Top 20 Profitable Franchises You Should Consider

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Published on 12 Mar 2021 Time to read 12 min read Last update on 3 Mar 2023

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Have you ever wondered what it would be like to own your own franchise? Want to make sure you invest in a proven franchise with a low failure rate? Welcome to the top 20 profitable franchises.

We at Vetted Biz and Visa Franchise take pride in delivering you accessible data and information to make your entrepreneurial endeavors become a reality. We have reviewed thousands of franchise loans from the past 10 years to identify the top 20 franchises with best track record for success.

We analyzed the loan data on more than 2,000 franchise brands to see which ones proved to be a major success (and major failure!). By measuring how many franchise loans issued under the SBA 7(a) loan program were paid in full compared to how many were charged off (i.e. defaulted), we computed the SBA loan success ratio.

We have compiled an extensive list of the top 20 franchises by the SBA loan success ratio, many of which do not have a SINGLE defaulted loan.

Top 20 Profitable Franchises with the Highest Loan Success Ratios

1. Orange Theory Fitness 

Orange Theory Fitness Top 20 Profitable Franchises

Orange Theory Fitness is a very well established and continuously growing franchise in the wellness and fitness industry, recently renowned for its unique training and fitness approaches. They use a wide array of new technologies and a breadth of industry expertise, mentorship, and coaching while staying on par with the increase in athletic science. The goal the fitness model is to get active routinely to elevate the heart rate and in turn burn the dreaded calories. There’s a highly modernized approach to its business and fitness model as well as it to its brand identity.

Most notably, the franchises are highly profitable over time, boasting an outstanding 180:0 loan success ratio, among the highest in its class. In other words, on average, for every 180 loans paid in full, 0 have been charged off.  Additionally, close to 50% of loans issued to Orange Theory franchisees have been paid in full.

44.7%

Paid-in-Full Rate

0%

Charged Off Rate

180:0

SBA Loan Success Ratio

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2. The UPS Store

The UPS Store

The UPS Store is sometimes referred as the “go to” name in the industry for all your retail shipping, postal, printing, or business service logistical needs. The world’s largest packaging delivery service can help you make your delivery process as smooth, efficient, and seamless as possible. There are over 5,000 independently owned UPS Stores across North America, with a great track record of revenue streams and sustainability. They demonstrate an outstanding 170:1 loan success ratio, proving that this business can be worth your while over the short and long run of your personal and professional endeavors. On average for every 170 loans paid in full, there have been 0 charged off loans.

27.5%

Paid-in-Full Rate

0%

Charged Off Rate

170:0

SBA Loan Success Ratio

3. Ameriprise Financial 

Ameriprise Financial Top 20 Profitable Franchises

This company is there to offer you the most specialized and proven financial advisory services. Your personal or professional finances are in some of the best hands available in the industry, as on average, for every 114 loans paid in full for the firm, 0 have been charged off in the time frame of 2010-2020 Q3. The firm has had close to 350 loans that have been dished out to support the franchise’s business adventures and all those lenders have been significantly satisfied with their investment. The financial industry sector will always remain profitable and essential based on the nature of its business.

32.3%

Paid-in-Full Rate

0%

Charged Off Rate

114:0

SBA Loan Success Ratio

4. Comfort/Comfort Inn & Suites

Comfort/Comfort Inn & Suites

The “A better us, for the best you” slogan stands very true to the overall performance and reputation during Comfort Inn & Suites’ many years of success. With its friendly staff and its continuous quality and welcoming rooms and amenities, Comfort Inn has steadily captivated a large market share and has gained more of a competitive advantage in the industry.

Whether you choose to stay alone or with company, for leisure or business, or as a client or investor, it is safe to say this franchise is a good investment of time, energy, and money. With a 51.5% paid in full rate on total loans approved for this franchise, with 106 loans paid in full for 0 that are charged off, Comfort Inn remains a comfortable and secure business in the market.

51.5%

Paid-in-Full Rate

0%

Charged Off Rate

106:0

SBA Loan Success Ratio

5. Planet Fitness

Planet Fitness Top 20 Profitable Franchises

Planet Fitness operators and franchisors are reaping the rewards of the increasing demand in this day and age for a healthy and active lifestyle. The company remains incredibly profitable with immense potential to dominate the market due to its operations from its franchised, corporate owned stores as well as its equipment.

Whether you’re an athlete on the field, a mathlete in the classroom, or a surgeon in the work force, the fitness sector remains one of the fastest growing industries for health maintenance and self-improvement. Planet Fitness holds a strong 65% paid-in-full rate from all its loan counts, and for 88 loans paid in full, it has 0 that have been charged off. It seems like a smart move to get active with Planet Fitness today.

