QSR’s 20 Best Franchise Deals for 2026
Ben ColeyThu, September 3, 2026 at 3:13 PM GMT+3 28 min read
This story was originally published on QSR. To receive daily news and insights, subscribe to our free daily QSR AM Jolt.
For many years, franchising rewarded momentum. A compelling concept, solid unit growth, and a polished sales presentation were often enough to attract development interest.
Not anymore.
As inflation, higher labor costs, tighter lending standards, and shifting regulations reshaped the operating environment over the past year, prospective franchisees have become far more selective about where they invest. Excitement still matters, but it no longer closes the deal on its own.
"The past year has really acted as a stress test, and not everyone passed," says Liane Caruso, owner of helloCMO and cofounder of Franchise Assembly. "The brands that held up were the ones with lean, simple operations and realistic unit economics built for normal conditions."
That sentiment echoed across QSR's 2026 Best Franchise Deals Council, a panel of franchise development, operations, marketing, legal, and investment experts assembled to help identify where the franchise industry is headed.
The consensus was consistent. Franchise buyers are asking tougher questions than they were just a few years ago. They want proof instead of promises. They want to know how a concept performed when costs increased, labor tightened, and financing became more difficult—not simply how it grew during years of favorable market conditions.
"A franchise that looks attractive on paper is selling a story. A strong franchise opportunity is selling proof," says Michelle Rowan, president of Franchise Business Review. Today's buyers, she says, are looking past projections to unit-level profitability, franchisee satisfaction, and candid validation from existing operators.
Jonathan Hill, cofounder of Morrow Hill, has watched the same shift unfold from the real estate side. Inflation and labor pressures have forced brands to simplify operations, improve efficiency, and demonstrate predictable financial performance.
"Clear, conservative financials and predictable cash flow are becoming table stakes," he says.
John Francis, whose franchise career spans more than three decades as a franchisee, franchisor, investor, and board member, believes prospective operators are also evaluating the strength of the organization behind the concept.
"Paper looks the same for almost every brand," he says. "What separates the real opportunities is operational discipline behind the curtain." He argues the strongest systems have evolved beyond founder-led businesses into organizations with the infrastructure, leadership, and processes necessary to support long-term expansion.
Those changing expectations explain why some brands continue signing development agreements while others struggle to fill their pipelines.
Council members repeatedly pointed to the same characteristics. Winning franchise systems demonstrate durable unit economics instead of relying on exceptional performers. They simplify operations, embrace technology that improves productivity, offer flexible development options, and provide meaningful support long after opening day. These successful chains are also attracting experienced multi-unit operators who are evaluating whether the underlying business is built to scale.
This year's Best Franchise Deals list represents more than high-performing brands. They showcase franchise systems that have earned confidence through transparency, operational discipline, and a proven ability to help franchisees succeed in a more demanding business environment.
Methodology:
QSR magazine's Best Franchise Deals for 2026 were selected from a nomination process that ran from mid-May to mid-June. Information and insight into the franchising industry was provided by the Best Franchise Deals Council.
For a fourth year, we recognized rising franchisors that are on the outside looking in and created a Hall-of-Fame for concepts that have graced the Best Franchise Deals list several times. (Hall-of-Fame brands are now allowed to keep appearing on future lists, but still not twice in a row).
This is the 16th Best Franchise Deals in QSR magazine's history. These brands are in no particular order.
