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Which Retail Franchises Generate the Most Revenue?

Retail stores are the core of main street businesses, and these franchises offer a retail business model with exceptional average unit revenues.

Which franchise retail stores make the most money for their franchisee owners? We can find out by looking into the disclosed financials of some of the most popular franchise businesses. While franchise brands are not required to disclose sales figures of their franchised outlets, most do – at least in part. In this analysis, we compare Average Unit Revenue (AUR) for franchise brands that operate in the retail sector to find the opportunities that present the greatest sales potential. More on our methodology.

# 1

Ace Hardware

At the top of the list is a staple of Main Street businesses - the hardware store. Ace is the most recognized hardware brand in the U.S. by far.

  • Average Unit Revenue: $4,297,469
  • Average Initial Investment: $1,246,215
  • Cash Required: $250,000
  • Initial Franchise Fee: $10,000
More on This Franchise

# 2

Pet Supplies Plus

Pet ownership soared during and after the Covid-19 pandemic, and so did the growth of the pet supply industry, and this franchise continues to ride the wave.

  • Average Unit Revenue: $2,696,453
  • Average Initial Investment: $1,149,035
  • Cash Required: $200,000
  • Initial Franchise Fee: $49,900
More on This Franchise

# 3

Metal Supermarkets

Metal Supermarkets found a niche in retail hardware that has proven to be very profitable for local franchise owners, with reported gross margins of 50%.

  • Average Unit Revenue: $2,247,827
  • Average Initial Investment: $436,500
  • Cash Required: $125,000
  • Initial Franchise Fee: $44,500
More on This Franchise

# 4

Circle K

Convenience stores thrive in all economies, and every market needs them. Circle K brings big business buying power to local retail business.

  • Average Unit Revenue: $1,928,734
  • Average Initial Investment: $3,608,500
  • Cash Required: $100,000
  • Initial Franchise Fee: $25,000
More on This Franchise

# 5

HobbyTown USA

Especially effective in suburban markets, this hobby franchise store offers a high volume retail concept with a relatively modest initial investment.

  • Average Unit Revenue: $1,464,547
  • Average Initial Investment: $455,250
  • Cash Required: $75,000
  • Initial Franchise Fee: $20,000
More on This Franchise

# 6

Tuffy Tire & Auto Service

Tuffy Tire leverages collective buying power to bring local business owners cost control to a recession resistant local business model.

  • Average Unit Revenue: $1,439,610
  • Average Initial Investment: $478,750
  • Cash Required: $150,000
  • Initial Franchise Fee: $30,000
More on This Franchise

# 7

Plato's Closet

This highly-rated franchise brand brings proprietary pricing technology to the used clothing business to give owners a profitable, high volume local business opportunity with a modest investment.

  • Average Unit Revenue: $1,301,330
  • Average Initial Investment: $345,350
  • Cash Required: $90,000
  • Initial Franchise Fee: $25,000
More on This Franchise

# 8

Uptown Cheapskate

Uptown Cheapskate is the fastest growing clothing resale brand in the U.S., proving popular and profitable with local franchise unit owners.

  • Average Unit Revenue: $1,240,250
  • Average Initial Investment: $493,961
  • Cash Required: $100,000
  • Initial Franchise Fee: $25,000
More on This Franchise

# 9

Play It Again Sports

Markets with young families appreciate the ability to buy and sell sporting goods as their kids grow, and this franchise is the leader of the industry.

  • Average Unit Revenue: $1,186,825
  • Average Initial Investment: $346,900
  • Cash Required: $90,000
  • Initial Franchise Fee: $25,000
More on This Franchise

# 10

Once Upon A Child

Buying and selling children's clothing has become an American pastime, and this brand has created an excellent business opportunity for local entrepreneurs.

  • Average Unit Revenue: $1,172,636
  • Average Initial Investment: $347,600
  • Cash Required: $90,000
  • Initial Franchise Fee: $25,000
More on This Franchise

# 11

Floor Coverings International

Floor Coverings International offers a unique retail model that requires far fewer employees (and the associated wage expense) than a typical store.

  • Average Unit Revenue: $1,111,515
  • Average Initial Investment: $185,750
  • Cash required: $50,000
  • Initial Franchise Fee: $50,000
More on This Franchise

# 12

Relax The Back

This unique franchise focuses on selling high ticket items in the health and wellness niche, keeping inventory to a minimum compared to other retail operations.

  • Average Unit Revenue: $1,058,813
  • Average Initial Investment: $291,280
  • Cash Required: $100,000
  • Initial Franchise Fee: $29,500
More on This Franchise

# 13

FASTSIGNS International

FASTSIGNS enjoys high ratings year after year, and offers a business model with consistent sales focusing on the B2B market.

