Franchising Since | 2004 |
| Estimated Outlets | 100+ |
| Initial Investment | Starts at $150,000 |
| Franchise Fees | $39,500 |
| Liquidity | $50,000 |
| Royalty Fees | 5.5% |
Apricot Lane Boutique is a great retail franchise opportunity in the clothing industry. With investment starting at just $150,000, this is one of the most affordable franchises you can find in this niche.
This clothing franchise started as a small gift shop in California and has now expanded to more than 100 locations.
To be eligible for this franchise, you only need liquid cash of $50,000, which is less than all the options we have shared till now.
Also, they charge a royalty fee of only 5.5%, that too on bi-monthly basis. All these benefits make the Apricot Lane franchise worth considering.
Pet Supplies Plus
| Founded | 1988 |
| Franchising Since | 1989 |
| Estimated Outlets | 625+ |
| Initial Investment | $440,600 to $1,315,200 |
| Franchise Fees | $49,900 |
| Liquidity | $300,000 |
| Royalty Fees | 2% |
Founded in 1988, Pet Supplies Plus is one the largest retail pet franchises in the U.S.
Pet Supplies was also awarded the #1 spot in the Entrepreneur Magazines Franchise 500 list in 2023, which shows how great this franchise opportunity can be.
According to the company’s website, the average volume of sales of Pet Supplies Plus franchise owners is $2.7 million, and you can expect to make this kind of figure from this franchise, too.
The initial investment for this franchise is on the higher end. However, the low royalty fees of 2% make up for it.
7-Eleven
| Founded | 1927 |
| Franchising Since | 1983 |
| Estimated Outlets | 71,000+ |
| Initial Investment | $50,000 to $750,000 |
| Franchise Fees | $25,000 |
| Liquidity | $150,000 |
| Royalty Fees | N/A |
7-Eleven is another popular and profitable convenience store retail franchise known for being open 24/7, 365 days.
The initial investment for a 7-Eleven franchise will vary depending on the type of 7-Eleven store that you wish to open.
To be eligible, you are required to meet certain criteria. This includes having a net worth of $150,000 or more, along with having a solid net worth.
If you are willing to open a convenience store retail franchise, then you can visit the franchisor’s website for more details.
Dairy Queen
| Founded | 1940 |
| Franchising Since | N/A |
| Estimated Outlets | 6,000+ |
| Initial Investment | $1,511,200 – 2,533,400 |
| Franchise Fees | $45,000 |
| Liquidity | $400,000 |
| Royalty Fees | 4% |
Founded more than 80 years ago, Dairy Queen is one of the most popular multinational fast-food retail chains in the U.S.
Dairy Queen has been running smoothly for so many years, which shows how successful their business model is.
As a DQ franchisee, you can benefit from industry-leading franchise support, management, and employee training programs, multiple-unit development opportunities, and more.
To be eligible for a DQ franchise, you need to have a minimum liquid cash of $400,000 and a net worth of $750,000. Overall, if you are looking for quick growth and success, this retail franchise is just for you.
Great Clips
| Founded | 1982 |
| Franchising Since | N/A |
| Estimated Outlets | 4,100 |
| Initial Investment | $183,400 – $394,400 |
| Franchise Fees | $20,000 – $35,000 |
| Liquidity | $75,000 |
| Royalty Fees | 6% |
Founded in 1982, Great Clips is a popular retail franchise in the haircut industry that you can invest in.
With an initial investment starting at just $183,400, Great Clips franchise is also one of the most affordable retail franchise options that we have shared till now.
To be eligible for this franchise, you must have a minimum liquid cash of $75,000 along with a net worth of $300,000.
When Should You Choose Retail Franchise?
Here are some questions to consider before you invest in a retail franchise:
Do You Mind Having Limited Control Over Your Business?
When you buy a franchise, you are required to adhere to the rules and standards set by the franchisor. This includes following the working hours, recipes, advertisements, etc.
If you are okay with having limited control over your business, only then invest in a franchise. Otherwise, you should start your own independent business.
Do You Have The Needed Investment?
As you can see, most retail franchises in this guide require a hefty investment. And if you want to invest in a profitable business with lower risk, then you must arrange the needed capital.
If you do not meet the financial requirements of your desired retail franchise, then you need to figure out what loan or financing options you have.
Things You Need To Know Before Choosing A Retail Franchise
Here are some things that you must find out about before investing in a retail franchise or any franchise for that matter:
Royalty And Marketing Fees
When you invest in a franchise, you are supposed to pay a fixed percentage of monthly royalty and marketing fee (2% to 10%). The franchisor charge this fee in return for the brand name and business model he is allowing you to use.
Make sure the retail franchise you choose has a royalty and marketing fee on the lower side of the bracket.
Failure Rate
The failure rate of a franchise is defined by the total number of franchised outlets that open and close in a given year.
So, you should choose a franchise that has a low or zero failure rate only. This will save you from very risky options.
Payback Period
The next thing to keep in mind is the payback period of the franchise you want to investing in.
Consider the initial investment and revenue to calculate the payback period of the franchise you are interested in. And try to invest in a retail franchise that has a payback period of 5-6 years or less for the best ROI.
Wrap Up
The 10 best retail franchise opportunities that we have shared in this guide consist of options from multiple niches and industries. But you must do thorough research before investing in any franchise.
This includes revising the financials of the company, reading the FDD carefully, and asking and finding out the payback period, failure rate, etc.
We hope the options mentioned in this guide were useful to you.
FAQ’s
How Much Does A Retail Franchise Cost?
The cost of investment for a retail franchise varies depending on the business you choose to invest in. Based on the options we have shared in this guide, however, you can expect to invest anywhere between $50,000 and $3,370,900 on average for a retail franchise.
How Much Can I Make From A Retail Franchise?
The money that you can make from a retail franchise varies depending on the brand you invest in. However, on average, you can expect to make a six-figure income from a retail business easily.
Is Retail Business Profitable?
Yes, retail businesses are very profitable, and generally, retail business owners reap more profits than wholesalers. Wholesalers typically have a profit margin of 10% to 30%, whereas Retailers have a profit margin of 20% to 50%.
Which Is The Cheapest Retail Franchise To Own?
As per the retail franchises mentioned in this guide, Great Clips is the cheapest retail franchise to own, with investments ranging from $183,400 to $394,400.
What Is The Profit Margin In The Retail Industry?
The retail industry’s profit margin usually ranges from 20% to 50%. However, this could vary depending on the franchise you are investing in and the services that they offer.