The 2026 Best Franchise Deals Council:
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Graham Chapman, CEO, ZorForum
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Liane Caruso, owner, helloCMO, cofounder, Franchise Assembly
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Jonathan Hill, cofounder, Morrow Hill
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Michelle Rowan, president and COO, Franchise Business Review
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Mike Drumm, founder, Drumm Law
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John Francis, expert/speaker/advisor/coach/moderator, Johnny Franchise
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Elyse Lupin, president and founder, Elysium Marketing Group
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Shay Kleinschmidt, EVP of business development, Franfund
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Brian Schnell, partner, Faegre Drinker
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Theresa Huszka, president, BrightPath Growth Accelerator
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Dawn Abbamondi, CMO, SMB Franchising
BEST FRANCHISE DEALS
Cheba Hut
Number of U.S. franchise units: 82
Number of U.S. total units: 85
Total systemwide sales: $182,228,383
Franchise average unit volume: $2,330,000
Franchise fee: Three-store package for $130,000
Royalty: 5 percent
Renewal fee: 50 percent of the then-current initial franchise fee
Marketing fee: 2 percent
Total start-up costs: $631,150 to $2,086,100
The skinny:
Cheba Hut has built a franchise model around differentiated branding, strong unit economics, and disciplined growth. The cannabis-themed sandwich concept has established a distinct position in the fast-casual segment and emphasized franchisee profitability and measured expansion.
The brand reported average unit volumes of more than $2.33 million in 2025 and surpassed $182 million in systemwide sales. Cheba Hut grew 22.73 percent during the year, opening eight restaurants, with four additional locations already added this year.
Its counterculture-inspired identity is a key differentiator. Combined with a sandwich-focused menu and full bars in many locations, the concept offers an experience that stands apart from traditional fast-casual concepts.
Cheba Hut has also taken an unconventional approach to financing its growth. In 2025, the company completed a $36 million royalty financing agreement with Diversified Royalty Group, securing capital for expansion without selling equity. The structure allows the brand to pursue long-term development and maintain alignment with franchisees.
The chain plans to open approximately 20 restaurants annually and has a long-term goal of $3 million AUV.
Bojangles
Number of U.S. franchise units: 601
Number of U.S. total units: 882
Total systemwide sales: $1,947,896,352
Franchise average unit volume: $2,1,56,135
Franchise fee: $35,000
Royalty: 4 percent
Renewal fee: 50 percent of the then-current initial franchise fee
Marketing fee: 4 percent
Total start-up costs: $2,851,880 to $3,951,200
Franchisee incentives: Minority, Women & Veterans Program, $300,000 Equipment Reimbursement Incentive Program for Multi-Unit Development Agreement, and Non-Traditional Equipment Incentive Program
The skinny:
Bojangles occupies a distinctive position in the industry by combining strength in chicken and breakfast. The chain has built its business around both for nearly five decades.
Breakfast is a meaningful contributor to the brand's performance, accounting for roughly 30 percent of sales before 11 a.m. That established morning business complements lunch and dinner traffic, giving franchisees a diversified sales mix across multiple dayparts.
Bojangles continues to see substantial whitespace for expansion across existing and new markets, supported by Southern-inspired flavors, hand-breaded chicken, scratch-made biscuits, and other signature offerings. The company also has a significant corporate presence, operating approximately 31 percent of its restaurants.
Lee's Famous Recipe Chicken
Number of U.S. franchise units: 93
Number of U.S. total units: 126
Total systemwide sales: $229,000,000
Franchise average unit volume: $1,680,000
Franchise fee: $35,000
Royalty: 5 percent of gross sales
Renewal fee: Then-current franchise fee being charged by us for new franchises.
Marketing fee: 3 percent Brand Cooperative Advertising Fund Fee, plus required local advertising expenditures of up to 1 percent of gross sales and participation in regional advertising cooperatives if applicable.
Total start-up costs: Approximately $517,200 to $2,353,900, depending on restaurant format and market.
The skinny:
Lee's Famous Recipe Chicken has spent more than 60 years building its business around a focused menu, operational simplicity, and a loyal customer base. The brand offers franchisees a proven operating model supported by multiple restaurant formats that provide flexibility across a range of markets and development opportunities.
Its emphasis on quality food, efficient operations, and a drive-thru-oriented business has led to strong average unit volumes across the system. Franchisees also receive ongoing support from an experienced leadership team as the brand continues to expand.
Huey Magoo's
Number of U.S. franchise units: 90
Number of U.S. total units: 92
Total systemwide sales: $155,188,975
Franchise average unit volume: $2,045,100
Franchise fee: $35,000
Royalty: 5 percent
Renewal fee: 50 percent of then-current franchise fee at the time of renewal.
