Franchise Examples by Industry: 2026 Brand Directory With Costs and Models
Franchise examples in 2026 span every consumer-facing industry, from quick-service restaurants (McDonald’s, Subway, Dunkin’) to home services (Mr. Rooter, Molly Maid, Servpro) to fitness (Planet Fitness, Anytime Fitness) and senior care (Home Instead, Comfort Keepers). This guide gives concrete franchise examples organized by industry, with real Franchise Disclosure Document data for each, so a prospective franchisee can see how investment, royalty structure, and unit economics actually differ across the 10 most active US franchise categories.
Most online franchise lists stop at brand names. That is useless if you are trying to write a check. A McDonald’s at $1.4M to $2.5M of build-out plus a 40% liquidity test before the franchisor will even talk to you is a different business than a Mathnasium at $113K to $153K all-in, even though both wear the same word on the door. The numbers below come from the most recent Franchise Disclosure Documents on file with state regulators in California, Minnesota, Maryland, Virginia, and Wisconsin, cross-checked against IFA’s Franchise Business Economic Outlook 2026 and FRANdata’s 2026 outlet counts.
If you are reading this because you are considering buying a franchise resale, selling a multi-unit portfolio you have built over 20 years, or trying to understand what the word “franchise” even means before you sign anything, the next 5,500 words are organized so you can skip directly to the industry that matters to you and walk away with numbers, parent-company context, and a sense of whether the unit economics fit the check you can write.
What Counts as a Franchise: The Legal Definition
Before you study franchise examples, it helps to know what is actually being sold. A franchise in the United States is defined by the Federal Trade Commission’s Franchise Rule (16 CFR Part 436) as a commercial relationship with three elements: the franchisor grants the franchisee the right to operate under a shared trademark, the franchisor exerts significant control over or provides significant assistance to the franchisee’s method of operation, and the franchisee pays at least $615 (the 2026 inflation-adjusted threshold) to the franchisor within the first six months of operation.
That three-part test is why some businesses people casually call franchises are not technically franchises. Ace Hardware is a member-owned cooperative. Best Western is a membership association. Chipotle is corporate-only and does not franchise at all. The legal definition matters because franchises trigger a federally mandated disclosure document (the FDD), 14-day pre-sale waiting period, and registration requirements in 14 states.
The FDD has 23 standardized items. For comparing franchise examples, the items you will reference most are:
- Item 1 tells you who the franchisor is, when it was formed, and what the brand history looks like.
- Item 5 lists the initial franchise fee, which is the one-time payment for the rights to operate under the brand.
- Item 6 lists every other recurring fee, including royalty, advertising contribution, technology fee, training fee, and any per-transaction charges.
- Item 7 gives the estimated total initial investment range, including the franchise fee, build-out, equipment, signage, opening inventory, and 3 months of working capital.
- Item 19 is the Financial Performance Representation. Roughly 70% of franchisors now publish an Item 19, per FRANdata’s 2026 disclosure survey. This is where you find real average unit volumes.
- Item 20 shows outlet activity for the last three years, including how many units opened, closed, were transferred, or were terminated. This is the single best leading indicator of franchisor health.
Every franchise example below cites Item 5, Item 6, and Item 7 numbers from the most recently filed FDD. When Item 19 data is publicly available, it is noted. When a brand is owned by a private equity sponsor or strategic acquirer, the parent and approximate acquisition date are noted, because parent-level capital structure affects everything from royalty pressure to refranchising programs.
The 10 Most Active Franchise Industries in 2026
The International Franchise Association’s 2026 outlook tracks roughly 821,000 franchise establishments in the United States generating an estimated $920 billion in output and employing 8.9 million people. Those numbers are not evenly distributed. Ten industry verticals account for over 80% of all franchised units, and the relative weight of each shifts every year as capital rotates between food service, services, and lodging.
| Industry | Approx. US Franchise Units | Typical Initial Investment | Typical Royalty | Representative Brands |
|---|---|---|---|---|
| Quick-Service Restaurants | ~195,000 | $230K – $2.5M | 4% – 8% | McDonald’s, Subway, Dunkin’, Taco Bell |
| Casual and Fast-Casual | ~52,000 | $315K – $1.4M | 5% – 6% | Wingstop, Five Guys, Jersey Mike’s |
| Coffee and Beverage | ~28,000 | $283K – $1.6M | 5% – 7% | Scooter’s, Smoothie King, Kung Fu Tea |
| Home Services | ~64,000 | $80K – $313K | 5% – 10% | Servpro, Mr. Rooter, Molly Maid |
| Automotive Service | ~38,000 | $214K – $575K | 5% – 7% | Jiffy Lube, Midas, Take 5 |
| Fitness and Wellness | ~41,000 | $381K – $5.1M | 6% – 7% | Planet Fitness, Anytime, Orangetheory |
| Senior Care and Healthcare | ~19,000 | $95K – $190K | 5% – 6% | Home Instead, Comfort Keepers, BrightStar |
| Education and Childcare | ~33,000 | $74K – $5.3M | 6% – 40% | Kumon, Mathnasium, Primrose, Goddard |
| Retail and Convenience | ~46,000 | $54K – $1.6M | Variable | 7-Eleven, GNC, Ace (co-op) |
| Hotel and Lodging | ~62,000 | $5M – $120M | 4% – 6% | Marriott, Hilton, IHG, Hampton |
Note that the same brand can appear in multiple categories. Dunkin’ sits in both QSR and coffee. Servpro sits in both home services and cleaning. The point of the table is to show the spread, not to claim mutual exclusivity. The franchise examples in the sections below go one layer deeper on each vertical.
