If you are looking for new business opportunities, you might want to consider opening up shop in Texas, which has been at the top of the list for franchise growth in the US for three consecutive years according to the International Franchise Association (IFA).
In fact, Texas is anticipated to welcome 2,603 new franchise units this year, contributing to job creation at the local level–with an estimated 869,265 positions, and adding $89.2 billion to the economic output.
The overall growth trajectory of franchising in Texas is rising steadily. In addition to the 2.2% growth of 2023, the report predicts a further 1.9% expansion in franchises for 2024.
The top two industry sectors in terms of growth are personal services and quick service restaurants:
If we look at the bigger picture, the Southeast region of the United States, including Texas, houses approximately 30% of all franchised businesses nationwide. These businesses collectively employ 2.6 million individuals and generate $268.2 billion in franchise revenue.
On top of Texas opportunities for franchisees, 99% of the businesses in the state are small businesses–according to the US Small Business Administration. And with such a thriving SMBs landscape, it’s no surprise that the state has recently passed new tax regulation to further support small business owners:
Without further ado, below is the list of top 5 franchises to own in 2024 in Texas.
Quick Overview
Wingstop, originating from Garland, Texas, is a popular chain of restaurants specializing in chicken wings. With an initial investment ranging from $325,616 to $974,733, this franchise has grown steadily over the past three years, adding 464 net units to its portfolio. Currently, Wingstop has 1,705 locations across the United States, and a global presence extending to over 2,200 locations worldwide.
With an average investment of approximately $450,000 and a payback period of under two years (based on current AUVs), the company’s appeal is clear.
Here’s some of the hard data about Wingstop that you’ll want to know if you’re considering becoming a franchisee:
Wingstop remains focused on expansion, opening 255 net new restaurants globally in 2023 and projecting the launch of 270 new restaurants worldwide in 2024. Notably, independent franchisees drive approximately 98% of Wingstop’s total restaurant count, emphasizing the brand’s franchise-centric model.
Quick Overview
Restore Hyper Wellness + Cryotherapy, headquartered in Austin, Texas, was established in 2014, but has quickly made its mark in the Health & Wellness industry–including IV drip therapy, intramuscular (IM) shots, mild hyperbaric oxygen therapy, whole body and localized cryotherapy, infrared sauna, red light therapy, compression, HydraFacial, Circadia, and Cryoskin. Despite being a young brand, the franchise has grown rapidly, currently spanning 225+ locations across the United States.
With an initial investment ranging from $779,515 and $1,318,840, franchisees are drawn to the brand’s promise, backed by a $44,500 franchise fee and a 7% royalty fee.
Here’s some of the hard data about Restore that you’ll want to know if you’re considering becoming a franchisee:
At the core of Restore’s offerings are its one-of-a-kind wellness services, including whole-body cryotherapy and IV therapy. Whole-body cryotherapy, known for immersing the body in temperatures as low as -260°F, offers benefits such as calorie burning (500-800 per session). Meanwhile, IV therapy delivers hydration and micronutrients, catering to diverse health and wellness needs.
Restore has positioned itself as a market leader in one of the fastest-growing segments of healthcare. Specializing in chronic pain management, injury recovery, enhanced athletic performance, and healthspan longevity, the franchise addresses critical wellness concerns with its comprehensive suite of services.
Quick Overview
Headquartered in San Antonio, Texas, Fastest Labs is part of the the Drug Testing industry, providing lab collections for drug, alcohol, and DNA testing. The company has been growing steadily over the past three years, adding 87 net units to its network, which currently stands at 138 locations across the US.
With an initial investment ranging from $101,150 to $132,700, most prospective franchisees are attracted by an average annual revenue per franchise location of $203,000, a franchise fee of $59,500, and a royalty fee of 7%.
Here’s some of the hard data about Fastest Labs that you’ll want to know if you’re considering becoming a franchisee:
Fastest Labs conducts testing in-house, eliminating the time-consuming process of sending samples to external facilities. Their franchise model situates their testing location strategically, making their service accessible and convenient. With a focus on delivering quick results, often within a short 10 minutes, Fastest Labs caters to customers with urgent needs for quick turnaround times.