  • Average Unit Revenue: $998,231
  • Average Initial Investment: $275,325
  • Cash Required: $80,000
  • Initial Franchise Fee: $49,750
More on This Franchise

# 14

Honey Baked Ham

Boasting nearly as many company owned units as franchise stores, Honey Baked Ham shares in the success of its system with its franchisees.

  • Average Unit Revenue: $923,046
  • Average Initial Investment: $574,625
  • Cash Required: $100,000
  • Initial Franchise Fee: $30,000
More on This Franchise

# 15

Pro Image Sports

This popular sports apparel store gives local business owners an opportunity to leverage its brand recognition and buying power to build a local sports-focused retail business.

  • Average Unit Revenue: $900,180
  • Average Initial Investment: $344,425
  • Cash Required: $50,000
  • Initial Franchise Fee: $30,000
More on This Franchise

# 16

Clothes Mentor

Clothes Mentor is an upscale fashion resale store that boasts 65% gross profit margins by focusing on bigger ticket clothing brands.

  • Average Unit Revenue: $877,930
  • Average Initial Investment: $333,750
  • Cash Required: $90,000
  • Initial Franchise Fee: $25,000
More on This Franchise

# 17

Scooter's Coffee

Scooter's Coffee offers a variety of concepts, but focuses on smaller drive-thru experiences that minimize rent and wage expense, making for a simpler, more profitable business.

  • Average Unit Revenue: $876,519
  • Average Initial Investment: $1,069,250
  • Cash Required: $200,000
  • Initial Franchise Fee: $40,000
More on This Franchise

# 18

Great Harvest Bread Co

This retail food franchise centers on selling freshly baked bread, and also offers traditional bakery items.

  • Average Unit Revenue: $872,437
  • Average Initial Investment: $451,055
  • Cash Required: $1,000,000
  • Initial Franchise Fee: $35,000
More on This Franchise

# 19

Kid to Kid

The clothing resale industry is expected to reach $70 billion in the U.S. by 2027, and kids clothes is among the most resold.

  • Average Unit Revenue: $857,000
  • Average Initial Investment: $477,286
  • Cash Required: $100,000
  • Initial Franchise Fee: $25,000
More on This Franchise

# 20

Ziggi's Coffee

Ziggi's Coffee is one of the fastest growing food service franchises, thanks to its efficient store concepts and flexible ownership models.

  • Average Unit Revenue: $845,529
  • Average Initial Investment: $938,750
  • Cash Required: $200,000
  • Initial Franchise Fee: $40,000
More on This Franchise
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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 in Item 19 of the Franchise Disclosure Document. 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.

Ace Hardware

Based on a weighted average of 685 stores operating in five formats: 121 convenience hardware formats, 323 core hardware formats, 189 super hardware formats, 42 home center formats, and 10 contractor-oriented supply formats

Pet Supplies Plus

Based on 320 franchise locations open for at least one full year

Metal Supermarkets

Based on 52 franchisee owned units

Circle K

Based on total merchandise income from the sale of all goods, wares, merchandise, and services sold. Based on 5058 franchise locations open for at least one full year

HobbyTown

Based on 103 franchise locations open for at least one full year

Tuffy Tire & Auto Service

Average Unit Revenue is based on all 66 Franchise locations open at least two years with at least 6 bays

Plato's Closet

Based on 463 franchise locations open for at least one full year

Uptown Cheapskate

Based on 82 franchise locations open for at least one full year

Play It Again Sports

Based on 252 franchise locations open for at least one full year

Once Upon A Child

Based on 378 franchise locations open for at least one full year

Floor Coverings International

Based on 109 Franchise locations open at least two years

Relax The Back

Based on 77 franchise locations open for at least one full year

FASTSIGNS

Based on 665 franchise locations open for at least one full year

HoneyBaked Ham

Based on 210 franchise locations open for at least three full years.

Pro Image Sports

Based on 113 Franchise locations open for at least one full year

Clothes Mentor

Based on 121 franchise locations open for at least one full year

Scooters Coffee

Based on 421 franchise kiosk locations open for at least one full year

Great Harvest Bakery Cafe

Based on 378 franchise single site bakery café locations open for at least one full year

Kid to Kid

Based on 79 franchise locations open for at least one full year

Ziggi's Coffee

Average Unit Revenue is a weighted average of 20 drive-thru only stores and 14 café with drive-thru stores

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, see the articles in our Franchise Learning Center.

Want to see more franchises actively opening in new markets? See our Franchise Directory.


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