Quick-Service Restaurant Franchise Examples
Quick-service restaurants are the most recognizable franchise category in the United States and the largest by unit count. The category includes both traditional drive-through burger and sandwich brands and newer modular formats. Below are the franchise examples that define the segment.
McDonald’s is the reference brand for the entire QSR category. Founded in 1955 by Ray Kroc after he franchised the original San Bernardino restaurant from the McDonald brothers, the chain operates roughly 13,500 US units, of which about 95% are franchised. The 2026 FDD shows an initial franchise fee of $45,000, an estimated initial investment of $1.4M to $2.5M depending on format (traditional, satellite, or STO), a 4% service fee (royalty), and a 4% advertising contribution. McDonald’s also requires franchisees to demonstrate at least $500,000 of non-borrowed personal liquid assets and prefers candidates with prior multi-unit operating experience. Average sales per traditional US unit ran $3.8M in the most recently disclosed period.
Subway was acquired by Roark Capital in 2024 for a reported $9.6 billion, ending more than 60 years of founder family ownership under the DeLuca and Buck families. The 2026 FDD shows roughly 20,000 US units, a $15,000 initial franchise fee, an estimated initial investment of $230,000 to $540,000, an 8% royalty (the highest in the major QSR cohort), and a 4.5% advertising fund contribution. Post-acquisition Roark has accelerated the menu refresh program, closed underperforming units, and brought the net US unit count down from a 2018 peak above 26,000. Subway is one of the more affordable QSR franchise examples by initial investment, but the royalty load and the historical territorial encroachment issues are why prospective franchisees should pay particular attention to Item 12 (territory) and Item 20 (outlet activity).
Dunkin’ is owned by Inspire Brands, the Roark Capital portfolio company that took it private in 2020 for $11.3 billion. About 9,500 Dunkin’ US units operate, almost all franchised. The 2026 FDD lists a $40,000 to $90,000 initial franchise fee depending on format, an estimated initial investment of $437,000 to $1.7 million, a 5.9% royalty, and a 5% advertising contribution. Average annual gross sales per traditional Dunkin’ shop ran approximately $1.1M in the most recent disclosure.
Taco Bell sits inside Yum! Brands, which also owns KFC and Pizza Hut. Approximately 7,000 US units operate, of which roughly 93% are franchised. The 2026 FDD shows an initial franchise fee of $25,000 to $45,000, an estimated initial investment of $580,000 to $3.4 million, a 5.5% royalty, and a 4.25% advertising contribution. Average unit volumes are among the strongest in QSR, running above $1.9M per restaurant.
Wendy’s operates approximately 6,000 US units, about 95% franchised. The 2026 FDD lists a $50,000 franchise fee, an initial investment of $2.0M to $3.9M for a freestanding restaurant, a 4% royalty, and a 4% national advertising contribution. Wendy’s prefers franchisees with $1M of liquid assets and $5M net worth, putting it firmly in the institutional-franchisee category alongside McDonald’s.
These five franchise examples illustrate the spread within a single category. The same word “franchise” covers a $230,000 sandwich shop and a $3.9 million flagship restaurant. The royalty range is 4% to 8%. The liquidity requirements vary by a factor of ten. The brand-equity premium is priced into the initial investment in every case.
Casual and Fast-Casual Restaurant Franchise Examples
The casual and fast-casual segment is where most net new restaurant franchise growth has come from over the last decade. The format sits between QSR and full-service: higher ticket, fresher ingredients, often counter-service or limited table service, and check averages of $12 to $18.
An important note up front: Chipotle does not franchise. Despite being one of the most recognized fast-casual brands in the country, Chipotle has operated a corporate-only model since founder Steve Ells launched the first restaurant in 1993. The same is true of In-N-Out Burger, Shake Shack (corporate plus international licensing), and Sweetgreen. If you see “Chipotle franchise” referenced online, it is wrong.
Wingstop is the high-growth chicken-wing leader. The 2026 FDD shows roughly 2,000 US units, an initial franchise fee of $20,000 per unit, an estimated initial investment of $315,000 to $948,000, a 6% royalty, and a 5% national advertising contribution. Item 19 shows average net sales per restaurant running above $1.8M, with restaurant-level EBITDA margins of approximately 21% for top-quartile operators. Wingstop is one of the franchise examples cited most often by private equity buyers looking at multi-unit operator portfolios, because the box economics and the brand pricing power have held through inflation cycles.
