The 2026 Franchise Disclosure Documents now cover a full year of 2025 results, and several brands disclose more than average sales. Some publish EBITDA, operating cash flow or store-level margins for franchised units. This guide looks at the most profitable franchises in the U.S. through that disclosed data, alongside startup costs and franchisee satisfaction surveys.
Rankings of the highest profiting franchises in the U.S. rarely measure the same thing. Entrepreneur’s Franchise 500 scores brands on criteria such as costs, support, brand strength and growth, and placed Jersey Mike’s Subs at No. 1 in its 2026 edition. Franchise Business Review takes another route: its 2026 Most Profitable Franchises list includes brands where at least 25% of surveyed franchise owners report annual income of $150,000 or more, combined with franchisee satisfaction benchmarks. Neither approach replaces the figures that franchisors themselves disclose in Item 19 of their FDD.
What Makes a Franchise Profitable?
Profitability in franchising results from several variables acting together. A brand with very high sales can produce thin margins, while a modest service concept can return a large share of its revenue to the owner. Four factors come up most often in franchise disclosures and industry analysis.
Revenue potential
Gross sales, often expressed as average unit volume (AUV), measure what a location brings in before any expense is paid. Profit is what remains after cost of goods, labor, rent, royalties and every other operating charge. Two brands with identical AUVs can therefore report very different outcomes for their franchise owners.
- Gross sales or revenue: total receipts of the unit, the figure most FDDs disclose
- Operating profit or EBITDA: earnings before interest, taxes, depreciation and amortization, disclosed by a minority of franchisors
- Owner income: what the franchisee actually takes home, which depends on debt, taxes and whether the owner draws a salary
Initial investment
Item 7 of the FDD sets out the estimated initial investment, line by line, from the franchise fee to equipment, build-out and additional funds for the first months. Startup costs determine how much capital or debt a franchisee carries at opening. A larger initial outlay generally lengthens the time needed to recover the investment, even when unit revenue is high.
Operating costs and royalties
Recurring expenses absorb most of a unit’s sales. Their weight varies widely by sector: labor dominates in childcare and home care, while food and packaging costs dominate in quick-service restaurants.
- Rent and occupancy: lease, common area charges, property taxes
- Labor: wages, payroll taxes, workers’ compensation and benefits
- Supplies and inventory: food, products, chemicals or materials
- Insurance and technology: liability coverage, point-of-sale systems, software fees
- Royalties and advertising fees: usually a percentage of gross sales, disclosed in Item 6, ranging from about 4% to 10% for royalties among the brands below
Business model and scalability
Some models generate predictable revenue. Childcare tuition, swim lesson enrollment, gym memberships and recurring pest-control treatments bill customers on a regular schedule. Restaurants with strong delivery and digital channels add sales without adding seats. Multi-unit ownership spreads management and overhead costs across several locations, which is why several FDDs report separate results for multi-unit operators.
Good to know
Under the FTC Franchise Rule (16 CFR Part 436), Item 19 financial performance representations are optional. When a franchisor includes them, they describe the past results of existing outlets, often a defined subset, and are not a projection of future earnings.
The 10 Most Profitable Franchises in the U.S. in 2026
The ten brands below were selected from the 2026 FDDs filed with state regulators, SEC filings and trade press coverage. Selection did not rest on systemwide sales. Priority went to brands that disclose a profit-type metric for franchised units, then to revenue relative to startup costs, recognition for franchisee satisfaction and the depth of the data available. All figures refer to calendar or fiscal year 2025.
The result is not a list of the largest systems. Several top profitable franchises by disclosed earnings operate a few hundred units, and the franchise investment required ranges from under $200,000 to several million dollars. Royalty structures, territory sizes and the outlets included in each Item 19 also differ, so the figures below are not directly comparable from one brand to the next.
| Brand | Sector | Estimated initial investment (Item 7) | Key 2025 figure disclosed |
|---|---|---|---|
| Primrose Schools | Childcare | $5,016,600 to $7,960,300 (new build, land excluded) | Top-quartile average EBITDA: $768,966 |
| Goldfish Swim School | Children’s swim lessons | $1,663,263 to $3,746,733 | Average profit before other expenses: $560,524 |
| Two Men and a Truck | Moving services | $145,950 to $512,450 (Metro Market) | Single Metro average EBITDA: $341,858 |
| Jersey Mike’s Subs | Quick-service restaurant | $436,176 to $1,162,228 | Average sales: $1.367 million |
| Great Clips | Hair care | $187,800 to $419,900 | Average operating cash flow: $83,504 |
| Wingstop | Quick-service restaurant | $310,400 to $1,048,500 | Franchised average net sales: $2.007 million |
| Culver’s | Quick-service restaurant | $3,406,350 to $10,294,100 | Average sales: $4.142 million |
| Valvoline Instant Oil Change | Automotive services | $192,375 to $3,483,550 | Franchised average net sales: $1,844,172 |
| Visiting Angels | Senior home care | $125,460 to $171,150 | 105 of 550 franchisees in the $1 million to $1.5 million revenue band |
| Planet Fitness | Fitness clubs | $1,282,500 to $5,386,000 (real estate excluded) | Upper-third franchised clubs, average dues revenue: $2,705,811 |
Sources: 2026 Franchise Disclosure Documents filed with the Minnesota Department of Commerce (CARDS), brand franchising sites, Wingstop and Jersey Mike’s SEC filings, Franchise Times Top 400 2026 (Wingstop), Entrepreneur (Culver’s investment) and QSR Magazine (Culver’s and Wingstop sales).
1. Primrose Schools
Primrose Schools operates 558 franchised early education schools. Its 2026 FDD shows strong revenue and EBITDA among top-performing schools.