Marketing fee: 2 percent
Total start-up costs: $841,600 to $1,786,000 for an inline restaurant, $1,111,600 to $2,893,500 for a drive-thru/pick-up restaurant, and $810,600 to $1,571,700 for an express restaurant.
Franchisee incentives: For new development agreements of three or more restaurants, for restaurants that open at least 30 days prior to the development schedule and before December 31, 2028, we offer a reduced royalty of 4 percent and a reduced franchise fee.
The skinny:
Huey Magoo's is a growing player in the quick-service chicken segment because of its focused menu and development model that can accommodate a variety of trade areas. Marketed as "The Filet Mignon of Chicken," the concept has carved out a notable identity within one of the industry's fastest-growing categories.
The franchise platform emphasizes flexibility in development. Operators can choose from inline, end-cap, drive-thru, conversion, and nontraditional formats. The brand has also introduced a smaller drive-thru design intended to increase site availability and support faster timelines.
Additionally, Huey Magoo's has invested in infrastructure to support franchise growth. The company provides assistance across operations, training, real estate, construction, marketing, supply chain, information technology, and menu innovation.
Vitality Bowls
Number of U.S. franchise units: 69
Number of U.S. total units: 73
Total systemwide sales: $39,471,264
Franchise average unit volume: $561,266
Franchise fee: $40,000
Royalty: 6 percent
Renewal fee: $10,000 (10 years)
Marketing fee: 2 percent
Total start-up costs:
The skinny: $250,000 to $600,000
Vitality Bowls has attracted franchisees by positioning itself squarely within the growing health and wellness category and offers a menu based on nutrient-dense, allergy-conscious products. The chain is focused on ingredient transparency and features a range of açaí bowls, smoothies, fresh juices, and other items made with premium ingredients and organic superfoods.
The franchise model is meant to provide multiple avenues for revenue throughout the day, with breakfast, lunch, snacks, smoothies, catering, and digital ordering contributing to sales opportunities.
Franchisees are supported through a structured system that includes training, marketing assistance, and ongoing operational guidance. The company also offers incentives for multi-unit development.
Chicken Salad Chick
Number of U.S. franchise units: 263
Number of U.S. total units: 338
Total systemwide sales: $457,974,167
Franchise average unit volume: $1,483,045
Franchise fee: $50,000
Royalty: 5 percent of gross sales
Renewal fee: $5,000
Marketing fee: $10,000 for grand opening
Total start-up costs: $777,000 to $998,500; $802,000 to $1,033,500
The skinny:
Chicken Salad Chick has built a well-known identity by focusing on a category few competitors occupy. As a concept based on fresh, made-from-scratch chicken salad, the brand offers a specialized menu combined with an operating model that eliminates the need for fryers or ventilation systems.
The business also benefits from a diversified mix of sales channels. In addition to dine-in service, franchisees can generate revenue through drive-thru, takeout, catering, and third-party delivery. The company has continued investing in its digital capabilities through technology upgrades that include NCR Aloha Cloud POS, an updated website and mobile app, and a loyalty program designed to strengthen guest engagement and encourage repeat visits.
The company provides assistance with site selection, construction, training, marketing, and ongoing business consulting. Operators also receive community marketing guidance to help build local awareness through catering and neighborhood events.
Chicken Salad Chick has cultivated an active franchise community that encourages collaboration among owners. Regular systemwide meetings provide opportunities to exchange best practices and share operational insights.
Hawaiian Bros
Number of U.S. franchise units: 48
Number of U.S. total units: 72
Total systemwide sales: $149,200,000
Franchise average unit volume: $2,400,000
Franchise fee: $50,000
Royalty: 5 to 6 percent of gross sales
Renewal fee: $25,000
Marketing fee: 3 percent of gross sales
Total start-up costs: $1,402,536 to $4,163,150
Franchisee incentives: 5 percent royalty fees for first five years for development agreements signed before April 2027.