Five Guys is privately held by the Murrell family, who founded the chain in Arlington, Virginia in 1986. Approximately 1,500 US units operate. The 2026 FDD lists a $25,000 initial franchise fee, an estimated initial investment of $336,000 to $859,000, a 6% royalty, and a 2% national advertising contribution. Five Guys runs a more restrictive area development model than most peers, typically requiring franchisees to commit to 5 or more units over a defined development schedule.
Jersey Mike’s Subs was acquired by Blackstone in late 2024 in a deal valuing the company at approximately $8 billion. The chain has roughly 2,500 US units. The 2026 FDD shows a $18,500 initial franchise fee, an estimated initial investment of $194,000 to $1.4 million depending on format, a 6.5% royalty, and a 1% advertising contribution. Jersey Mike’s average unit volumes run approximately $1.4M, and the brand has continued to gain share against legacy sub competitors. The Blackstone acquisition is being closely watched as a template for what private equity ownership of an aspirational fast-casual brand looks like over a 5 to 7 year hold.
Jimmy John’s, owned by Inspire Brands since 2019, operates roughly 2,600 US units. The 2026 FDD shows a $35,000 franchise fee, an initial investment of $343,000 to $602,000, a 6% royalty, and a 4.5% advertising contribution. Jimmy John’s is one of the smaller-footprint franchise examples in the segment, which translates into faster builds and lower fixed-cost exposure.
Firehouse Subs, acquired by Restaurant Brands International in 2021 for $1 billion, operates approximately 1,300 US units. The 2026 FDD shows a $20,000 franchise fee, an initial investment of $193,000 to $1.0M, a 6% royalty, and a 4% advertising contribution. Firehouse is RBI’s smallest US franchise system after Tim Hortons US.
Coffee, Smoothie, and Beverage Franchise Examples
Beverage-led concepts are one of the fastest-growing franchise categories in 2026. The combination of drive-through formats, daily-repeat customer behavior, and lower food-cost percentages relative to QSR has attracted both new franchisees and institutional capital. The franchise examples below define the segment.
Scooter’s Coffee is the breakout drive-through coffee story of the last 5 years. Founded by Don and Linda Eckles in Bellevue, Nebraska in 1998, the chain now operates roughly 770 units, almost all franchised. The 2026 FDD shows a $40,000 initial franchise fee, an estimated initial investment of $760,000 to $1.6 million for a kiosk format, a 6% royalty, and a 2% national marketing fund contribution. Average unit volumes for mature kiosks have been reported above $1M.
Tim Hortons is owned by Restaurant Brands International, the same parent as Burger King and Popeyes. While Tim Hortons has over 4,800 units in Canada, its US franchise footprint remains modest, with a few hundred units concentrated in Ohio, Michigan, and New York. The 2026 US FDD shows a $50,000 franchise fee, an estimated initial investment of $516,000 to $2.3M, a 4.5% royalty, and a 4% advertising contribution. The US business has been a strategic question for RBI for over a decade.
Smoothie King operates roughly 1,000 US units. The 2026 FDD shows a $30,000 franchise fee, an estimated initial investment of $283,000 to $857,000, a 6% royalty, and a 3% national advertising contribution. Smoothie King positions itself as a wellness brand and has invested heavily in nutritionist-developed menu lines.
Kung Fu Tea is the largest bubble tea franchise in the United States, with approximately 250 units. The 2026 FDD lists a $30,000 franchise fee, an estimated initial investment of $215,000 to $477,000, a 6% royalty, and a 2% marketing contribution. Bubble tea as a category has grown roughly 8% per year in the US since 2020 per IBISWorld, and Kung Fu Tea has been the primary franchise vehicle for that growth.
Dutch Bros is publicly traded (NYSE: BROS) and has historically operated a corporate plus internal franchise model where franchisees were employees with operating tenure. The company has been transitioning toward more corporate ownership and is not a viable franchise example for outside operators today. Note the distinction: corporate growth concepts are not always available to external franchisees, even when they look like franchise systems from the outside.
Two notes on the beverage category. First, royalty rates cluster tightly around 6%, which is lower than the QSR average. Second, build-out costs for drive-through kiosks have moved up materially since 2022 due to construction inflation and land cost in suburban markets. A Scooter’s kiosk that cost $850K to build in 2020 now costs $1.2M to $1.5M, and that delta is the single biggest factor compressing first-year cash-on-cash returns for new beverage franchisees.
Home Services Franchise Examples
Home services is the franchise category that has attracted the most private equity capital over the last 5 years. The recurring nature of plumbing, HVAC, restoration, and cleaning revenue, combined with fragmented mom-and-pop competition, makes the category an institutional favorite. Neighborly, which is owned by KKR after a 2021 transaction, holds more than 30 home services franchise brands under one roof, including Mr. Rooter, Mr. Electric, Mr. Handyman, Aire Serv, Molly Maid, The Grounds Guys, and Glass Doctor.
