50 Franchises Recognized for Strong Financial Performance and High Franchisee Satisfaction in an Independent Survey of Nearly 38,000 Franchise Owners
October 5, 2023—Portsmouth, NH — Franchise Business Review, a leading, independent market research firm serving the franchise sector, has released its 2023 Most Profitable Franchises award winners list.
Franchise Business Review (FBR) provides franchise ratings and reviews based on survey research that measures franchisee satisfaction and overall brand performance. The research firm publishes rankings of the top franchises in its Franchise Buyer’s Guide and recognizes award-winning brands throughout the year.
FBR analyzed 18 months of data from 385 leading franchise brands representing over 38,000 franchise owners to identify the companies for the lauded Most Profitable Franchises award. Franchise owners were asked 33 benchmark questions about their experience and satisfaction regarding critical areas of their franchise systems, including leadership, financial opportunity, training, marketing support, operational support, and franchise culture.
In addition to ranking above the benchmark for franchisee satisfaction, criteria for the Most Profitable Franchises List also considered overall investment level and average owner incomes. All brands on the list have at least 25% of their franchise owners earning annual incomes of $150,000 or higher.
Key findings from Franchise Business Review’s research include:
The average annual income of franchise owners is $102,910
The average annual income of franchise owners beyond the first two years (startup period) is $115,688
The average annual income of franchise owners who own 2-4 franchise units is $142,638
The average annual income of franchise owners who own 5+ units is $214,418
The data also shows that franchisees from the 50 Most Profitable Franchise brands rate their satisfaction with their overall financial performance 19% higher than brands not on the list, and 9 out of 10 (90%) would “Recommend their franchise to others.”
“Overall, franchisee income numbers are down slightly, by five percent from last year,” said Eric Stites, founder and CEO of Franchise Business Review
“Which is not surprising given inflation and labor increases. However, larger, multi-unit franchises are fairing better this year, with reported incomes up by about five percent. It’s important to keep in mind the income franchise owners can earn over time as they build equity in their businesses—to look at the whole investment and the long-term value of a business. Much of the wealth that business owners ultimately realize comes from long-term equity, which they cash out when they sell the business.”
See the complete list of 2023 Most Profitable Franchises here: https://franchisebusinessreview.com/lists/most-profitable-franchises
Research on the Top Franchises for 2024 is now underway. Franchisors who are interested in participating should visit: https://tour.franchisebusinessreview.com/franchisee-satisfaction-awards/
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About Franchise Business Review
Franchise Business Review (FBR) is a leading market research firm serving the franchise sector. FBR measures the satisfaction and engagement of franchisees and publishes various guides and reports for entrepreneurs considering an investment in a franchise business. Since 2005, FBR has surveyed hundreds of thousands of franchise owners and over 1,100 leading franchise companies. FBR publishes free and unbiased franchisee satisfaction research reports throughout the year online at http://www.FranchiseBusinessReview.com. To read our publications, visit https://franchisebusinessreview.com/page/digital-guides/
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