The skinny:
Speed and simplicity have become defining traits of many fast casuals, but Hawaiian Bros has taken that philosophy a step further. By eliminating freezers, fryers, and microwaves, the concept has built its operating model around fresh preparation, streamlined execution, and a menu with fewer than 100 SKUs.
That efficiency supports a menu centered on Hawaiian-inspired comfort food, including marinated grilled proteins, steamed rice, macaroni salad, and Dole Soft Serve. The approach has resonated with consumers, helping the brand grow to more than 750,000 loyalty members while earning an average guest rating of 4.8 stars. Menu additions such as bowls, sliders, and seasonal beverages continue to broaden appeal without adding significant operational complexity.
Hawaiian Bros offers multiple restaurant formats—including drive-thru, end-cap, inline, and second-generation conversions—giving franchisees flexibility as they evaluate different trade areas. Strong financial performance has also helped fuel expansion, with systemwide average unit volumes of approximately $2.5 million and top-performing restaurants exceeding $3.5 million.
Since launching franchising in 2023, Hawaiian Bros has signed agreements with experienced multi-unit operators to develop nearly 300 restaurants across more than 60 markets.
Smalls Sliders
Number of U.S. franchise units: 54
Number of U.S. total units: 54
Total systemwide sales: $60,800,000
Franchise average unit volume: $2,100,000
Franchise fee: $35,000
Royalty: 6 percent of weekly gross sales
Renewal fee: 20 percent of the then-current franchise fee of $35,000
Marketing fee: 3 percent of weekly gross sales
Total start-up costs: $1,408,948 to $2,137,427
The skinny:
Smalls Sliders has continued expanding beyond its Southeastern roots, entering markets across the Midwest and Western U.S. In doing so, it signed development agreements with experienced franchise operators looking to grow alongside the brand.
The chain features a "Can" restaurant design, which comes with a compact footprint and a streamlined operating model intended to simplify development and day-to-day execution. The concept has also kept guest interest through limited-time menu offerings, including the BBQ Bacon Jalapeño Slider and Loaded Fries, without adding complexity.
Expansion has been driven in part by interest from seasoned multi-unit and multi-brand franchisees, many of whom view the concept's efficient format and scalable model as attractive attributes for future development.
Teriyaki Madness
Number of U.S. franchise units: 208
Number of U.S. total units: 210
Total systemwide sales: $190,286,143
Franchise average unit volume: $1,113,760
Franchise fee: $45,000 for one unit; $99,000 for three units
Royalty: 6 percent
Renewal fee: $5,000
Marketing fee: 4 percent
Total start-up costs: $392,667 to $1,121,405
Franchisee incentives: 15 percent off initial franchise fee with proof of applicable hospitality management or ownership experience, which typically applies to those coming from the following industries: restaurants, retail, convenience stores and hotels.
The skinny:
Teriyaki Madness' menu of made-to-order Asian-inspired bowls offers customization across a range of dietary preferences. It also offers a business model developed with off-premises dining in mind that has helped drive strong digital and delivery sales. Today, approximately 80 percent of system revenue comes from pickup, delivery, curbside, and catering.
Teriyaki Madness generated $191 million in systemwide sales in 2025, opened 47 restaurants, surpassed 200 locations at the start of 2026, and reported a 28 percent year-over-year increase in systemwide sales during the first quarter. International expansion has also begun with the brand's first location in El Salvador.
Franchisees receive support through classroom instruction, in-store training, opening assistance, operational coaching, and ongoing education. The concept has also attracted experienced multi-unit operators from several established restaurant systems, while existing franchisees continue to expand within the brand.
Taco John's
Number of U.S. franchise units: 316
Number of U.S. total units: 327
Total systemwide sales: $391,393,000
Franchise average unit volume: $1,173,000
Franchise fee: $40,000
Royalty: 5 percent of net sales
Renewal fee: $10,000
Marketing fee: 4 percent of net sales for traditional restaurants and 2 percent of net sales for nontraditional restaurants.
