9 best restaurant franchise opportunities for 2025

While inflation dominates headlines and economic uncertainty looms, franchise restaurants are bucking the trend. The industry has shown record growth for the second consecutive year. The International Franchise Association projects 200,000 new units in 2025, with total output exceeding $936.4 billion, a 4.4% increase in one year.

Beyond the impressive numbers, market trends are also making 2025 particularly promising for restaurant franchise investors. Fast-casual restaurant concepts are surging as consumers prioritize convenience. Technology is streamlining everything from operations to payments, and diners are willing to pay more for sustainable, locally-sourced offerings. The rise of virtual kitchens and subscription models is revolutionizing delivery, creating new revenue opportunities.

The most successful food franchises in 2025 combine operational innovation, customizable menus, and scalable business models. Our expert guide examines key considerations for potential franchisees, highlights 9 investment-worthy restaurant franchises, and explores the future landscape of restaurant franchising.

How to evaluate a restaurant franchise investment

Thinking about investing in a restaurant franchise but not sure how to get started? Here's a suggestion – look beyond the brand name! Carefully assess the full business opportunity by considering the following factors:

Initial investment costs

While not as costly as starting a restaurant from scratch, franchises still come with upfront expenses. These include franchise fees, build-out, equipment, and working capital. Franchise fees typically range from $25,000 to $65,000, but total initial investments can increase with real estate and inventory costs.

Ongoing royalty fees must also be considered. These usually range from 5% to 9% of your gross sales, a potential impact on your bottom line. Identify the best food franchise for your budget by comparing these costs across your franchise restaurants list.

Brand reputation and customer demand

A brand's reputation matters. Not only does it give you instant credibility, it almost always comes with a loyal customer base and solid demand. Research customer reviews, brand history, and growth trends to ensure you're joining a top franchise system with a strong future.

Franchise profitability and ROI potential

Profitability varies across franchise industry categories. Food and beverage franchises generally see annual ROIs between 4% and 10%, with some fast food franchises surpassing that average. Assess the franchise's average revenues, profit margins, and payback period, and always review the Franchise Disclosure Document (FDD) for details on the restaurant's past financial performance.

Training and support provided by the franchisor

The best restaurant franchises want you to succeed. Investigate who offers comprehensive training, operational manuals, marketing assistance, and technology integration. First-time owners will especially value reliable franchisor support, as will owners expanding to multiple locations.

Market trends and scalability potential

The most successful franchise owners know that adaptation to changing consumer preferences and operational realities is key to long-term profitability. In 2025, fast-casual concepts, health-focused menus, and technology-driven service models are dominating the list of best franchise restaurants. Scalable models are also important, allowing franchisees freedom to expand while leveraging proven systems.

Leveraging technology for multi-location success

Integrated technology platforms are a game changer when managing multiple restaurant franchises. All-in-one POS systems, like Otter's, and AI-powered marketing campaigns simplify complex, multi-location orders while automatically optimizing menus and customer analytics. Unified channel management and automated reporting help franchise owners reduce errors and boost profitability.

Tools for opening and scaling franchise locations

For new franchisees and existing operators in the midst of expansion, Otter Launch is a transformative service. It helps you secure licenses and permits while offering discounted access to Otter's POS and management systems, making it easier to open or scale locations with efficiency. Otter Launch allows franchise owners to focus on growth and customer experience, while leaving the operational and regulatory complexities to be handled by the experts.

Evaluating a restaurant franchise investment is about finding a brand that aligns with your goals, offers robust support, and is positioned for future growth. Next, we'll spotlight the 9 best restaurant franchises of 2025, showcasing brands that excel across these critical criteria.

The 9 best restaurant franchises to invest in

Think you're ready to run your own restaurant? Already have a restaurant that you'd like to expand? Franchising could be the right move. Whether you're eyeing a fast food powerhouse or a fast-growing sub shop, 2025 is packed with opportunities for restaurateurs ready to take the leap. Let's dive into the top restaurant franchises leading the industry this year.

1. McDonald's

McDonald's is the world's most recognizable quick-service restaurant. It boasts over 40,000 locations worldwide and plans to reach 50,000 by 2027. McDonald's has, and continues to, set the standard for franchise success.