Servpro is the largest restoration franchise in the United States, with approximately 2,200 units. Founded by Ted Isaacson in Sacramento in 1967, the brand was acquired by Blackstone in 2019. The 2026 FDD shows a $69,000 initial franchise fee, an estimated initial investment of $202,000 to $292,000 for a license territory, a 10% royalty (the highest in our home services cohort), and a 3% national advertising contribution. Servpro territories are sold on a population basis, with most territories covering 50,000 to 100,000 residents.
Mr. Rooter Plumbing, part of Neighborly, operates approximately 300 US units. The 2026 FDD shows a $42,500 franchise fee, an estimated initial investment of $90,000 to $192,000, and a 7% royalty with a tiered cap structure that drops to 4% on revenue above a defined threshold. The capped royalty model is one of the things that makes Neighborly brands attractive to growth-oriented operators.
Molly Maid, also Neighborly-owned, operates roughly 480 units. The 2026 FDD shows a $14,900 franchise fee, an estimated initial investment of $125,000 to $185,000, and a tiered royalty that begins at 6.5% and steps down with volume. Molly Maid is one of the lower-capital franchise examples on this list, which is part of why it is a common first franchise for service-business operators.
1-800-GOT-JUNK? operates roughly 250 US units under parent O2E Brands. The 2026 FDD lists a $50,000 franchise fee, an estimated initial investment of $213,000 to $313,000, and an 8% royalty. The brand is a useful franchise example because the unit-of-revenue model (per-job pricing with route density economics) differs structurally from the recurring-contract models of cleaning and pest control.
College Hunks Hauling Junk and Moving operates approximately 225 US units. The 2026 FDD shows a $50,000 franchise fee, an estimated initial investment of $99,000 to $244,000 (truck-only), and a 7% royalty. College Hunks was acquired by Boston-based private equity firm Princeton Equity Group in 2022.
Automotive Service Franchise Examples
The automotive service franchise category is consolidating quickly. The two largest umbrella owners are Driven Brands (NASDAQ: DRVN), which owns Take 5 Oil Change, Meineke, Maaco, 1-800-Radiator, and CARSTAR, and TBC Corporation, owned by Sumitomo, which holds Midas, Big O Tires, and NTB.
Jiffy Lube is owned by Shell Oil through its acquisition of Pennzoil-Quaker State in 2002, then folded under Shell Lubricants. The brand operates approximately 2,100 US units, almost all franchised. The 2026 FDD shows a $35,000 initial franchise fee, an estimated initial investment of $214,000 to $444,000 for a 3-bay service center, and a 5% royalty with a separate 6% supply chain contribution that effectively reaches Jiffy Lube’s parent through Pennzoil product purchase requirements.
Midas operates roughly 1,150 US units under TBC Corporation. The 2026 FDD shows a $30,000 franchise fee, an estimated initial investment of $356,000 to $575,000 for a standard 6-bay store, and a 10% royalty that includes the national advertising contribution. Midas is one of the older franchise examples on this list, having begun franchising in 1956.
Take 5 Oil Change, Driven Brands’ growth vehicle in the quick-lube category, operates approximately 1,000 US units and has been the fastest-opening franchise concept in automotive over the last 5 years. The 2026 FDD shows a $35,000 franchise fee, an estimated initial investment of $1.4M to $2.4M for a freestanding 3-bay store (real estate not included), and a 7% royalty with a 1.5% brand contribution. Take 5 is a useful franchise example because the build-out cost is significantly higher than Jiffy Lube, reflecting the modern drive-through purpose-built format.
Big O Tires operates approximately 500 US units, also under TBC. The 2026 FDD shows a $30,000 franchise fee, an estimated initial investment of $268,000 to $1.4M, and a 5% royalty. Tire-focused franchise examples like Big O carry higher working-capital needs than oil-only concepts because of tire inventory carry.
Meineke Car Care Centers, also Driven Brands, operates roughly 700 US units. The 2026 FDD shows a $30,000 franchise fee, an initial investment of $232,000 to $522,000, and a 7% royalty with a 1.5% brand contribution.
Fitness and Wellness Franchise Examples
Fitness is the franchise category that has bifurcated most dramatically since the pandemic. Big-box gyms (Planet Fitness, Crunch) consolidated and gained share. Studio-format concepts (Orangetheory, F45, CycleBar) struggled with member churn and corporate restructurings. The franchise examples below capture both ends of the market.
Planet Fitness (NYSE: PLNT) operates roughly 2,500 US units, of which approximately 90% are franchised. The 2026 FDD shows a $20,000 franchise fee, an estimated initial investment of $1.5 million to $5.1 million for a standard 20,000 square foot box, and a 7% royalty with a 2% national advertising contribution. Planet Fitness requires franchisees to demonstrate at least $3M of net worth and $1.5M of liquid assets per development area, and the brand is sold primarily through area development agreements requiring multi-unit commitments. Average unit volumes run approximately $2.2M.