Quick Overview
Headquartered in Bedford, Texas, Urban Air Adventure Parks offers entertaining experiences for families across the nation. Urban Air has witnessed substantial growth over the past three years, adding 235 net units to its network, which now spans over 350 parks open or under development. In Texas alone, the franchise has established at least 10 Adventure Park locations, including in prominent cities like San Antonio, Houston, Fort Worth, Dallas, and Austin.
Urban Air franchises need an initial investment ranging from $3,707,592 to $8,192,274. Aspiring business owners are drawn to the brand’s average gross sales per park of $3,338,708 to $4,289,692, and thanks to its $75,000 franchise fee and 7% royalty fee.
Here’s some of the hard data about Urban Air that you’ll want to know if you’re considering becoming a franchisee:
Urban Air offers an extensive array of experiences, including Sky Rider, Battle Beams, and laser tag. With edodgeball courts, electric Go-Karting, and obstacle courses, Urban Air has solidified its position as the largest indoor adventure park operator globally. Additionally, each venue includes fast-casual cafés, ensuring a complete entertainment package for families.
Quick Overview
– Industry: Baseball & Softball Instruction
– Initial investment: $1,010,000 to $2,300,000
– Net unit growth over past 3 years: 47
– Total U.S. locations: 143
– Franchise fee: $45,000
– Royalty fee: 8%
Headquartered in Carrollton, Texas, D-Bat has become a cornerstone in the baseball & softball instruction industry, offering aspiring athletes indoor training facilities equipped with batting cages. Additionally, D-Bat franchises offer a range of merchandise, including bats, gloves, and apparel, catering to the needs of players at all levels. The company has been growing over the past three years, adding 47 units to its network, which now encompasses 143 locations across the United States.
Prospective franchisees can enter the D-Bat network with an initial investment ranging from $499,650 to $972,100 with a franchise fee of $45,000 and a 8% royalty fee.
Here’s some of the hard data about D-Bat that you’ll want to know if you’re considering becoming a franchisee:
Franchisees benefit from comprehensive training, marketing support, and access to D-Bat’s proprietary software system for managing their businesses efficiently. Through these resources, D-Bat empowers franchisees to deliver exceptional service and training experiences to athletes of all ages and skill levels, solidifying its position as a leader in baseball and softball instruction.
It may seem obvious, but before you make your move you need to study the local competitive landscape.
Much like Burger King only opens where McDonals is already present, some competition in the same area can indicate a viable market. However, you’d do well to make sure your target location isn’t oversaturated with similar concepts.
Franchise success rates in Texas tend to be high, with studies showing a 90-95% success rate for franchises, outperforming independent businesses.
Every brand does this a bit differently, but remember: your success means more money in the franchise’s pockets too. That’s why they will provide you with a lot of support to get you started, including guidelines, research, and insights to assist you in choosing an optimal location.
One of the often unwritten rules of establishing a franchise is to involve the franchisor early in the selection process before finalizing any location to ensure their approval and verify that the chosen space aligns with their requirements without any conflicts.
Franchisees can benefit from the expertise of franchisors, potentially contributing to the high success rates observed in the industry.
As mentioned at the beginning of this article, Texas has passed new tax legislation that makes it easier to be an entrepreneur.
A couple of additional things to keep top of mind:
Upfront costs are just as important as ongoing operating costs and royalty fees. While buildout expenses, equipment, and inventory might be a significant hit in the startup phase, you also have to factor in advertising, marketing, and other recurring expenses in the long run.
The average franchise business costs $150,000 to start, according to Franchise Business Review data, with startup costs in Texas ranging from $10,000 to $5 million.
However, franchise success rates tend to drop when startup costs are lower, so be warned that an adequate initial investment may be the key to success just as much as having sufficient financial resources to cover ongoing expenses.
Know your audience! To succeed in any business you must understand the demographics and target market in your desired area. As of the 2020 US census, the total population of Texas was 29,145,505–making the Lone State State a fantastic choice for entrepreneurs seeking to enter a growing market.
Here is where Franchise Mapping software like Maptive can really make a difference. With Maptive, you can analyze population density, income levels, age groups, and consumer preferences to gauge demand for your franchise’s products or services.
Maptive can also be a game changer in site selection, helping you evaluate foot traffic, visibility, accessibility, and parking availability at potential locations.
Keep in mind that while high-traffic areas near busy intersections or shopping centers are often preferable, Texas has experienced a population increase of 3.9 million since the 2010 census, and that could have changed demand in various regions.
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