Investment & fees:

• Franchise fee: $45,000
• Total estimated investment: $522,500 – $2,642,000
• Ongoing royalty fee: 4%–5% of gross sales, plus rent and advertising costs
• Required liquid assets: $500,000 in non-borrowed personal resources

Profitability & growth potential: According to Franchise Empire, the average U.S. McDonald's franchise generates an annual revenue of about $2.8 million, with owners earning approximately $150,000 per year. Operational efficiency and high sales volumes typically match initial investment within a year or two. McDonald's is experiencing its fastest global expansion ever, with business growth increasing 30% since 2019 and ambitious plans for digital engagement and loyalty programs.

Why it's trending:

• Unmatched brand recognition
• International customer loyalty
• Rapid expansion into new markets and digital platforms
• Strong focus on digital sales, loyalty programs, and tech-powered customer engagement

How Otter can help: Otter's integrated platform includes centralized order management, real-time sales analytics, and performance tracking, making it easier to maintain consistency and maximize profitability across multiple locations.

2. Firehouse Subs

Firehouse Subs is a fast-casual sandwich franchise known for its commitment to community service through the Firehouse Subs Public Safety Foundation. The steadily expanding brand currently has 1,200 locations across the U.S., with customers appreciating the unique menu and a strong brand mission.

Investment & fees:

• Franchise fee: $20,000
• Total estimated investment: $431,550 – $907,500
• Ongoing royalty fee: 6% of gross sales, plus a 3–5% advertising fee
• Required liquid assets: $100,000 source: VettedBiz

Profitability & growth potential: According to Franchise Chatter, the average Firehouse Subs franchise generates annual sales of around $900,000. Top-performing stores are exceeding $1.1 million. The brand's focus on quality ingredients, community engagement, and operational support has helped franchisees achieve steady growth and solid returns.

Why it's trending:

• Strong community involvement and charitable mission
• Growing demand for quick, customizable sandwiches
• Brand loyalty driven by unique menu and customer experience
• Consistent expansion into new markets

How Otter can help: Otter's platform streamlines order management and integrates sales data from all channels, helping franchisees optimize operations, track performance, and deliver a seamless guest experience across every location.

3. Jersey Mike's Subs

Jersey Mike's Subs is one of the fastest-growing chains in the U.S., with 3,100 locations and continuous expansion from its original East Coast location. The fast-casual sandwich franchise is hailed for fresh, made-to-order subs and a strong focus on community involvement.

Investment & fees:

• Franchise fee: $18,500
• Total estimated investment: $181,903 – $1,413,592
• Ongoing royalty fee: 6.5% of gross sales, plus a 5% advertising fee
• Required liquid assets: $100,000
• Net worth requirement: $300,000 source: Sharp Sheets

Profitability & growth potential: Jersey Mike's reported an average unit volume (AUV) of $1.339 million in 2024. Median gross sales reached $1,272,804 per location. Earnings are estimated at around $190,000 per year, with a failure rate well below the industry average. The brand's 13% year-over-year growth rate surpasses its competitors.

Why it's trending:

• Rapid national expansion
• High sales-to-investment ratio
• Strong community engagement and customer loyalty
• Regular menu innovation

How Otter can help: Otter's platform centralizes order management, automates reporting, and provides real-time analytics, making it easy to scale operations and optimize performance across multiple locations.

4. Wingstop

Wingstop is a fast-casual brand specializing in chicken wings, fries, and signature sauces. It leads with a digital-first approach in its 2,200 locations worldwide, making it a consistent leader in the chicken segment.

Investment & fees:

• Franchise fee: $20,000 per store
• Total estimated investment: $347,600 – $759,100
• Ongoing royalty fee: 6% of monthly gross sales, plus a 4% marketing fee
• Required net worth: $1,200,000
• Required liquid assets: $600,000 source: Franchise Empire

Profitability & growth potential: Wingstop revealed its domestic average unit volume (AUV) reached $2.1 million in 2025, with system-wide sales up 36.8% in 2024. Franchisees benefit from high digital sales (72% of system sales) and a proven, scalable business model. The chain opened 126 net new stores in Q1 2025 alone, marking its 21st consecutive year of same-store sales growth.

Why it's trending:

• High digital sales and streamlined ordering
• Robust same-store sales growth
• Rapid domestic and international expansion
• Strong brand identity in the chicken segment

How Otter can help: Otter integrates digital orders, streamlines kitchen operations, and delivers actionable sales analytics, helping franchisees boost efficiency and profitability.

