In 2025, restaurant franchising continues to prove its resilience. However, profitability isn't about foot traffic anymore. It’s about unit economics, digital presence, and cash flow velocity.
The most profitable franchises aren’t just revenue machines, they also build sustainable brands, with, scalable profitability, high operational leverage and digitally enabled customer acquisition engines.
Whether you’re investing $500K or $5M+, you need data-backed clarity, financial discipline, strategic execution and digital marketing mastery. In this guide, we break down the top 40 most profitable restaurant franchises in the US, and explain exactly how to evaluate a franchise’s true ROI, using benchmarks from brands like McDonald’s, Chick-fil-A, Bojangles, Domino’s, and more.
1. What is Franchise Profitability?
Understanding franchise profitability from an operator-investor perspective is quite different than from a single-location manager.
Profitability in franchising isn’t just sales. It’s the intersection of :
AUV (Average Unit Volume) shows the revenue potential of a single location.Bottom-line margins (EBITDA), reflect how efficiently a store converts sales into profit.Capital structure (capex, rent, buildout time)Operational leverage (labor, COGS, tech stack) shape your real marginsCash-on-cash returns measure how fast your investment pays you back.
Most importantly, it's crucial to understand that high AUV ≠ high profit.
Some brands have $3M+ AUVs but 5–7% profit margins due to heavy labor or rent burdens. Others generate $1.2M with 18% net margins and faster breakeven. Again, your business model will vary depending on your size, location, concept, etc.
In 2025, it’s no longer enough to open in a high-traffic area. The new profitability formula also includes:
- Digital-first visibility (SEO, GEO, GBP, reviews)
- Demand generation through local marketing
- Menu simplicity + fulfillment speed
- Brand reputation via social & UGC
Key Metrics to Evaluate Franchise Profitability
| Metric |
Description |
Why It Matters |
| AUV |
Avg. annual revenue per location |
Core sales benchmark |
| EBITDA per unit |
Profit before interest/capex |
Measures true cash-generating power |
| Cash-on-cash ROI |
Net cash ÷ investment |
Key for multi-unit scaling decisions |
| Labor/Food % |
Operating expense ratio |
Indicates margin efficiency |
| Same-store sales |
Growth in existing units |
Signals strong ops & marketing |
| Remodel ROI |
Sales lift from upgrades |
Justifies reinvestment |
| Digital Presence |
SEO, reviews, GBP, Google Posts |
Directly drives foot traffic & revenue |
Franchise Performance Benchmarks (2025)
| Category |
Avg. Revenue |
Profit Margin |
Cash Flow Potential |
Notes |
| Top QSR (e.g. McDonald’s Franchisee) |
$3.97M |
12–15% |
$500K–$700K |
78% of stores > $3M AUV |
| Corporate QSR (McOpCo) |
$4.79M |
15–18% |
N/A |
Median: $4.61M |
| QSR Avg (All Chains) |
$1.53M |
10–12% |
$150K–$200K |
Based on 200K+ units |
| Full-Service (e.g. BWW) |
$2.35M |
6–10% |
$140K–$220K |
Higher fixed cost burden |
| Coffee Chains (Dunkin', Starbucks) |
$1.2M–$1.7M |
12–18% |
$200K+ |
High frequency + low food cost |
| Pizza Chains (Franchisees) |
$798K–$1.3M |
12–16% |
$100K–$250K |
Strong delivery efficiencies |
| Bakery/Snack (Crumbl, Krispy Kreme) |
$1.8M–$2.7M |
15–20% |
$250K–$400K |
Lean labor, high price per item |
2. Top 40 Most Profitable Restaurant Franchises in the US in 2025
*Ranked by AUV, systemwide sales, unit count, and investment ROI.
We analyzed 100+ top brands across QSR, fast casual, bakery, coffee, and pizza, and selected the top 40 based on revenue performance, margin profiles, and growth potential.