Anytime Fitness, the largest brand in parent Self Esteem Brands’ portfolio (which also includes Waxing the City and Basecamp Fitness), operates approximately 2,500 US units. The 2026 FDD shows a $42,500 franchise fee, an estimated initial investment of $381,000 to $793,000 for a standard 4,500 square foot 24/7 club, and a flat $799 per month royalty (one of the very few flat-fee royalty structures among major franchise examples). The flat-fee structure rewards high-revenue operators with declining royalty-to-revenue ratios.
Orangetheory Fitness is owned by Roark Capital, which acquired the brand in 2024. Approximately 1,300 US units operate, almost all franchised. The 2026 FDD shows a $59,950 franchise fee, an estimated initial investment of $608,000 to $1.5 million for a standard studio, an 8% royalty, and a 2% national branding fund contribution. Average unit volumes run approximately $700,000 per studio.
F45 Training (NYSE: FXLV) operates roughly 1,000 US units after a multi-year restructuring under new CEO Tom Dowd. The 2026 FDD shows a $50,000 franchise fee, an estimated initial investment of $321,000 to $475,000, and a flat monthly royalty model similar to Anytime Fitness. F45 is a useful franchise example because it shows what happens when a franchisor expands too fast: the brand opened more than 1,500 units globally by 2021, then went through a wave of underperforming-unit closures.
Crunch Fitness operates approximately 450 US franchised units in addition to corporate locations. The 2026 FDD shows a $25,000 franchise fee, an estimated initial investment of $400,000 to $2.7 million depending on format (Crunch Signature, Crunch Select, or Crunch Fitness), and a 5% royalty with a 2% marketing contribution.
Senior Care and Healthcare Franchise Examples
Senior care franchise examples are increasingly important as the over-65 population grows. The category includes non-medical home care, skilled home health, and assisted living placement. Most senior care franchises are office-based brokerage models with field caregivers, which keeps initial investment lower than retail formats.
Home Instead is the largest non-medical senior care franchise in the world, with approximately 1,250 US units. The brand was acquired by Honor Technology in 2021 in a deal that valued the combined company above $2.4 billion. The 2026 FDD shows a $59,500 franchise fee, an estimated initial investment of $130,000 to $190,000 for a territory office, and a 5% royalty that scales down with volume. Home Instead franchisees typically build revenue to $2M to $5M over 5 years, putting royalty-load economics in a favorable place for established operators.
Comfort Keepers is owned by Sodexo, the French food services and facilities management group. The brand operates approximately 650 US units. The 2026 FDD shows a $50,000 franchise fee, an estimated initial investment of $95,000 to $169,000, and a 5% royalty. Comfort Keepers is a useful franchise example because the parent is a public European multinational whose strategic priorities for the brand are not always franchisee-aligned.
BrightStar Care operates approximately 390 US units. The 2026 FDD shows a $50,000 franchise fee, an estimated initial investment of $113,000 to $214,000, and a 6% royalty with a 2% national advertising contribution. BrightStar is distinct among senior care franchise examples because it offers both medical (skilled nursing) and non-medical home care, requiring the franchisee to operate a state-licensed home health agency.
Visiting Angels operates roughly 700 US units under parent Living Assistance Services. The 2026 FDD shows a $54,950 franchise fee, an estimated initial investment of $130,000 to $190,000, and a 3.5% to 2% sliding royalty that is among the lowest in the franchise universe.
Right at Home operates approximately 600 US units. The 2026 FDD shows a $59,500 franchise fee, an estimated initial investment of $89,000 to $158,000, and a 5% royalty with a 2% national branding fund contribution.
Education, Tutoring, and Childcare Franchise Examples
Education and childcare franchise examples span an enormous spectrum from $74,000 tutoring centers to $5.3 million purpose-built preschools. The defining feature of the category is regulatory complexity: childcare franchises must comply with state licensing, child-staff ratios, and (in some states) Quality Rating and Improvement System participation.
Kumon is the largest after-school tutoring franchise in the world, with approximately 1,500 US units (and over 25,000 globally). Founded by Toru Kumon in Japan in 1958, the brand operates a learning-center model focused on math and reading. The 2026 FDD shows a $2,000 franchise fee, an estimated initial investment of $74,000 to $157,000, and a unique royalty structure of $36 to $43 per subject per student per month. Effective royalty as a percent of revenue typically runs 30% to 40%, the highest of any major franchise example in this guide. The Kumon model is structured this way because the franchisor provides the curriculum, materials, and brand, while the franchisee acts more like a licensed operator of a method than a typical retail franchisee.
Mathnasium, owned by Roark Capital since 2021, operates roughly 1,100 US units. The 2026 FDD shows a $49,000 franchise fee, an estimated initial investment of $113,000 to $153,000 for a standard learning center, a 10% royalty, and a 2% national branding fund contribution. Mathnasium’s effective royalty rate is much lower than Kumon’s despite the headline 10% figure, because the underlying revenue model is monthly subscription rather than per-subject per-student.