65.2%

Paid-in-Full Rate

0%

Charged Off Rate

88:0

SBA Loan Success Ratio

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6. Christian Brothers Automotive

Christian Brothers Automotive

Christian Brothers Automotive is one of the longer lasting auto service and repair companies in the industry. Founded in 1982, they take pride in putting their clients’ needs as a top priority and conducting their business with honesty, integrity, and reliability. When your car is ready from its service with them, they even offer to pick you up. This sort of empathy and accountability for their job should not go unnoticed, as on average, for every 72 loans paid in full, 0 have been charged. It’s a telling sign that the nice guys always win. Do the right thing and support your friends over at Christian Brothers Automotive.

37.9%

Paid-in-Full Rate

0%

Charged Off Rate

72:0

SBA Loan Success Ratio

7. Choice Hotels International Inn

Choice Hotels International Inn Top 20 Profitable Franchises

This hospitality franchisor is a big player in the industry. It is one the largest hotel chains and can serve as a great customer option for the upscale base or your audience. They even own the Ascend Hotel Collection among all their other popular brands. Their newly developed tag line, “Our Business Is You,” emphasizes their commitment to their clients. They boast an outstanding 75% paid-in-full rate based on all loans approved for the company. And not to forget, on average, for every 61 loans paid in full, there have been 0 charged off. Reliability, sustainability, and credibility. Definitely worth an investment if you are interested in an established player in the industry that serves all sorts of client types.

72.6%

Paid-in-Full Rate

0%

Charged Off Rate

61:0

SBA Loan Success Ratio

8. Culver’s

Culver’s

The chain known for its “Butter Burgers” and its ride array of delicious foods delivers their cooked meals with a smile. This franchisor will make you smile with its financials as well, boasting for every 51 loans paid, 0 that have been charged off. This is a noteworthy stat within a very competitive food and beverage market.

38.6%

Paid-in-Full Rate

0%

Charged Off Rate

51:0

SBA Loan Success Ratio

9. Wingstop Restaurants

Wingstop Restaurants Top 20 Profitable Franchises

This chain of restaurants is unique due to its delicious chicken wings, French fries, coleslaw, dips, and more. With locations across the United States, Wingstop has been flying high since 1994, and nothing seems to be flying away with its signature wings and its huge support base. In fact, Wingstop is still expanding across the U.S. and Mexico. They hold a strong 50% paid-in-full rate based on total loans dished out and a 51:0 paid-in-full to charged off ratio.

49.5%

Paid-in-Full Rate

0%

Charged Off Rate

51:0

SBA Loan Success Ratio

10. Quality Inn/Quality Suites Hotel

Quality Inn/Quality Suites Hotel

While they constantly preach that “your peace of mind is important to us, Quality Inn has strived to make the right decisions for their clients. A renowned name in the industry, the brand has showed no real signs of regression for the financial component of its borrowers and lenders looking to own or operate a franchise. Impressively, for every 137 loans paid in full, 1 has been charged off. Quality Inn is a noteworthy player that boasts years of experience and excellence.

45.8%

Paid-in-Full Rate

0.3%

Charged Off Rate

137:1

SBA Loan Success Ratio

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11. Sport Clips

Sport Clips

This barber franchise offers a wide range of hair services and products with a unique theme: The stylists are women, the customers are men and boys, and sports is always on TV. The franchise takes pride in providing outstanding quality service and an even better customer experience from the moment they walk in the door. This is why on average, for every 135 loans paid in full, only 1 is charged off. But the MVP stat has to be the incredible 77% paid-in-full rate based on all approved loan counts for the franchise.

76.7%

Paid-in-Full Rate

0.6%

Charged Off Rate

135:0

SBA Loan Success Ratio

12. Domino’s Pizza

Domino’s Pizza Top 20 Profitable Franchises

Since its founding in Ypsilanti, Michigan in 1960, Domino’s has been one of the most successful pizza delivery restaurants in the U.S. A renowned business model based on efficiency and fast delivery times helped propel the business to the top. Global retail sales remain through the roof at its 17,200-plus stores. It is no wonder that for every 132 loans paid in full, only 1 has been charged off.

63.8%

Paid-in-Full Rate

0.5%

Charged Off Rate

132:1

SBA Loan Success Ratio

13. Best Western Inn

Best Western Inn

Known as one of the largest chains in the industry, Best Western literally has locations all over the United States. They offer a range of quality lodging and travel services that are both affordable and reliable to their client base. Quit saving your Best Western Rewards, because an investment in this franchise will prove an impressive 118:1 paid-in-full to charged off loan status.

55.4%

Paid-in-Full Rate

0.5%

Charged Off Rate

118:1

SBA Loan Success Ratio

14. European Wax Center

European Wax Center Top 20 Profitable Franchises

This chain of hair removal salons is extremely unique and one that isn’t necessarily thought of at first as successful or sustainable. However, these wax centers are starting to turn heads through their range of unique services in skincare, body, and eyebrow components of the business model. For that reason, don’t miss the next big opportunity in a self-care industry.