| Rank |
Brand |
AUV |
Systemwide Sales |
U.S. Units |
Notes |
| 1 | Chick-fil-A | $7.5M | $22.7B | 3,109 | Highest AUV in QSR; low investment to enter |
| 2 | Raising Cane’s | $6.56M | $4.96B | 828 | 97% corporate; extreme throughput & margin |
| 3 | Bojangles (Boneless) | $3.24M | $1.88B | 813 | Optimized new format with high breakfast mix |
| 4 | Hawaiian Bros | $3.09M | $119.5M | 48 | Fast-growing; compact build and low SKUs |
| 5 | Chipotle | $3.2M | $11.1B | 3,644 | Corporate-only; targets $4M/unit with automation |
| 6 | Culver’s | $3.69M | $3.68B | 997 | Midwest powerhouse; premium product + loyalty |
| 7 | Panera Bread | $3.23M | $6.78B | 1,156 | Strong catering and drive-thru expansion |
| 8 | QDOBA (Top Quartile) | $2.3M+ | $1.2B | 747 | Multiple revenue streams; flexible formats |
| 9 | Cheba Hut | $2.3M | $122M | 65 | Unique branding; high ticket average with bar |
| 10 | Firehouse Subs | $1.34M | $1.15B | 1,191 | Top 25% units hit $1.34M AUV; major franchisee support |
| 11 | Shipley Do-Nuts | $1.2M (Top 50%) | $307M | 367 | Flexible formats; strong margin profile |
| 12 | Potbelly (Traditional) | $2.29M | $559M | 429 | Tech-forward design with low-cost digital kitchen |
| 13 | Chicken Salad Chick | $1.49M | $352M | 270 | Simple model, no fryers, closed Sundays |
| 14 | Fazoli’s | $1.44M | $287M | 207 | Italian QSR; low build costs, strong brand |
| 15 | Pancheros | $1.52M | $111.5M | 73 | High ticket; fresh-press tortillas & streamlined ops |
| 16 | Jersey Mike’s | $1.32M | $3.73B | 2,997 | Explosive growth; strong ops support |
| 17 | Ellianos Coffee | $1.02M | NA | 51 | Double drive-thru; projected 100+ units by 2025 |
| 18 | Smoothie King | $661K | $722M | 1,152 | Low build cost + expanding health trends |
| 19 | Beans & Brews | $696K | $46.5M | 80 | High-altitude roasting; drive-thru model |
| 20 | McDonald’s (Franchise) | $3.97M | $53.4B | 13,559 | Consistently strong ROI; 78% units above $3M |
| 21 | Burger King | $1.64M | $11.0B | 6,701 | Remodels boosting per-unit profitability |
| 22 | Domino’s Pizza | $1.35M | $9.5B | 7,014 | Lean ops + dominant delivery logistics |
| 23 | Papa John’s | $1.23M | $3.85B | 3,291 | Franchise-friendly, high-margin pizza model |
| 24 | Pizza Hut | $839K | $5.5B | 6,557 | High scale, optimizing new prototype builds |
| 25 | Marco’s Pizza | $932K | $1.05B | 1,117 | Franchise-first brand with strong ROI |
| 26 | Little Caesars | $900K | $3.5B | 3,705 | Efficient model, strong brand recognition |
| 27 | Crumbl Cookies | $1.84M | $1.0B+ | 1,058 | Massive AUV, low labor, high margin |
| 28 | Krispy Kreme | $2.76M | $991M | 57 | Premium AUV in limited footprint |
| 29 | Jeff’s Bagel Run | $1.5M (Top Unit) | NA | <10 | Small but powerful emerging QSR |
| 30 | Wendy’s | $2.1M | $12.5B | 5,933 | Restructuring, focusing on drive-thru formats |
| 31 | Popeyes | $1.82M | $5.73B | 3,148 | Massive per-unit gains with remodel push |
| 32 | Tim Hortons | $1.19M | $776M | 630 | Strong Canada/U.S. crossover profitability |
| 33 | Subway | $495K | $9.65B | 19,502 | Low cost, high volume; undergoing turnaround |
| 34 | Shake Shack | $3.9M | $1.35B | 44 | Premium burger concept with strong margins |
| 35 | Freddy’s Frozen Custard | $1.9M | $988M | 515 | Mid-size chain with fast-growing unit economics |
| 36 | El Pollo Loco | $2.3M | $1.1B | 173 | Strong regional concept; optimized for throughput |
| 37 | Checkers & Rally’s | $1.17M | $853M | 532 | Drive-thru focused with updated AI tech |
| 38 | Wingstop | $2.14M | $4.76B | 2,204 | Lean menu, explosive growth, high-margin |
| 39 | Tropical Smoothie Café | $1.01M | $1.42B | 1,514 | Health-focused, simple model with high repeat |
| 40 | Dutch Bros | $2.02M | $1.82B | 312 | Fast-moving coffee brand with cult following |
Franchise Profit ≠ Foot Traffic Alone. Digital Drives Revenue.
Profitability in restaurant franchising in 2025 isn’t just about chasing brands with high AUVs. Tt’s about backing proven operational models that deliver repeatable, bankable cash flow.
The smartest operators this year are focusing on:
- Multi-unit deals with EBITDA-positive brands
- Drive-thru-only and modular builds to reduce capex
- Maximizing labor efficiency and SKU simplicity
- Value-focused marketing and digital channels
Franchises like Chick-fil-A, Bojangles (boneless format), and Hawaiian Bros prove that simplicity scales, and that profitability isn’t just possible, it’s programmable when you focus on the right metrics.
According to Harvard Business Review, gaining just +1 star on Yelp drives a +9% boost in revenue.
And digital visibility is no longer optional:
- 72% of customers choose a restaurant based on local Google ratings and content.
- 47% of searches include "near me" — and Google ranks relevance, distance, and prominence, not brand name.
At Malou, we give franchises an edge:
- +174 new customers/month/location (tracked lift)
- +4.7% average revenue increase
- 1-click updates to 100+ Google Business Profiles
- Automated, tone-customizable review responses
- AI-assisted SEO Posts, performance benchmarking, and UGC amplification
The most profitable brands in 2025 all share one trait: they dominate digitally. To discuss your strategy, call one of our experts at +1 929 494 52 10 or run a free restaurant diagnosis
.jpg)
.jpg)