Total start-up costs: The total investment necessary to begin operation of a Taco John's franchise varies depending upon the size and seating capacity of the Taco John's restaurant. The total investment for a freestanding traditional restaurant ranges from $811,400 to $2,034,250, for an endcap traditional restaurant ranges from $802,310 to $1,418,750, and for a drive-thru focused freestanding restaurant ranges from $1,066,100 to $2,010,750. This includes $40,000 that must be paid to us. For a nontraditional restaurant, the total investment ranges from $454,175 to $843,000. This includes $15,000 that must be paid to us.
Franchisee incentives: Selective incentives available for multi-unit development which include reduced Initial Franchise Fee (IFF) as well as reduced royalties.
The skinny:
Taco John's "West-Mex" positioning, loyal customer base, and menu spanning five dayparts—including catering opportunities—create multiple areas for franchisees to generate sales throughout the day.
The concept also offers flexibility in development, with freestanding, endcap, and nontraditional restaurant formats that allow operators to tailor growth strategies to local markets. Taco John's continues to build on its strong presence in the Upper Midwest while targeting expansion in adjacent, high-potential territories. Financially, the brand reports average unit volumes of nearly $1.9 million among its top-performing freestanding drive-thru restaurants.
To support franchisees, Taco John's has invested in technology that includes a cloud-based point-of-sale system, AI-powered tools, self-order kiosks, and alternative ordering platforms aimed at improving efficiency and enhancing the guest experience. The company also provides comprehensive support throughout development and operations, with resources spanning real estate, construction, training, marketing, and ongoing business guidance.
Smoothie King
Number of U.S. franchise units: 1,200
Number of U.S. total units: 1,242
Total systemwide sales: $760,395,529
Franchise average unit volume: $662,015
Franchise fee: $30,000
Royalty: 6 percent
Renewal fee: Half of the current initial Franchise Fee and $775 renewal upgrade design fee (non-refundable)
Marketing fee: 3 percent
Total start-up costs: Endcap or inline: $329,850 to $683,715; Freestanding: $639,950 to $1,278,900
Franchisee incentives: Veterans Incentive: 20 percent off franchise fee + $500 credit toward opening inventory order. First Responders Incentive: 20 percent off franchise fee + $500 credit towards opening inventory order. Pioneer Market Incentives: Smoothie King offers targeted incentives spanning select pioneer markets (AR, AZ, CO, IL, MA, MI, MN, NM, OK, PA, UT, VA, WI).
The skinny:
Smoothie King has secured more than 200 new store commitments and identified over 1,500 trade areas for future development, and has continued to invest in menu innovation to broaden its appeal.
Food has become an important part of that strategy. The introduction of flatbreads, alongside continued expansion of high-protein smoothie offerings, has created additional sales opportunities. To support the initiative, Smoothie King installed ovens across its system at no equipment cost to existing franchisees.
Franchisees also benefit from a simplified operating model designed to promote consistency and ease of execution.
Zaxbys
Number of U.S. franchise units: 865
Number of U.S. total units: 1,005
Total systemwide sales: $2,763,000,000
Franchise average unit volume: $2,847,345
Franchise fee: $35,000
Royalty: 6 percent
Renewal fee: 50 percent of the current franchise fee
Marketing fee: 3 to 4 percent
Total start-up costs: $1,460,000 to $3,810,500
Franchisee incentives: 20 percent off franchise fee for veterans
The skinny:
Few restaurant categories have generated as much franchise interest in recent years as chicken, and Zaxbys has continued to capitalize on that momentum through steady geographic expansion and sustained unit performance. After surpassing 1,000 restaurants, the brand has extended its footprint well beyond the Southeast, entering new markets across the Midwest, Northeast, and West, including Nevada, Arizona, Illinois, Pennsylvania, New Jersey, and Maryland.
The expansion strategy is supported by a range of restaurant formats, from traditional dine-in locations to drive-thru-focused and smaller-footprint prototypes, giving franchisees flexibility to pursue development opportunities across diverse trade areas. Zaxbys has also continued investing in digital capabilities, updated branding, and localized marketing campaigns to build awareness as it enters new regions.