5. Popeyes Louisiana Kitchen

Popeyes is a fast food franchise famous for serving up Louisiana-style fried chicken quickly and efficiently. With over 3,700 locations globally, Popeyes continues to capture market share in the chicken QSR segment.

Investment & fees:

• Franchise fee: $50,000
• Total estimated investment: $423,800 – $2,620,800 (some sources cite up to $3,923,000 for free-standing units)
• Ongoing royalty fee: 5% of gross sales
• Required working capital: $20,000 – $30,000 source: Sharp Sheets

Profitability & growth potential: Popeyes franchisees generally see strong sales and top locations can exceed $1.8 million in annual revenue. The brand's focus on menu innovation and a plan for aggressive expansion has driven regular system-wide growth.

Why it's trending:

• High demand for fried chicken and spicy flavors
• Menu innovation and viral product launches
• Expansion throughout the U.S. and internationally
• Strong brand recognition

How Otter can help: Otter's order integration and performance dashboards help Popeyes operators manage high-volume sales and maintain consistency across multiple locations.

6. KFC

KFC is a global fried chicken powerhouse with a history of innovation and an extensive international presence. Known for its "finger-lickin' good" chicken and beloved chicken sandwiches, KFC operates more than 25,000 restaurants throughout the world.

Investment & fees:

• Franchise fee: $45,000
• Total estimated investment: $1,852,825 – $3,771,550
• Ongoing royalty fee: 5% of gross sales, plus a 5% advertising fee source: Franchise Direct

Profitability & growth potential: KFC's average U.S. unit generates about $1.2 million in annual sales. International locations often outperform domestic units. The brand's continued investment in digital ordering and menu innovation positions it for strong growth in 2025.

Why it's trending:

• Recognizable global brand with high consumer trust
• Ongoing menu innovation and digital transformation
• Expanding into new markets and formats
• Strong support for franchisees

How Otter can help: Otter's centralized order management and analytics streamline operations and help franchise business owners adapt quickly to changing customer preferences.

7. Burger King

One of the largest and most recognized fast food franchises, Burger King is best known for its flame-grilled burgers and the iconic Whopper. A leader in the QSR burger segment, Burger King has over 19,000 restaurants worldwide.

Investment & fees:

• Franchise fee: $50,000
• Total estimated investment: $1,877,600 – $3,398,600
• Ongoing royalty fee: 4.5% of gross sales, plus a 4% advertising fee source: Burger King

Profitability & growth potential: In 2024, Burger King U.S. averaged $205,000 in profitability per store. Top operators earned over $275,000. The brand is investing heavily in store modernization and improvements to its operations with an aim to boost average profitability above $230,000 by 2026.

Why it's trending:

• Major investments in remodels and technology
• Focus on operational excellence and profitability
• Strong global brand and marketing campaigns
• Expanding international footprint

How Otter can help: Otter's unified platform supports order integration, real-time inventory tracking, and multi-unit performance analytics.

8. Taco Bell

Taco Bell is a leading Mexican-inspired QSR brand, famous for its innovative menu and loyal fan base. With over 8,700 locations worldwide, Taco Bell continues to set trends in the fast food industry.

Investment & fees:

• Franchise fee: $25,000 – $45,000
• Total estimated investment: $610,750 – $3,980,200
• Required net worth: $5 million
• Required liquid assets: $2 million
• Ongoing royalty fee: 5.5% of gross sales, plus a 4.25% marketing fee source: Lending Tree

Profitability & growth potential: In 2023, Taco Bell's average unit volume (AUV) reached $2.1 million. According to QSR Magazine, company-owned stores achieved over 24% restaurant-level margins. The brand is working toward an increase in AUV to $3 million by 2030, largely driven by menu innovation and digital sales.

Why it's trending:

• Record profitability and high margins
• Aggressive menu innovation and marketing
• Expanding international and nontraditional formats
• Strong digital and loyalty program growth

How Otter can help: Otter's order management and analytics tools optimize kitchen flow, track digital sales, and manage multiple store locations efficiently.

9. Wendy's

Wendy's is one of the world's major QSR burger chains. It prides itself on fresh, never frozen beef and regular transformations to its menu. Wendy's continues to grow through new formats and digital engagement, and presently has over 7,000 restaurants worldwide.