Sylvan Learning operates approximately 500 US units after corporate restructurings reduced the footprint from a 2010 peak. The 2026 FDD shows a $24,000 franchise fee, an estimated initial investment of $85,000 to $179,000, and an 8% to 9% royalty.
Goddard School operates approximately 570 US units. The 2026 FDD shows a $135,000 franchise fee (one of the highest of any franchise example in this guide), an estimated initial investment of $750,000 to $910,000 for the school operating fit-out (real estate excluded), and a 7% royalty. Goddard typically requires franchisees to secure real estate via build-to-suit arrangements with developer partners.
Primrose Schools operates approximately 470 US units. The 2026 FDD shows a $80,000 franchise fee, an estimated initial investment of $640,000 to $5.3 million depending on whether the franchisee includes real estate, and a 7% royalty with a 2% national marketing contribution. Primrose is one of the few franchise examples where the franchisor often provides real estate development assistance through its in-house construction services group.
Retail and Convenience Franchise Examples
Retail and convenience franchise examples include the largest single franchise system in the United States, the most unusual royalty structure in the country, and several brands that are technically cooperatives rather than franchises.
7-Eleven is the largest single franchise brand in the United States by unit count, with approximately 9,500 US franchise units and another 3,000 corporate locations. Owned by Japanese parent Seven and i Holdings, the chain uses a unique royalty model called the “7-Eleven Charge” rather than a percentage of sales. The franchisor and franchisee split gross profit (sales minus cost of goods sold) on a roughly 50/50 basis after operating expenses, with the franchisor handling utilities, rent, and equipment. The 2026 FDD shows an initial franchise fee that varies by store from $25,000 to over $1 million depending on existing store cash flow, an estimated initial investment of $54,000 to $1.6 million (driven primarily by inventory financing), and effective royalty rates that run 50% to 55% of gross profit. The 7-Eleven model is the most unusual franchise example in this guide and worth studying for anyone interested in alternative franchise structures.
Ace Hardware is technically a member-owned cooperative, not a franchise under FTC rules. Members purchase Ace stock, pay no royalty, and share in cooperative patronage dividends. We include it here because it is frequently miscategorized as a franchise. New member stores typically require $250,000 to $1 million of initial capital and $400,000 of opening inventory.
GNC operates approximately 900 US franchise units (in addition to corporate locations) after going through Chapter 11 reorganization in 2020 and emerging under owner Harbin Pharmaceutical. The 2026 FDD shows a $40,000 franchise fee, an estimated initial investment of $138,000 to $222,000 for a standalone store, and a 6% royalty with a 3% national marketing contribution.
The UPS Store operates roughly 5,400 US units under parent UPS. The 2026 FDD shows a $29,950 franchise fee, an estimated initial investment of $245,000 to $508,000, and a 5% royalty with a 2.5% advertising contribution.
Snap-on Tools, the mobile tool franchise system, operates approximately 3,500 US franchise routes. The 2026 FDD shows a $5,000 to $15,000 franchise fee, an estimated initial investment of $189,000 to $467,000 (most of which is rolling inventory in the franchise truck), and a flat monthly royalty of $109. Snap-on is included here because the truck-based franchise model is structurally different from store-based retail and produces materially different unit economics.
Cleaning and Janitorial Franchise Examples
Commercial cleaning and janitorial franchise examples often follow a master-franchisor model where the franchisor signs commercial contracts and assigns work to local franchisees who effectively buy a book of business along with the franchise. The model is unusual and merits scrutiny.
JAN-PRO operates more than 10,000 US franchise units (the largest unit count of any cleaning franchise) under parent Premium Service Brands, itself a portfolio of multiple service franchise systems. The 2026 FDD shows a unit franchise fee that ranges from $3,150 to $52,000 depending on the customer base assigned, and a royalty structure that combines a 10% franchise royalty with a 5% management fee. JAN-PRO franchisees do not source customers themselves; the master franchisor provides the contracted accounts.
Vanguard Cleaning Systems operates more than 3,000 US units. The 2026 FDD shows a franchise fee ranging from $7,500 to $40,000 based on the customer base assigned, and a 5% royalty plus a 3% management fee.
Stratus Building Solutions operates approximately 3,000 US units. The 2026 FDD shows a franchise fee ranging from $4,450 to $69,000 based on the size of the customer base provided, and a royalty of 5% plus a 5% management fee.
Coverall, which markets as Coverall Health-Based Cleaning System, operates approximately 8,000 US units under parent JAN-PRO Holdings (the same parent group as JAN-PRO itself). The 2026 FDD shows similar pricing and structure to JAN-PRO.
Servpro deserves a second mention here because while it is typically categorized as restoration (home services), the majority of its revenue comes from commercial mitigation and cleaning. The same FDD numbers cited in the home services section apply: $202,000 to $292,000 initial investment, 10% royalty.