The brand's business fundamentals have also attracted experienced franchise operators. With average unit volumes approaching $3 million and more than 270 franchise commitments extending through 2030, Zaxbys continues to strengthen its development pipeline. Recent partnerships with accomplished multi-unit operators—including a franchise group featuring former NBA players Carlos and Charles Boozer—prove there's growing interest in the concept.
Tropical Smoothie Cafe
Number of U.S. franchise units: 1,650
Number of U.S. total units: 1,651
Total systemwide sales: $1,512,851,000
Franchise average unit volume: $978,298
Franchise fee: $35,000 first agreement; $25,000 subsequent agreements; $17,500 military veterans
Royalty: 6 percent of sales
Renewal fee: $0
Marketing fee: 5 percent of sales
Total start-up costs: $275,500 to $770,500 (average is $514,000)
The skinny:
More than 1,700 locations and a high rate of reinvestment from existing operators have made Tropical Smoothie Cafe one of the industry's most closely watched franchise systems. The brand's continued expansion reflects confidence from franchisees already in the system, many of whom have chosen to grow their portfolios with additional cafés.
Flexible development options—including traditional, drive-thru, and nontraditional formats—allow operators to pursue opportunities across multiple markets. Along the way, the company provides resources including site selection, construction, training, marketing, technology, and ongoing operational guidance.
Tropical Smoothie Cafe offers smoothies alongside wraps, sandwiches, bowls, and other fresh menu items, creating traffic across multiple dayparts rather than relying primarily on beverage sales. That menu diversity, together with a straightforward operating model and strong national brand awareness, has helped fuel continued expansion.
Firehouse Subs
Number of U.S. franchise units: 1,249
Number of U.S. total units: 1,291
Total systemwide sales: $1,337,000,000
Franchise average unit volume: $1,035,521
Franchise fee: $20,000
Royalty: Franchisees pay a 6 percent royalty fee on gross sales
Renewal fee: Fifty percent of the then-current initial franchise fee
Marketing fee: 5 percent contribution of national and local marketing funds
Total start-up costs: Inline traditional restaurants: $405,350 to 875,950; inline endcaps with drive-thru: $528,159 to $1,087,050; freestanding restaurants with drive-thru: $767,950 to $1,577,750
Franchisee incentives:
Grow A-Gain Incentive: If we determine that you (1) should receive a grade of "A" using the then current operational metrics utilized by us to evaluate Firehouse Subs franchisees, (2) have been a Firehouse franchisee for longer than five years, (3) have not opened a Firehouse restaurant in at least the previous 5 years, and (4) you agree in your development agreement to open at least two Firehouse during the years 2026, 2027 and 2028, you may qualify for the amount of your 2026-2028 DIP Contribution under the 2026-2028 DIP development agreement to be increased to $150,000 per restaurant, provided that you may not also receive any other 2026-2028 DIP Contribution or a Bonus DIP Contribution.
10 in 2 Incentive: If you agree in your development agreement to open at least 10 Firehouse restaurants during the years 2027 and 2028, you may qualify for the amount of your 2026-2028 DIP Contribution under the 2026-2028 DIP development agreement to be increased to $100,000 per restaurant, and you may also receive an additional single contribution in the amount of $500,000 ("Tenth Restaurant Contribution") if you open at least 10 restaurants under your development agreement all after January 1, 2027 and before December 312028, provided that you may not also receive any other 2026-2028 DIP Contribution or a Bonus DIP Contribution. The Tenth Restaurant Contribution will not be payable if the 10th restaurant opened under the development agreement opens at any time after December 31, 2028.
