Best Franchises in Chicago

Chicago is one of the top U.S. franchise expansion markets, offering consistent business opportunities for new entrepreneurs and franchise owners. It is home to over 2.7 million people and has a thriving metropolitan economy. It also has a robust labor force, diverse consumer demographics, and demand in almost every industry.

However, success in Chicago will require identifying the right opportunities. To help you focus your efforts, this blog will highlight the top franchises in Chicago for 2025, organized by industry and supported by local demand and gap data.

Food and Beverage Franchises

Chicago is famous for its diverse food culture, which includes nearly every type of cuisine. Limited-service restaurants are still in high demand, particularly those that cater to on-the-go customers and provide unique dining experiences. We have listed our top picks below.

1. Fatburger

Fatburger is a well-known fast-casual burger franchise popular across almost every major U.S. metropolitan area. It offers flexible formats including dine-in, drive-thru, kiosk, and food courts. Initial investment costs range from $509,000 to $1.7 million; this includes an initial $50,000 franchise fee and 6% royalty fees. Average unit volume is about $1.08 million annually. Franchisees receive extensive support, including help with site selection and access to streamlined supply chain systems.

2. Nothing Bundt Cakes

Nothing Bundt Cakes is a franchise that sells bundt cakes and baked goods. This franchise has more than 660 locations, an AUV of $1.355 million, and startup costs ranging from $667 K to $907 K. It has 20–25% operating profit margin, 6% royalties, 5% ad fees, and a strong gifting appeal in the Chicago area, particularly in dense retail corridors.

Home Services Franchises

In a city like Chicago, where old homes sit alongside high-rise condos, year-round upkeep is simply a part of life. Many homeowners turn to familiar, dependable service providers to handle everything from seasonal cleanups to everyday repairs.

1. The Patch Boys

The Patch Boys specialize in repairing drywall. The initial expenses include an 8% royalty and a $29,500 franchise fee. Startup costs range from $60,526 to $91,926. With an operating profit of roughly 15%, the average unit generates about $241,000 a year.

2. Window Genie

The Window Genie provides window cleaning, pressure washing, and seasonal lighting services. This franchise is ideal for suburban Chicago areas such as Oak Park and Evanston. Franchise costs range from $125,600 to $300,000, which includes a $40 to $47.5K franchise fee, 7% royalties, and 2% marketing fees. Owners can benefit from year-round recurring revenue, marketing support from the franchisor, and comprehensive training.

Retail and Specialty Franchises

The retail landscape is constantly expanding and changing. Specialty and experiential retail are growing, but gaps in key segments such as toys, hobbies, and home decor remain large. According to local data, hobby/toy/game stores have a $604 million retail gap greater than sales in this location; The gap was met through online sales and in-store sales in other locations. Gift and furniture/home goods stores have significant unmet demand.

1. Learning Express Toys

This national specialty toy franchise earns an average of $1.04 million in revenue AUV per unit and a 15% operating profit. The initial investment ranges from $178 to $374 thousand, with a $35,000 franchise fee. Franchisees receive extensive training and strong store-level engagement through in-store events.

2. The Local Vault

This luxury consignment platform sells designer furniture and décor. It caters to upscale clients looking for curated, pre-owned home furnishings. While the Local Vault’s physical platforms closed in 2023, its designer-focused, full-service consignment models are a valuable blueprint for upscale Chicago neighborhoods looking for sustainable, high-end home furnishings.

Automotive Franchises

Drivers across the Chicago area continue to rely on automotive services, yet supply hasn’t kept pace. Local spending data shows a significant shortfall, with nearly $210 million in auto parts and $197 million in tire sales, pointing to a strong opportunity for new operators.

1. Christian Brothers Automotive

Christian Brothers Automotive is known for its faith-based approach and strong emphasis on honesty and trust. The brand has steadily expanded throughout the northern suburbs of Chicago. Startup costs typically fall between $458,950 and $555,350, and the franchise offers flexible shop formats to accommodate a range of services. In 2024, the average sales for their 280 stores were $2.78 million, with only six stores generating less than $1.5 million in sales.

The company places a strong focus on supporting franchisees and encouraging long-term success. This is one of the reasons why Christian Brothers has seen recent growth, with 22 new franchised outlets being opened in 2024.

2. Big O Tires

Big O Tires is a leading tire and auto service franchise with over 460 locations in North America. The AUV generates approximately $2.6 million in annual revenue, with significant operating profits and increasing sales. In 2023, the average store sales exceeded $2.7 million. The initial investment costs range between $376,000 and $1.57 million, including franchise fees of $10,000 to $17,500, royalties of 5%, and a 5% contribution to the advertising fund. The franchisor also offers comprehensive training programs.

Education and Tutoring Franchises

Chicago is home to some of the top public and private schools in the Midwest, and parents in the area are highly engaged in their children’s education. Demographic trends show strong demand for math support, STEM enrichment, and early childhood learning programs.

1. Sylvan Learning

Sylvan Learning is a well-established tutoring brand with more than 40 years of experience and a network of over 700 locations. It offers a full range of academic services, including math, reading, writing, test prep, and tech-based learning. Average revenue per location is approximately $399,000, and startup costs range between $107,900 and $239,000.

2. Engineering for Kids

Engineering for Kids offers project-based STEM programming in after-school classes, camps, and enrichment programs. They operate over 95 locations worldwide and provide an appealing model for Chicago’s urban and suburban markets. Startup costs are relatively low, ranging between $28,000 and $140,000 depending on format. Franchisees will benefit from comprehensive training programs, provided equipment, and flexible curriculum options.

Health, Beauty, and Wellness Franchises

Chicagoans value wellness and convenience, and beauty franchises with flexible membership models are rapidly expanding in the city and suburbs. The city also has a strong demand for niche wellness services (massage, recovery, and waxing) with high client retention.

1. Scissors & Scotch

Scissors & Scotch provides a modern men’s grooming experience that combines traditional barber services with sip-and-stay cocktails in a relaxing lounge setting. With an AUV of nearly $970,000, startup costs ranging from $631,000 to $845,000, including a $50,000 franchise fee, and ongoing royalties of 4 to 6.5%, this franchise model promises future profitability while also appealing to high-end customers. The brand assists franchisees with site selection and comprehensive training.

2. Perspire Sauna Studio

This franchise model focuses on offering membership-based infrared sauna therapy, red light therapy, and other related services. The initial investment ranges from $435,000 to $882,000, with a $45,000 franchise fee, additional royalties, and fund contributions. This franchise also generates an AUV of approximately $569,000. It provides 46 hours of classroom training and on-site support.

Still on the Fence? Contact Franchise.com Today

Chicago offers numerous and lucrative opportunities for entrepreneurs who choose the right franchise model, industry, and location. With retail gaps exceeding half a billion dollars in some categories, the time to enter the Chicago market could definitely be now.

If you still have questions about the best franchises in Chicago or would like to know more about the franchises mentioned above,
contact us today! We have years of experience guiding investors towards the best franchise opportunities that meet their unique needs.

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