Investment & fees:

• Franchise fee: $50,000
• Total estimated investment: $310,095 – $2,828,707
• Ongoing royalty fee: 4% of gross sales, plus a 1.5%–3.5% advertising fee
• Required net worth: $1,000,000
• Required liquid assets: $500,000 source: Wendy's

Profitability & growth potential: Wendy's reported systemwide sales of $14.5 billion in 2024, marking 14 consecutive years of same-restaurant sales growth. The brand is heavily investing in digital sales and menu innovation with a focus on breakfast in an attempt to drive continued momentum.

Why it's trending:

• Strong digital sales and loyalty program growth
• Menu innovation, especially in breakfast
• Consistent global expansion and new store formats
• Operational excellence and franchisee support

How Otter can help: Otter's platform enables order management from all channels, live alerts, and operations cohesion for maximum efficiency.

Future trends in restaurant franchising

In early 2025, Wendy's made headlines by rolling out "FreshAI," an AI-powered drive-thru ordering system. Its ability to adapt to a high level of menu customizations improved the customer experience and freed up staff to focus on higher-value tasks. It signaled to the industry the arrival of broader industry shifts. Let's explore the key trends shaping the future of restaurant franchising.

Tech-driven dining experiences

AI and automation are now central to franchise operations. Establishments beyond Wendy's are integrating order management systems to streamline operations. Mobile app-based loyalty programs are using AI to personalize rewards and recommendations based on individual diner preferences.

Voice-activated ordering, self-service kiosks, and AI-powered chatbots are enhancing convenience and accessibility, reducing wait times, and minimizing errors in QSRs.

Health-conscious and sustainability-focused brands

Consumer demand for healthier, sustainable options is reshaping franchise menus. McDonald's has added vegan options to its menu, and Taco Bell is removing artificial colors and flavors. AI-driven energy management, digital receipts, and blockchain-enabled supply chains help franchises minimize waste and ensure sustainability.

The rise of virtual brands and ghost kitchens

Delivery-only concepts and ghost kitchens and virtual brands are multiplying, allowing franchises to expand with lower overhead, reach new markets, and meet the surge in online ordering. 

Global expansion trends

American brands like Five Guys, McDonald's, and Starbucks are rapidly expanding in Europe and the Middle East. Franchise operators are increasingly targeting emerging markets, where demand for Western dining experiences is surging, and are most successful when adapting to local tastes.

How Otter future-proofs franchise operations

Otter's all-in-one cloud-based POS and automation solutions are designed to help franchises navigate these trends. With AI-powered features like live operational alerts and unified analytics, Otter empowers franchises to adapt quickly to market changes, streamline workflows, and capture new revenue opportunities.

FAQs

How much does it cost to open a restaurant franchise in 2025?

Opening a restaurant franchise in 2025 typically requires an initial investment ranging from $200,000 to over $2 million, depending on the brand, location, size, and build-out costs. Franchise fees alone can range from $10,000 to $90,000, with additional expenses for real estate, equipment, staffing, and marketing.

How do I finance a franchise investment?

You can finance the startup costs of a franchise several ways:

• SBA loans
• Traditional bank loans
• Franchisor financing
• Equipment financing
• Personal savings or loans from family and friends

What are the risks of owning a restaurant franchise?

Risks of owning a restaurant franchise include:

• High upfront and ongoing costs
• Limited flexibility and creativity due to strict franchisor guidelines
• Brand reputation risks if other franchisees underperform
• Operational risks like food safety, injury liability, and maintaining consistency across locations

What software and hardware should I use at my franchise?

Most franchises require specific POS and management systems, but some allow flexibility. Modern franchises benefit from all-in-one POS platforms like Otter, which consolidates online ordering, payments, and analytics across channels. For example, Hummus Republic, an Otter partner, has successfully streamlined operations and boosted sales using Otter's POS and Kiosk systems, which integrate with delivery apps and offer robust reporting.

How does Otter help restaurant franchises streamline operations?

Otter provides a cloud-based POS system that centralizes orders from all channels, automates order processing, and delivers real-time analytics. Features like Always On (live alerts for downtime), Revenue Recapture (automated dispute resolution), and self-service kiosks help franchises reduce errors, maximize efficiency, and drive sales across multiple locations.

Is Otter good for quick service restaurant franchises and fast casual franchises?

Yes, Otter is ideal for QSRs, fast casual franchises, and fast-food restaurants. It consolidates all ordering channels (delivery, dine-in, takeout, kiosk) into one system and offers advanced analytics and automation, making it easy to streamline operations and scale across locations. Otter is recognized as a top POS choice for multi-location brands seeking efficiency and growth. Check out how our POS works!