Accelerated Market Incentive: If you agree in your development agreement to open at least three Firehouse restaurants within one of our accelerated markets, consisting of New York, NY; Boston, MA; Chicago, IL; Los Angeles, CA; Philadelphia, PA; Seattle, WA; Washington, D.C.; Minneapolis, MN' San Diego, CA; Detroit, MI; Indianapolis, IN; and Providence, RI market areas (with the boundaries of the market areas determined by us in our sole discretion), then you may qualify for the amount of the 2026-2028 DIP Contribution for such restaurant under your 2026-2028 DIP DA to be increased to $150,000 for such restaurant, provided that you may not also receive any other 2026-2028 DIP Contribution or a Bonus DIP Contribution. These restaurants will also qualify for a reduced royalty rate (See Item 6 for more information.)
Single-Store: $75,000 cash for opening a single new location.
Multi-Store: $100,000 cash per restaurant for operators who develop two or more new locations.
Veterans & First Responders: An exclusive program offering qualified franchisees $100,000 per unit, aligning with the brand's firefighter origins and history of working with first responders.
Captain D's
Number of U.S. franchise units: 229
Number of U.S. total units: 514
Total systemwide sales: $541,000,000
Franchise average unit volume: $1,082,533
Franchise fee: $60,000 to $69,100
Royalty: 4.5 percent of gross sales
Renewal fee: $8,750
Marketing fee: 2 percent to 2.5 percent of gross sales
Total start-up costs: $1,435,000 to $1,862,000; $1,325,000 to $1,638,000; $752,000 to $1,185,000; $662,000 to 1,040,000
The skinny:
Captain D's is the country's largest fast-casual seafood franchise. Its seafood-focused menu offers an alternative to more crowded burger, chicken, and pizza segments and appeals to consumers seeking greater variety.
Restaurant designs accommodate a range of development opportunities, including flexible footprints and conversion projects that can reduce build-out time and accelerate market entry. Drive-thru enhancements and a menu engineered for consistent execution further support day-to-day operations.
Owners receive guidance throughout the development process, from real estate evaluation and restaurant opening to ongoing training, marketing initiatives, and operational consulting.
Hungry Howie's
Number of U.S. franchise units: 460
Number of U.S. total units: 494
Total systemwide sales: $413,380,000
Franchise average unit volume: $806,221
Franchise fee: $25,000
Royalty: 5.5 percent
Renewal fee: $1,000
Marketing fee: 7 percent
Total start-up costs: $238,982 to $697,322
Franchisee incentives: 50 percent off franchise fee for qualifying owner/operator veterans
The skinny:
Hungry Howie's has grown to nearly 500 restaurants across 18 states and kept a family-owned structure and franchise system focused on long-term operator success.
Menu innovation remains a hallmark of the brand. Flavored Crust pizzas, rotating limited-time offers, Secret Menu selections, and products such as Howie Bread give franchisees new ways to engage customers without straying from the concept's core identity. The carryout- and delivery-focused model also keeps restaurant footprints relatively compact, helping lower development costs and streamline operations.
Owners receive assistance throughout the franchise lifecycle, including site selection, training, operational consulting, and continuing education. Protected territories provide room for future expansion, making the concept appealing to both first-time franchisees and experienced multi-unit operators looking to grow.
Through local partnerships and its Love, Hope & Pizza campaign, Hungry Howie's and its franchisees have raised more than $5 million for the National Breast Cancer Foundation since 2009.
Freddy's
Number of U.S. franchise units: 580
Number of U.S. total units: 542
Total systemwide sales: $1,040,235,000
Franchise average unit volume: $1,859,481
Franchise fee: $35,000
Royalty: 5 percent of gross receipts
Renewal fee: One-third of the then-current franchise fee
Marketing fee: 2.5 percent of gross receipts
Total start-up costs: $854,834 to $2,802,000
Franchisee incentives:
The skinny:
Franchise development has remained a priority for Freddy's, with the brand continuing to attract investment from both new owners and existing operators. In 2025 alone, the company signed 22 multi-unit development agreements representing 118 future restaurants across the U.S. and Canada.
Expansion opportunities extend well beyond the brand's traditional freestanding restaurants. End-cap, inline, and nontraditional formats—including airports, sports venues, and other high-traffic destinations—give franchisees additional options when evaluating new markets and real estate opportunities. Those formats also create more accessible investment pathways and expand the brand's reach.