The master-franchisor model used by JAN-PRO, Vanguard, Stratus, and Coverall has been the subject of regulatory attention in California and other states, where some former franchisees have argued the model functions more like an employment relationship than a true franchise. Anyone evaluating these franchise examples should read Item 19 carefully and speak with multiple existing franchisees about the realized economics of the assigned accounts.
Hotel and Lodging Franchise Examples
Hotel franchise examples sit at the top of the capital-intensity spectrum. The “franchisee” of a Hampton by Hilton is typically a real estate developer or hotel ownership group financing the project with a combination of CMBS debt, SBA 504 loans, and equity from a hotel-focused private equity sponsor or family office. The franchise fee is comparatively small relative to the real estate.
Marriott International (NASDAQ: MAR) franchises 30 brands across the price spectrum. The flagship Marriott Hotels brand operates approximately 5,000 US franchise units globally. The 2026 FDD for a full-service Marriott shows a $90,000 to $120,000 application fee plus $500 per room, an estimated total project cost of $77M to $120M for a new-build full-service property, a 6% royalty, and a 1% to 2% marketing fund contribution. Marriott also charges program fees for the Marriott Bonvoy loyalty program that typically run another 5% to 8% of room revenue.
Hilton (NYSE: HLT) franchises more than 20 brands. The flagship Hilton Hotels and Resorts brand operates approximately 5,000+ US franchise units across the full Hilton portfolio. The 2026 FDD shows similar structure to Marriott: high application fees, 5% royalty, and program fees for the Hilton Honors loyalty system.
Hampton by Hilton is the largest single hotel franchise brand in the United States by unit count, with approximately 2,500 US franchise units. The 2026 FDD shows a $75,000 application fee plus $500 per room, an estimated initial investment of $11M to $20M for a typical 100-room new-build, and a 6% royalty with a 4% program fee. Hampton has been the workhorse of the limited-service segment for over 30 years.
Holiday Inn Express, owned by InterContinental Hotels Group (IHG), operates approximately 2,500 US franchise units. The 2026 FDD shows a $50,000 minimum application fee, an estimated initial investment of $9M to $16M for a typical new-build, a 6% royalty, and a 3% marketing contribution plus an IHG Rewards program fee.
Best Western is technically a member association rather than a traditional franchisor. Members pay annual dues based on room count rather than a percentage royalty. We include it here because it is frequently cataloged alongside franchise examples and the operating relationship looks similar to franchisees of a traditional brand.
A note on hotel franchise economics: the IRR a hotel franchisee earns is largely a real estate return, not a franchise return. The franchise relationship contributes brand, distribution (reservations and loyalty), and operating standards. The check the franchisee writes is overwhelmingly for land, construction, and FF&E. This is structurally different from every other category in this guide and is why hotel franchise examples should be evaluated through a real estate lens.
Comparing Franchise Examples: How to Read the FDD
By now you have seen FDD references cited under more than 60 different brands. The point of organizing the franchise examples this way is to make the FDD itself usable as a comparison tool. Below is the workflow institutional buyers and experienced franchisees use when evaluating a new opportunity.
Step 1: Read Item 20 first. Item 20 shows outlet activity for the last three fiscal years: openings, closures, transfers, terminations, ceased operations, and reacquired-by-franchisor units. The single best leading indicator of franchisor health is the relationship between openings and closures. A brand that opens 100 units a year while closing 80 is not growing the way the corporate marketing deck implies. Item 20 also shows the franchisor’s projected openings for the next year, which you should treat as a starting point, not a fact.
Step 2: Read Item 19, but read it carefully. Item 19 is the Financial Performance Representation. Franchisors are not required to provide one, but roughly 70% do per FRANdata’s 2026 disclosure data. When an Item 19 is present, look for: how many units are included in the sample, whether the sample is the full system or a subset (and if a subset, why), how long the units have been open, and whether the data is averaged or shown as quartiles. An average AUV of $1.4M means nothing if 40% of units are below $900K.
Step 3: Calculate the all-in royalty load. Add Item 6 royalty plus brand fund plus technology fee plus any per-transaction fees. For Subway that is 8% plus 4.5%, for a total of 12.5% before any local advertising. For Anytime Fitness that is a flat $799 per month plus 2% brand fund. The headline royalty rate is rarely the actual cost.
Step 4: Compare Item 7 to your real opening cost. Item 7 is the franchisor’s estimated initial investment. Construction inflation has run ahead of FDD update cycles in many categories, so the high end of the Item 7 range is often closer to the realistic 2026 build cost than the mid-point. Always add a 15% contingency.
Step 5: Call 10 existing franchisees. Item 20 includes the contact information for current and former franchisees. The franchise sales team will steer you to the best operators. Call the franchisees who left the system. Call the franchisees in your geography. Ask about EBITDA, ramp time, and the quality of franchisor support during downturns.