32.5%

Paid-in-Full Rate

0.3%

Charged Off Rate

105:1

SBA Loan Success Ratio

15. Chevron

Chevron (Gas Station)

We do not generally recommend a gas station investment. However, Chevron gas stations have shown high levels of loan success over time. They take pride in giving their clients the best gasoline for their vehicles and acknowledge that is more of an important decision than what most think. Much like your vehicle is an investment, you expect this company to stand by that philosophy. With that said, a 92:1 loan success ratio is a great way to do so.

46.5%

Paid-in-Full Rate

0.5%

Charged Off Rate

92:1

SBA Loan Success Ratio

16. Super 8

Super 8 Top 20 Profitable Franchises

This chain of affordable motels is one of the largest worldwide and has more than 2,400 locations. Its parent company is the Wyndham Hotels and Resorts. It is a brand name that sticks out to most people and one that has proven successful with an  88:1 loan success ratio.

24.8%

Paid-in-Full Rate

0.3%

Charged Off Rate

88:1

SBA Loan Success Ratio

17. Red Roof Inn

Red Roof Inn

Red Roof in is synonymous with its ability to provide very affordable and quality lodging. Despite its lower prices, it still comes as a very positively reviewed player in the market. It is no secret that for every 83 loans paid in full, only 1 has been charged off.

33.3%

Paid-in-Full Rate

0.4%

Charged Off Rate

83:1

SBA Loan Success Ratio

18. Jersey Mike’s

Jersey Mike’s Top 20 Profitable Franchises

This is a chain of sub sandwich style restaurants that highlights tasty beef, bacon, turkey breast, and much more. At Jersey Mike’s you will not only be eating good, but you are bound to have a successful franchise served on your plate nice and hot. Jersey Mike’s shows a great 74:1 paid-in-full to charged off ratio.

29.6%

Paid-in-Full Rate

0.4%

Charged Off Rate

74:1

SBA Loan Success Ratio

19. Allstate Insurance

Allstate Insurance

Allstate is a highly renowned brand in the insurance industry and one that has had a large slice of the the market share. On top of its financial services, its unique selling proposition is its car insurance category. They hold a strong 63% paid-in-full rate and a 66:1 loan success ratio from paid-in-full to charged off counts.

63%

Paid-in-Full Rate

1%

Charged Off Rate

66:1

SBA Loan Success Ratio

20. Dunkin’ Donuts

Dunkin Donuts Top 20 Profitable Franchises

Dunkin’ Donuts, aka Dunkin’, is one of the most recognized, credible, and reliable companies in its industry. You can be assured that their coffees and baked goods will satisfy your cravings. They carry a strong loan success ratio of 126 paid-in-full loans for every 2 charged off with an impressive 75% paid-in-full rate.

75.4%

Paid-in-Full Rate

1.2%

Charged Off Rate

63:1

SBA Loan Success Ratio

Honorable Mentions: Little Caesar’s Pizza, Days Inn, Plato’s Closet, Motel 6, Dairy Queen, Home Instead Senior Care, Papa Murphy’s Take & Bake Pizza, Great Clips, Subway, Jimmy John’s

Top 20 Profitable Franchise Conclusion

Franchise USA Top 20 Profitable Franchises

In summary, there are valuable takeaways from these top 20 profitable franchises. While most carry a paid-in-full rate greater than at least 30%, what sets their success apart is their ability to keep their charged off rates extremely low.

Looking at the data, there is not a single franchise in this ranking that has a charged off rate that’s great than 2%. This demonstrates a strong and secure ability that any investment, from a lender’s perspective, will be financially profitable through its loan repayment schedule plus interest.

Having multiple or significant locations evidently provides higher loan success ratios. Travel and hospitality, food and beverage, business services, and healthcare services predominantly have high levels of probable loan success, as shown. 

Many of the bigger and high revenue generated businesses are frequently franchised. It is important to look at financial stability and historical performance of financial strength, management, brand recognition, and market presence in order to assess the loan and business success for any particular franchise. The ability to pay back your loans in full plus interest is looked upon very favorably for your future financing options and entrepreneurial endeavors.

This shows credibility, reliability, and strong financial management for the franchise, making it a lucrative business for the top banks and lenders in the nation in addition to your franchise of choice.

Analysis Provided By: Alex Bourhas, Data Analyst, Vetted Biz Intern

Guidelines of Analysis: 

  • Paid-in-full Counts (PIF Counts) mean loans fully paid off by the small business owner including interest, indicating financial strength
  • Charged off Counts (CHGOFF Counts) are the loan counts that default where loans have no confidence in being paid off by the small business or franchise owners
  • Loan Success Ratios are ranked from descending order (best to worst)
  • Analysis time frame: From 2010 up to 2020 (Q3)

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