Handel's
Number of U.S. franchise units: 178
Number of U.S. total units: 185
Total systemwide sales: $176,103,241
Franchise average unit volume: $1,115,650
Franchise fee: $50,000
Royalty: 6 percent
Renewal fee: $15,000
Marketing fee: 1 percent
Total start-up costs: $404,500 to $1,043,700
The skinny:
After more than 80 years in business, Handel's Ice Cream continues to post the kind of growth that attracts franchise interest. The brand has recorded more than a decade of consecutive average unit volume increases and ranks among the top performers in the ice cream segment.
Expansion remains a key focus, with substantial territory still available in markets across the country. Existing operators have played a significant role in that growth, accounting for roughly 60 percent of new development through additional restaurant commitments. Strong financial performance, broad consumer appeal, and continued reinvestment from franchisees have positioned Handel's for sustained expansion in the years ahead. Approximately 60 percent of the company's growth comes from current franchisees reinvesting and opening additional locations.
Wienerschnitzel
Number of U.S. franchise units: 232
Number of U.S. total units: 317
Total systemwide sales: $343,854,816
Franchise average unit volume: $1,098,238
Franchise fee: $40,000
Royalty: 5 percent of net sales
Renewal fee: $2,000 for each year of the renewal term
Marketing fee: 3 percent of net sales
Total start-up costs: $561,000 to $2,645,500
Franchisee incentives: The service fee (see Franchise Disclosure Document, Item 6; Ex. B (franchise agreement), Section 6) shall be temporarily reduced for the first three stores, and only the first three stores, in that new market to:
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1 percent of net sales in the first year of the franchise agreement;
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2 percent of net sales in the second year of the franchise agreement.
After the second year of the franchise agreement, the service fee shall revert to the service fee provided in the franchise agreement (i.e., 5 percent of net sales). Franchisee's failure to open each store according to the mutually agreed upon schedule shall result in ineligibility for the reduced service fee incentive for all stores subject to this limited time incentive, including those that may have been paying a reduced service fee. (2) Franchisor and/or its affiliates will commit to spend at least $20,000 for local store marketing related to the opening of your first store in the new market.
The skinny:
Wienerschnitzel has structured its franchise program to lower the cost of expansion and give operators flexibility in how they grow. In addition to traditional restaurants, the brand offers development opportunities in convenience stores, travel centers, food courts, casinos, and retail locations. Those nontraditional formats carry reduced franchise fees, creating a lower-cost entry point for prospective owners.
The company also offers incentives for multi-unit development, reducing franchise fees for additional locations as franchisees expand their portfolios. An estimated initial investment starting at approximately $561,000, along with opportunities to convert existing buildings or develop smaller-footprint restaurants, provides operators with multiple paths to ownership.
Shipley Do-Nuts
Number of U.S. franchise units: 380
Number of U.S. total units: 392
Total systemwide sales: $345,200,00
Franchise average unit volume: $933,000
Franchise fee: $40,000
Royalty: 5 percent
Renewal fee: 25 percent of Shipley's then-current initial franchise fee
Marketing fee: 3 percent (1 percent regional co-op; 2 percent local spend)
Total start-up costs: $516,512 to $855,147
The skinny:
Shipley Do-Nuts has entered a new phase of expansion, building on nearly 90 years of brand recognition with accelerated franchise growth and investments aimed at supporting long-term development. The company opened a record 35 restaurants in 2025, followed by four additional openings in the first quarter of 2026, and is on pace to surpass 400 locations this year.
Growth is supported by multiple restaurant formats, relatively accessible startup costs, and a development process designed to move franchisees from site selection to opening in less than a year. Average unit volumes of approximately $1.2 million and strong top-tier profitability have also helped attract franchise interest.
Shipley has also continued modernizing the business through AI-powered online ordering, an expanded beverage program, and a new catering platform intended to drive incremental sales.
The post QSR's 20 Best Franchise Deals for 2026 appeared first on QSR Magazine.
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