By the numbers
Franchise statistics for first-time buyers
Last updated: October 2026
Franchising is a large, varied sector where costs range from about $10,000 to several million dollars.
Franchise Fit Guide collected the published figures below because they shape how a first-time owner should choose: the field is huge, investment spreads are wide, and fees recur for the life of the agreement. Each figure links to the page it comes from, so you can check the context, date, and conditions yourself.
How big is the franchise industry, and what does it cost to join?
Schooley Mitchell cites roughly 845,000 US franchise units and economic output passing $921 billion. Entry costs span from about $10,000 to over $4 million depending on the brand. With so much range, these numbers are the strongest argument for choosing by fit, using a clear self-assessment, instead of by brand recognition.
Published franchise figures, with sources
| Figure | What it measures | Source |
|---|---|---|
| ~845,000 units | US franchise establishments, with employment approaching 8.9 million and economic output passing $921 billion. | Schooley Mitchell |
| $10,000 to $1 million+ | There are franchises that cost $10,000 and franchises that cost a million dollars. | Vetrepreneur |
| $233,000 vs $4.67 million | A Subway franchise can start at $233,000 while a Burger King requires up to $4.67 million. | GrowthFactor |
| 2.7% decline | The average initial investment across the industry declined 2.7 percent in 2025, masking wide variation. | GrowthFactor |
| $10,000 to $100,000+ | Initial franchise fees, depending on the brand’s recognition and support. | Franchise Expo USA |
| 4 to 8% | Common royalty range as a percentage of gross sales, sometimes plus a national marketing fund contribution. | Franchise Expo USA |
| 10 business days | Minimum time the FTC requires franchisors to provide the FDD before a contract is signed or money changes hands. | Vetrepreneur |
| 25% at $150,000+ | Brands on the 2026 Most Profitable Franchises list have at least 25 percent of surveyed owners reporting annual income of $150,000 or more. | Franchise Business Review |
| $351 per lead | Average cost per franchise lead in 2025, up from $271 in 2024, per Franchise Update Media’s AFDR. | Franchise Insights |
What do these numbers mean for choosing a franchise?
Three takeaways. First, the size of the market means you need criteria before you need brands. Second, the cost spread means your investment band filters out most options immediately; see franchise investment ranges. Third, recurring royalties mean a franchise is a long-term financial relationship, so the questions you ask franchisors matter.
Income figures such as Franchise Business Review's describe surveyed owners at specific brands, not a promise for any buyer. Return to how to choose the right franchise for the full process.
Common questions
- How much does a franchise cost?
- Costs range widely. Vetrepreneur notes there are franchises that cost $10,000 and franchises that cost a million dollars, and GrowthFactor reports a Subway can start at $233,000 while a Burger King can require up to $4.67 million. Item 7 of each brand’s Franchise Disclosure Document lists its estimated initial investment range. More in the FAQ
- How much is a typical franchise fee?
- Franchise Expo USA reports initial franchise fees range from $10,000 to over $100,000 depending on the brand’s recognition and support. The fee is only one part of the total investment, which also covers equipment, build-out, inventory, and working capital. Item 5 of the Franchise Disclosure Document shows the initial fee for a specific brand. More in the FAQ
- What are franchise royalties?
- Royalties are ongoing payments to the franchisor, usually a percentage of gross sales. Franchise Expo USA reports 4 to 8 percent is common, and L’Express Franchise found roughly 4 to 10 percent among the profitable brands it reviewed. Many systems also charge a marketing fund contribution. Item 6 of the FDD lists every recurring fee. More in the FAQ
- Do franchises actually make money?
- Many do, but results vary widely by brand, location, and owner, and no franchise guarantees income. Franchise Business Review’s 2026 Most Profitable Franchises list features brands where at least 25 percent of surveyed owners report annual income of $150,000 or more. Check Item 19 of the FDD for any financial performance figures and ask current owners. More in the FAQ
- How much does an average franchise owner make?
- There is no reliable single average, because income depends on the brand, territory, hours, and how long the business has operated. Franchise Business Review’s 2026 list highlights brands where 25 percent of owners report $150,000 or more per year. For a specific brand, read Item 19 of its FDD and ask several current franchisees. More in the FAQ
- What is the most profitable franchise to own?
- The most profitable franchise is the one you can run well in your market at an investment you can afford. Published rankings differ in method: Franchise Business Review uses owner surveys, while L’Express Franchise ranks brands by disclosed earnings. Treat any list as a starting point, then verify with Item 19 and franchisee conversations. More in the FAQ
Numbers are a start. Fit is the decision.
A FranNet consultant can help you turn these ranges into a shortlist that fits your goals and budget, free of charge.