Business Strategies
Apr 1, 2025
Explore the top five franchise industries set to thrive in 2025, highlighting key trends and investment opportunities for potential franchisees.
Looking to invest in a profitable franchise in 2025? Here’s a quick summary of the top-performing sectors and why they’re thriving:
Food and Beverage Franchises
Focus on health-conscious dining, AI-driven efficiency, and eco-friendly practices.
Expanded revenue streams like ghost kitchens and meal subscriptions.
Health and Wellness Businesses
$7 trillion global market, driven by fitness tech, personalized services, and holistic wellness.
Popular franchises include Orangetheory Fitness and SPENGA.
Home Service Companies
Growing demand for cleaning, lawn care, and handyman services.
Weather-driven needs and eco-friendly options are key trends.
Business Support Services
$95.3 billion output, fueled by coworking spaces, virtual staffing, and IT support.
Hybrid work models and small business needs drive growth.
Digital and Tech Services
$1.63 trillion market by 2027, with focus on cybersecurity, IT services, and cloud computing.
High ROI potential with annual growth at 11%.
Quick Comparison
Industry | Key Trends | Market Size/Projections | Example Opportunities |
---|---|---|---|
Food and Beverage | Health-focused, tech integration | $893.9 billion output | Ghost kitchens, meal subscriptions |
Health and Wellness | Fitness tech, personalized services | $7 trillion global revenue by 2025 | Orangetheory, SPENGA |
Home Services | Eco-friendly, weather-driven demand | $657 billion U.S. market | Cleaning, handyman services |
Business Support Services | Flexible workspaces, IT solutions | $95.3 billion U.S. output | Coworking, virtual staffing |
Digital and Tech Services | Cybersecurity, IT services | $1.63 trillion market by 2027 |
These industries are leveraging technology, consumer trends, and operational efficiency to deliver strong returns. Dive into the article for a deeper look at what makes these sectors so profitable.
Top 5 Franchises To Own In 2025 - I Already Own 3
1. Food and Beverage Franchises
Food and beverage franchises continue to lead the way in 2025, with 821,000 units generating $893.9 billion in output. Several trends are driving this growth, reshaping how franchises operate and connect with customers.
Health-Focused Dining
Franchises are responding to the demand for healthier eating by prioritizing fresh, locally sourced ingredients and offering clear nutritional details. This approach builds customer trust and sets them apart in a competitive market.
Technology at the Core
Modern food franchises are using advanced tech to improve efficiency. AI-driven ordering systems, digital drive-thrus, mobile apps, and self-service kiosks are helping streamline operations, minimize mistakes, and cut labor costs.
Expanding Revenue Streams
Brands are going beyond traditional dine-in services. Ghost kitchens, catering options, and meal subscriptions are becoming popular ways to lower costs and tap into new income sources.
Eco-Friendly Practices
Sustainability is a growing priority. Franchises are adopting compostable packaging, reducing food waste, using energy-efficient equipment, and forming local sourcing partnerships to appeal to environmentally conscious customers.
Efficient Workforce Management
Top franchises are improving profitability by optimizing how they manage staff. Digital tools for scheduling and training are helping reduce turnover while ensuring consistent, high-quality service.
In 2025, successful food and beverage franchises blend health-conscious menus, cutting-edge technology, diversified income strategies, eco-friendly initiatives, and streamlined operations to deliver efficient yet personalized service.
2. Health and Wellness Businesses
The health and wellness industry is thriving, with global revenues projected to reach $7 trillion by 2025. This sector's rapid growth is fueled by consumer demand and demographic shifts, as seen in the examples and trends below.
Revenues have risen from $5.6 trillion in 2023 to an estimated $8.5 trillion by 2027. With 42% of consumers focusing on wellness and an aging U.S. population (25% will be over 65 by 2060), the market is expanding quickly. Leading brands are leveraging these trends to make a strong impact:
Franchise | Initial Investment | Locations | Key Features |
---|---|---|---|
Orangetheory Fitness | $613,129 – $1,644,519 | 1,281 | Focus on high-intensity interval training |
SPENGA | $287,077 – $861,122 | 300 | Combines spin, strength, and yoga |
$784,950 – $2,073,050 | 179 | Offers 24/7 gym access |
Franchises in this space are tapping into several key trends:
Tech Integration: Fitness apps, virtual workouts, and telehealth services are helping businesses reach more customers.
Personalized Services: Wearable devices and health apps are enabling tailored wellness programs.
"The biggest trend I've seen in this industry is how people define wellness. It's a much more diverse and holistic view that's emerged over the last five to seven years. It includes things like better sleep, mindfulness, meditation, flexibility and all of those things. It's not just about not being sick and having a lot of muscles." - Scott Wendrych, chief development officer for FYZICAL Therapy and Balance Centers
Many gym franchises are now offering a range of services under one roof, such as nutritional coaching, personal training, group fitness classes, mindfulness sessions, and massage therapy. This variety not only meets different customer needs but also creates more stable revenue streams.
With its rapid growth, changing consumer preferences, and advancements in technology, the health and wellness industry is shaping up to be a promising franchise opportunity in 2025.
