The 5 Best Franchises to Own in Texas in 2024

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:

  • The personal services sector encompasses beauty, health, fitness, education, and pet care services. It is projected to lead the charge with a 3% increase, totaling 124,508 units. 
  • Quick service restaurants (QSRs) show an anticipated 2.2% rise, bringing the total number of units to over 199,000 by the end of 2024.
  • The Lodging Industry–including hotels, B&Bs, resorts, hostels, motels, and others–also deserves an honorable mention, with a projected 0.9% increase in the number of franchises, reaching 36,000 locations.  

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:

  • Form 05-163 (Texas franchise tax “No Tax Due Report”) was discontinued in an effort to ease tax compliance burdens. This means that the no tax due threshold for Texas franchise tax reports due on or after January 1, 2024 was increased to $2.47 million in annualized total revenue–so businesses meeting this criteria are exempt from filing a No Tax Due Report.
  • The compensation limit was increased, offering additional relief and support to businesses operating in the state. Adjustments in the compensation deduction limit per person increased from $400,000 to $450,000 for Texas franchise tax reports due in 2024

Without further ado, below is the list of top 5 franchises to own in 2024 in Texas.

1. Wingstop (Founded in Garland, TX)

Wingstop Locations in Texas

Quick Overview

  • Industry: Restaurant
  • Initial investment: $325,616 to $974,733
  • Net unit growth over past 3 years: 464
  • Total U.S. locations: 1,705
  • Franchise fee: $20,000
  • Royalty fee: 6%

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:

  • The company’s stock performance has been strong, especially in the last couple of years, undoubtedly thanks to achieving its 20th consecutive year of domestic same-store sales growth in 2023, a key metric indicating strong customer demand. 
  • With a market capitalization of approximately $10.47 billion, Wingstop stands as a formidable player in the market.
  • In fiscal year 2023, Wingstop achieved a 27.1% increase in system-wide sales, reaching around $3.5 billion. 
  • As of February 2024, Wingstop’s average unit volume (AUV) surpassed $1.8 million, with plans to elevate domestic restaurant AUVs beyond $2 million in the future.
  • With digital sales exceeding $2 billion in 2023, comprising 67% of total sales, Wingstop continues to innovate–forthcoming, the launch of MyWingstop, a proprietary technology platform, is scheduled for Q2 2024.
  • Market analysts remain bullish on Wingstop’s future, with a consensus one-year price target of $350.46, reflecting a 5.05% increase from previous estimates. 
  • Forecasts range from $237.35 to $446.25 per share, underscoring the optimism surrounding Wingstop’s continued growth trajectory.

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.

2. Restore Hyper Wellness + Cryotherapy (Based in Austin, TX)

Restore Hyper Wellness Locations in Texas

Quick Overview

  • Industry: Health & Wellness
  • Initial investment: $779,515 to $1,318,840
  • Net unit growth over past 3 years: 172
  • Total U.S. locations: 225
  • Franchise fee: $44,500
  • Royalty fee: 7%

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:

  • Restore expanded its retail footprint in 2022 (most recent year of performance reported), opening 67 new studios and ending the year with 186 locations in nearly 40 states, with $135 million in system-wide sales (65% year-over-year growth) and same-store sales growth of 16% year-over-year. 
  • On average, in 2022, a Restore Hyper Wellness franchise made $924,000 in revenue per year. The lowest gross revenue generated by a franchise was $154,000 (vs $458,500 in 2021) and the highest gross revenue was $2,314,000 (vs $1,605,000 in 2021).
  • The strategic partnership with Level 5 Capital in 2020 and with General Atlantic in 2021 infused growth capital, supporting Restore’s vision to open 500 locations by the close of 2024.
  • In terms of the market outlook for the wellness sector, experts predict a threefold increase in size by 2030. This growth is attributed to the rising significance of Gen Z, a demographic quickly becoming influential in the fitness and wellness landscape.

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. 

3. Fastest Labs (Based in San Antonio, TX)

Fastest Labs Locations in Texas

Quick Overview

  • Industry: Drug Testing
  • Initial investment: $101,150 to $132,700
  • Net unit growth over past 3 years: 87
  • Total U.S. locations: 138
  • Franchise fee: $59,500
  • Royalty fee: 7%

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:

  • The franchise’s systemwide gross revenue experienced a 56% year-over-year growth, reflecting its market traction and customer demand. 
  • Fastest Labs conducts an average of 207 tests per week, with an average ticket price of $57, a good sign of operational efficiency and revenue generation capabilities.
  • The global sales of the Drug Testing Market in 2022 were $6.3 billion, with the US Market alone reaching $1.5 billion. With a CAGR of 5.3% during the period 2023-2033, the market is projected to reach a valuation of $15.7 billion by 2033.
  • In April 2023 Fastest Labs was acquired by LP First Capital and Genesis Park, a partnership that is intended to provide the company with the resources to accelerate growth, expand its footprint, and enhance its overall offerings.
  • Fastest Labs offers a 10% discount off the initial franchise fee to veterans, acknowledging and honoring their service to the nation. 

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. 

4. Urban Air Adventure Parks (Headquartered in Bedford, TX)

Urban Air Trampoline and Adventure Park Locations in Texas

Quick Overview

  • Industry: Children’s Entertainment
  • Initial investment: $3,707,592 to $8,192,274
  • Net unit growth over past 3 years: 235
  • Total U.S. locations: 350
  • Franchise fee: $75,000
  • Royalty fee: 7%

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 brings in $440 million in revenue, with an average park volume of $3,338,708 and an average EBITDA of 26.3%.
  • The franchise has maintained zero SBA loan defaults.
  • The business has proven to be pandemic-proof, having opened 18 new locations in the first half of 2020. 
  • Urban Air is ranked No. 44. in Entepreneur magazine Top Brand for Multi-Unit Owners. Roughly 60% of Urban Air franchisees are multi-unit owners, with many of the operators coming from a strong retail, management, sales or marketing background.
  • In 2023, they were also ranked as No. 1 in the Adventure Parks/Entertainment Centers category, for the fifth consecutive year.

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.

5. D-Bat (Based in Carrollton, TX)

D-BAT Locations in Texas

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:

  • The average revenue of an individual D-Bat unit is approximately $795,916 per year.
  • Having been in business for over 25 years, D-Bat has a history of growth and success, with an estimated annual revenue of $31.7M.
  • D-Bat’s commitment to excellence is recognized by its inclusion on Entrepreneur magazine Franchise 500 list, ranking No. 223 in 2024. 
  • Veterans receive an incentive of $2,500 off of the franchise fee

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.

Considerations Before Starting a Franchise in Texas


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.

Franchisor Support

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.

Legal and Regulatory Requirements

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:

  • Familiarize yourself with the legal definitions and the basics of franchise law in Texas.
  • Texas requires a one-time Business Opportunity Exemption Notice filing and a $25 fee before offering or selling franchises. This regulation aims to protect both franchisors and franchisees, ensuring transparency and compliance with state laws.
  • Franchisors must provide a Franchise Disclosure Document (FDD) in compliance with federal law. While Texas does not have additional state franchise disclosure laws, adherence to the FTC Franchise Rule is essential for transparency and legal compliance.

Startup Costs and Financials

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.

Location and Demographics

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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