Our Methodology
The goal of any franchise owner is to run a profitable business. The franchise model is advantageous for entrepreneurs because it offers a proven business model that can be opened in new markets with reasonable expectations of financial performance. While the performance of existing franchise units is not a guarantee that a new unit will perform as well, it is safe to use average unit revenues to compare different franchise opportunities.
Taking expected unit revenue in context with a thoughtful business plan to include expected operating costs and expenses can give entrepreneurs a methodology to compare potential profitability and return on investment of a given franchise venture.
In this report we rank franchises based on the average revenue generated by a single franchise unit or territory to highlight opportunities with the greatest sales potential.
What Is Average Unit Revenue?
Franchises report unit revenues in slightly different ways, but all generally refer to the total average sales of a single business unit, territory, or similar language that represents the exclusive market of a franchise owner.
Where Does the Data Come From?
The FTC's franchise rule permits franchisors to provide information on actual or potential franchise revenue of franchisee and/or corporate owned units. While franchises are not legally required to report average unit revenue, most do. This allows potential franchisees to estimate the volume they may expect from opening a new franchise business.
How Do We Measure It?
We use data provided by the franchisors in the Franchise Disclosure Document (FDD). As much as possible, we look for revenue of franchised units rather than corporate owned units. Often this data is directly available based on a subset of franchise units that are representative of typical unit performance. In some cases, we may derive average unit revenue from corporate royalty revenue and number of total franchise units.
The following table includes notes from the FDD on the source of AUR provided.
| Closets by Design
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Based on 72 franchised territories
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| Window World
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AUR is for 191 franchise locations open all year.
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| Superior Fence & Rail
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Baesd on 44 Multi-Territory and Single-Territory franchisees.
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| Five Star Bath Solutions
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Based on one owner who operates 6 territories.
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| Garage Living
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Based on 34 franchised units.
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| DreamMaker Bath & Kitchen
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Based on 38 franchise locations open all year
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| New Again Houses
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AUR is for 33 reporting franchise locations open all year.
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| Pirtek
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Based on 104 franchise locations open all year.
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| Archadeck Outdoor Living
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Based on 70 franchised territories that operated for the entire 2023 Fiscal Year Period.
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| USA Insulation
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AUR is per territory for 70 territories owned by 47 franchisees and open all year.
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| Sam the Concrete Man
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Based on 26 franchised businesses.
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| Kitchen Solvers
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Based on 29 franchised outlets.
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| Garage Force
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AUR is based on 41 single unit franchised Garage Force businesses that had been open and continuously operating in the US on a full-time bases for at least one full calendar year as of December 31 2023.
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| Concrete Craft
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AUR based on average sales per territory.
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| Screenmobile
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AUR is per territory for 136 territories open all year.
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Why It's Important
Sales or revenue volume is central to determining the financial viability of a franchise investment. Expected unit revenues combined with a reasonable estimate of operating expenses can help potential franchisees determine the return on their initial investment, and the potential earnings of a franchise opportunity. To learn more about researching franchises, seethe articles in our Franchise Learning Center.
Want to see more franchises actively opening in new markets? See our Franchise Directory.