Primrose Schools
The Leader in Early Education and Care.
- Personal Services
- 558
- Liquid capital: $750000
2. Goldfish Swim School
Goldfish Swim School ranks among Franchise Business Review’s 2026 Most Profitable Franchises and No. 78 in the 2026 Franchise 500. Its 2026 FDD shows strong profitability across established franchised schools.
Goldfish Swim School
The Swim School for Kids.
- Personal Services
- Not disclosed
- Liquid capital: $1500000
3. Two Men and a Truck
Two Men and a Truck is a U.S. moving and relocation franchise and one of the most profitable franchises recognized by Franchise Business Review in 2026. Its 2026 FDD reports average gross sales of $2.84M across 198 units.
TWO MEN AND A TRUCK
Movers Who Care.
- Personal Services
- Not disclosed
- Liquid capital: $150000
4. Jersey Mike’s Subs
Jersey Mike’s Subs is a leading U.S. sandwich franchise and topped Entrepreneur’s 2026 Franchise 500. Its 2026 FDD reports average sales of $1.37M across its traditional franchised restaurants.
Jersey Mike’s
A Sub Above
- Restaurant
- 198
- Liquid capital: $500000
5. Great Clips
Great Clips is a U.S. hair salon franchise ranked No. 40 in the 2026 Franchise 500. With an estimated investment of $188K–$420K, it has one of the lowest entry points on this list. Its 2026 FDD reports average operating cash flow of about $84K.
Great Clips
It's Gonna Be Great.
- Beauty – Wellness
- Not disclosed
- Liquid capital: $100000
6. Wingstop
Wingstop is a U.S. chicken-wing franchise featured among Franchise Business Review’s 2026 Most Profitable Franchises. Its 2025 annual report shows average domestic unit sales of about $2M across its franchised restaurants.
Wingstop
The Wing Experts
- Restaurant
- Not disclosed
- Liquid capital: $Not disclosed
7. Culver’s
Culver’s is a U.S. fast-food franchise known for exceptionally high unit sales. Its 2026 FDD reports average sales of about $4.14M in 2025, and the brand also appears on Franchise Business Review’s 2026 profitability list.
Culver’s
Welcome to Delicious.
- Restaurant
- Not disclosed
- Liquid capital: $500000
8. Valvoline Instant Oil Change
Valvoline Instant Oil Change is a U.S. automotive service franchise ranked No. 32 in the 2026 Franchise 500 and No. 1 in automotive services. Its 2025 FDD reports average net sales of about $1.84M across its 785 franchised centers.
Start a Valvoline Instant Oil Change
Quick, Easy, Trusted.
- Automotive
- 785
- Liquid capital: $Not disclosed
9. Visiting Angels
Visiting Angels is a U.S. non-medical home care franchise featured on Franchise Business Review’s 2026 Most Profitable and Top Franchises lists. Its 2026 FDD covers 541 franchisees, with an estimated investment of $125K–$171K.
Visiting Angels
America's Choice in Home Care
- Personal Services
- 541
- Liquid capital: $100000
10. Planet Fitness
Planet Fitness is a U.S. fitness franchise with nearly 2,900 clubs and 20.8 million members. Its 2026 FDD reports strong membership revenue across franchised clubs, while the estimated investment is $1.28M–$5.39M, excluding real estate.
Planet Fitness
Judgement Free Zone
- Sports – Leisure
- Not disclosed
- Liquid capital: $Not disclosed
How Is Franchise Profitability Measured?
No single metric captures the financial performance of a franchise. Franchisors, lenders and analysts use several indicators, each defined differently from one FDD to the next.
- Average unit volume (AUV): average annual sales per location, usually for units open a full year
- EBITDA or operating cash flow: unit earnings before financing and non-cash charges
- Store-level or four-wall margin: unit profit as a share of sales, excluding corporate overhead
- Sales-to-investment ratio: annual sales divided by the initial investment
- Cash-on-cash return and payback period: how much annual cash flow a unit generates relative to the cash invested, and how long recovery takes
Definitions matter as much as figures. Primrose, Goldfish and Great Clips exclude owner compensation from their profit metrics. Valvoline, Mosquito Squad and The Learning Experience publish profit data for company-operated units only. Averages also hide wide dispersion: across these FDDs, the lowest performers report losses or revenue far below the median. Franchisee satisfaction surveys, such as those run by Franchise Business Review, measure self-reported income rather than audited results.
Why do some rankings list different brands?
Each ranking applies its own method. The Franchise 500 weighs factors such as costs, support and growth; Franchise Business Review relies on owner surveys; FDD Item 19 data reflects past results for the outlets each franchisor chooses to include. A brand that publishes no Item 19 cannot be compared on disclosed figures, which says nothing on its own about its results.
Frequently asked questions about the most profitable franchises
Among the brands reviewed here, Culver’s reports the highest 2025 average sales, at $4.142 million per restaurant. McDonald’s reported a comparable $4.088 million for its U.S. traditional restaurants. High sales do not by themselves indicate high profit, since investment and operating costs also differ.
No. Item 19 is optional under the FTC Franchise Rule. Many franchisors publish gross sales only, some publish nothing, and a smaller group discloses EBITDA, operating cash flow or margins, sometimes for company-operated units only.
It is an annual list built from surveys of franchise owners. Brands qualify when at least 25% of responding owners report annual income of $150,000 or more and satisfaction scores meet the publisher’s benchmarks. The income data is self-reported.
This content is provided for informational purposes only and does not constitute legal, tax, financial, or professional advice. Laws and regulations vary by state and individual circumstances and may change over time. Readers should consult a qualified attorney, tax professional, or other licensed professional regarding their specific situation. Nothing herein creates an attorney-client relationship.