This is the same workflow used by private equity buyers evaluating multi-unit franchisee acquisitions and by family office investors funding emerging brands. The franchise examples in the sections above give you a head start because the headline numbers are already pulled. The qualitative work (Item 20 patterns, Item 19 quartiles, franchisee references) is what separates a good franchise investment from a bad one.
How CT Acquisitions Helps Franchisees Buy, Sell, and Resell
CT Acquisitions advises lower-middle-market business owners on M&A transactions, including franchisees who have built multi-unit portfolios and are ready to sell, franchisees buying out existing operators, and operating companies acquiring single-unit and multi-unit franchise resales as part of platform-building strategies.
The franchise examples in this guide span the full spectrum of capital intensity, and so do the M&A dynamics. A 12-unit Anytime Fitness operator selling to a regional consolidator runs a different process than a single-unit Servpro owner selling to a strategic acquirer, which runs a different process than a 50-unit Hampton portfolio selling to a hotel REIT. CT Acquisitions has run sell-side and buy-side engagements across all three structures.
Common situations where we work with franchisees include: multi-unit operators ready to retire and seeking liquidity for a portfolio built over 15 to 25 years, second-generation family members evaluating whether to continue operating or sell, operators expanding through resale acquisitions of existing units in adjacent territories, and franchisors themselves seeking advisory on refranchising or buyback programs.
If you are evaluating one of the franchise examples in this guide as an investment, considering a sale of an existing franchise portfolio, or planning to buy out a co-owner, the team at CT Acquisitions can help you structure the transaction and source the right counterparty. Visit our sell-your-business page for sellers, or browse the related guides linked throughout this article for category-specific deep dives, including our coverage of handyman business franchise opportunities, auto service franchise opportunities, home services franchise opportunities, and senior care franchise opportunities. For a primer on the underlying transaction mechanics, see our business acquisition meaning explained guide.
Franchise Examples: Frequently Asked Questions
What is the most famous franchise example in the United States?
The most famous franchise example in the United States is McDonald’s, founded by Ray Kroc in 1955 after he franchised the original San Bernardino restaurant from the McDonald brothers. McDonald’s operates approximately 13,500 US restaurants, of which about 95% are franchised, with an initial investment range of $1.4M to $2.5M per unit and a 4% royalty plus 4% advertising contribution. The brand is the reference template for the modern QSR franchise system.
How many franchise units are there in the United States in 2026?
Per the International Franchise Association’s 2026 Franchise Business Economic Outlook, there are approximately 821,000 franchise establishments operating in the United States, generating an estimated $920 billion in economic output and employing roughly 8.9 million people. The 10 largest industry categories (QSR, casual restaurants, beverages, home services, automotive, fitness, senior care, education, retail and convenience, and hotels) account for over 80% of total franchise units.
What franchise examples have the lowest initial investment?
Among the franchise examples in this guide, the lowest initial investments are in home services, cleaning, and senior care. Kumon ($74,000 to $157,000), JAN-PRO ($3,150 to $52,000 for a small assigned account), Molly Maid ($125,000 to $185,000), and Right at Home ($89,000 to $158,000) are at the lower end. The trade-off for low capital intensity is typically a higher percentage of revenue going to royalty and management fees, plus more reliance on owner-operator labor.
Which franchise examples are owned by private equity in 2026?
Several of the largest franchise examples in this guide are owned by private equity sponsors. Roark Capital owns Subway, Inspire Brands (which itself owns Dunkin’, Arby’s, Buffalo Wild Wings, Sonic, Jimmy John’s, and Baskin-Robbins), Orangetheory Fitness, Mathnasium, and Jersey Mike’s (through 2024 acquisition by Blackstone with Roark portfolio overlap). KKR owns Neighborly, the platform behind Mr. Rooter, Molly Maid, Mr. Electric, Mr. Handyman, Aire Serv, and 25+ other service brands. Blackstone owns Servpro and Jersey Mike’s. Sodexo owns Comfort Keepers. Honor Technology owns Home Instead.
Are Chipotle, In-N-Out, and Shake Shack franchise examples?
No, these three brands are not franchise examples in the United States. Chipotle has operated a corporate-only model since founder Steve Ells launched the first restaurant in 1993 and has never franchised. In-N-Out Burger has been family-owned and corporate-only since 1948. Shake Shack operates corporate locations in the United States and uses international licensing partners in selected overseas markets. If you see “Chipotle franchise” or “In-N-Out franchise” online, the information is wrong.
What is the difference between a franchise and a cooperative?
A franchise, as defined by the FTC Franchise Rule, is a relationship where the franchisor grants the franchisee the right to operate under a trademark, exerts significant control or provides significant assistance, and receives at least $615 within the first six months of operation. A cooperative is a member-owned business where members purchase equity stock, share in patronage dividends rather than pay royalty, and collectively control the cooperative through a board. Ace Hardware and Best Western are commonly miscategorized as franchise examples but are member-owned cooperatives and member associations respectively. The economic relationship looks similar from the outside (shared brand, shared supply chain, operating standards) but the legal and equity structure is fundamentally different.