3. Home Service Companies
The home service industry is on a strong growth trajectory, with the U.S. market projected to hit around $657 billion. This growth stems from factors like more severe weather, aging homes, and evolving consumer demands.
Here’s a snapshot of the sector's performance:
Service Category | Market Size/Growth | Key Insight |
---|---|---|
Residential Cleaning | 20% Year-over-Year growth | 80% of households expected to use these services by 2024 |
Commercial Cleaning | $468 billion by 2027 | 51.67% growth from 2020 levels |
Lawn Care | 5.1% annual growth | Growth projected through 2027 |
Handyman Services | 80% annual usage | Most U.S. households need these services yearly |
Franchise expansion opportunities look promising for 2025. With over 35% of U.S. households renting, the demand for property maintenance services remains steady.
The industry is also seeing several key trends:
Cross-Service Expansion: Franchises are branching into complementary services. For example, Benjamin Franklin Plumbing works with DRYmedic Restoration Services, while America's Swimming Pool Company collaborates with Mosquito Squad.
Weather-Driven Demand: Continuous climate events, including 18 billion-dollar disasters in 2022, fuel the need for restoration and maintenance.
"As the economic sentiment improves and consumers continue to seek out ways to enhance their spaces – whether by choice or necessity – the home service industry is poised to build upon the momentum it's achieved over the past few years." – Mark Dawson, Executive Vice President of Service Trade Brands at Authority Brands
Market Stability: High interest rates encourage property maintenance, while low rates lead to more renovations.
Remote Work Influence: The rise of remote work drives demand for home office upgrades and better internet connectivity.
Eco-Friendly Focus: More consumers are choosing environmentally responsible options, pushing franchises to adopt green practices.
Strong brand awareness, thorough training programs, and reliable support systems make home service franchises an appealing investment for 2025.
4. Business Support Services
Franchises in the U.S. business support services sector contribute an estimated $95.3 billion in economic output annually.
Here’s a snapshot of the industry's key metrics:
Service Category | Market Size/Growth | Key Trend |
---|---|---|
Overall Industry | $950 billion annual sales | 4.7% projected economic output growth |
Coworking Spaces | 5 million users by 2024 | 158% growth compared to 2020 levels |
Virtual Staffing | 78% cost savings | 80% of small businesses plan to hire |
Several trends are driving this growth:
Technology Integration
IT service providers are essential in supporting remote work operations.
Flexible Workspaces
Hybrid work models have increased the demand for coworking and flexible office spaces.
Virtual Business Solutions
Remote work has reshaped traditional business services. Virtual assistants, for instance, can reduce operating costs by up to 78%.
Specialized Services
Services like mailing, packing, shipping, recruitment, advertising, and accounting are seeing steady growth.
The sector remains steady, with 99,296 business services franchise locations across the U.S.. Projections indicate a 1.4% rise in franchise units and a 3% increase in employment. With strong operational systems and tech integration, business support franchises are poised to be a solid investment opportunity in 2025.
5. Digital and Tech Services
The digital and tech services franchise sector is seeing impressive growth, fueled by advancements in IT and increasing demand for specialized services.
This sector is growing at an annual rate of 11%, with the market expected to surpass $1.63 trillion by 2027. Key drivers include rising demand for managed IT services, cybersecurity, and cloud computing. Employment in this field is also on the rise, with nearly 9 million workers projected in 2024 - an increase of 221,000 jobs compared to the previous year. Well-known brands like Geek Squad and TeamLogic IT dominate over 30% of the tech services market.
Franchises in this space often generate over $1 million annually, with profit margins ranging from 15% to 30% and an average return on investment of about 20% within three years. Their diversified revenue streams across various IT services provide resilience during economic ups and downs.
"The data shows franchising continues exceeding economic expectations", says Darrell Johnson, CEO of FRANdata.
Initial franchise fees typically range between $10,000 and $50,000, but setting up a full IT business network can require a total investment exceeding $200,000. These costs often cover training, certifications, technology infrastructure, marketing support, territory rights, and ongoing operational assistance.
Emerging trends in this sector include cybersecurity solutions, tools for remote work, and initiatives aimed at extending electronics' lifespans to reduce e-waste. With 32.5 million small businesses in the U.S. relying on IT services, tech franchises - offering structured training and operational systems - are shaping up to be a strong investment option for 2025 and beyond.
Conclusion
By 2025, franchise industries are expected to experience strong growth, driven by advancements in technology, eco-friendly practices, and flexible business operations. These shifts are powered by digital tools that continue to reshape how businesses operate.
For those considering franchise ownership, it's essential to dive deeper into these trends. Attending events like The Great American Franchising Expo offers a chance to connect with established franchisors and gather practical knowledge. Speaking with current franchisees can also provide a clear picture of daily operations and potential hurdles.
Before committing to a franchise, take these steps:
Create a detailed business plan that outlines startup costs, ongoing expenses, and expected profits.
Carefully review the Franchise Disclosure Document (FDD) with a qualified attorney who specializes in franchising.
Assess the market potential and territory rights in your chosen area.
Seek advice from experienced franchise consultants for tailored support and insights.
Franchise growth is closely linked to broader economic priorities, including community involvement, eco-conscious practices, and social responsibility. Aligning your approach with these priorities can help position your franchise for lasting success.
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