📊 Denver-Aurora-Lakewood, CO Market Demographics
Population
2,972,000
🟢 Census ACS 2023
Median Household Income
$81,500
🟢 ACS Table B19013
Median Age
37.1 yrs
🟢 ACS Table B01002
Unemployment Rate
3.5%
🟢 BLS LAUS
Homeownership Rate
60.2%
🟢 ACS Table B25003
📋 Market Analysis: Why Denver for Franchising?
Income & purchasing power. Denver's median household income of $81,500 is 8% above the national median of $75,149. Markets near the national income median support a broad range of franchise categories — neither constrained to budget concepts nor reliant on premium positioning.
Labor market conditions. The unemployment rate in Denver is 3.5%, 0.1pp below the national average of 3.6%. A labor market near the national average provides balanced conditions for franchise operations — neither constrained by labor shortages nor burdened by weak demand.
Homeownership & service demand. At 60.2%, homeownership in Denver is 5pp below the national rate of 65.2%. Homeownership near the national average supports moderate demand across both home services and consumer-facing franchise categories.
Top opportunity: Coffee & Beverages. With a Penetration Index of 53 (47% below the national average), Coffee & Beverages has the highest Opportunity Score of 87/100 in Denver. The market has an estimated 284 existing units versus 535 expected based on population — a gap of roughly 251 units that represents white-space opportunity for new entrants.
How Denver compares. Demographically similar metro areas include Baltimore, San Diego, Portland. Comparing franchise penetration across peer markets can reveal whether Denver's opportunity gaps are local (untapped demand) or structural (category fit for the region). Explore each peer market for side-by-side franchise category analysis.
#1
☕
Coffee & Beverages
Coffee shops, juice bars, tea houses, and specialty beverage franchises
87
Opportunity
Score
🟢 Census Verified
Penetration Index
53
47% below avg
Est. Units (Denver)
284
vs 535 expected
Avg Investment
$150,000–$500,000
typical range
47% below peer-market average — 284 estimated units vs 535 expected for a market of 3.0M (Source: FDD Item 20 estimates)
📊 Source: Unit counts from FDD disclosures + SBA franchise data
Full Analysis — All 10 Categories in Denver →
#2
💪
Fitness & Wellness
Gyms, boutique fitness studios, yoga, martial arts, and wellness centers
83
Opportunity
Score
🟢 Census Verified
Penetration Index
57
43% below avg
Est. Units (Denver)
205
vs 357 expected
Avg Investment
$200,000–$600,000
typical range
43% below peer-market average — 205 estimated units vs 357 expected for a market of 3.0M (Source: FDD Item 20 estimates)
📊 Source: Unit counts from IFA membership data + FDD Item 20
Full Analysis — All 10 Categories in Denver →
#3
🐾
Pet Services
Pet grooming, boarding, training, veterinary, and specialty pet care franchises
82
Opportunity
Score
🟢 Census Verified
Penetration Index
58
42% below avg
Est. Units (Denver)
120
vs 208 expected
Avg Investment
$120,000–$350,000
typical range
43% below peer-market average — 120 estimated units vs 208 expected for a market of 3.0M (Source: FDD Item 20 estimates)
📊 Source: Unit counts from APPA + FDD Item 20 disclosures
Full Analysis — All 10 Categories in Denver →
#4
🍔
Fast Food / QSR
Quick-service restaurants including burgers, pizza, sandwiches, and ethnic fast food
74
Opportunity
Score
🟢 Census Verified
Penetration Index
69
31% below avg
Est. Units (Denver)
820
vs 1,189 expected
Avg Investment
$250,000–$800,000
typical range
31% below peer-market average — 820 estimated units vs 1189 expected for a market of 3.0M (Source: FDD Item 20 estimates)
📊 Source: Unit counts from FDD Item 20 + Census business patterns
Full Analysis — All 10 Categories in Denver →
#5
🚗
Automotive Services
Oil change, auto repair, detailing, and specialty automotive service franchises
74
Opportunity
Score
🟢 Census Verified
Penetration Index
69
31% below avg
Est. Units (Denver)
164
vs 238 expected
Avg Investment
$180,000–$450,000
typical range
31% below peer-market average — 164 estimated units vs 238 expected for a market of 3.0M (Source: FDD Item 20 estimates)
📊 Source: Unit counts from Census business patterns (NAICS 8111)
Full Analysis — All 10 Categories in Denver →
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📈 Peer Market Comparison — Similar Metro Areas
| Metro Area | Population | Median HHI |
|---|
| 📍 Denver-Aurora-Lakewood, CO (this market) | 2,972,000 | $81,500 |
| Baltimore-Columbia-Towson, MD |
2,883,000 |
$83,900 |
| San Diego-Chula Vista-Carlsbad, CA |
3,338,000 |
$82,700 |
| Portland-Vancouver-Hillsboro, OR-WA |
2,512,000 |
$78,900 |
❓ Frequently Asked Questions
What are the best franchise categories to open in Denver?
Based on our data analysis, the top franchise categories in Denver by Opportunity Score are: 1. Coffee & Beverages (Score: 87/100), 2. Fitness & Wellness (Score: 83/100), 3. Pet Services (Score: 82/100), 4. Fast Food / QSR (Score: 74/100), 5. Automotive Services (Score: 74/100). These scores are based on population demographics from US Census ACS 2023 and franchise unit count estimates from FDD Item 20 disclosures.
How many people live in the Denver-Aurora-Lakewood, CO metro area?
According to the US Census American Community Survey 2023 5-year estimates, the Denver-Aurora-Lakewood, CO metropolitan statistical area has a population of 2,972,000.
What is the median household income in Denver?
The median household income in the Denver-Aurora-Lakewood, CO metro area is $81,500, according to US Census ACS 2023 estimates (ACS Table B19013).
How many Coffee & Beverages franchise units are in Denver?
Based on FDD Item 20 disclosures and Census business pattern data, Denver has an estimated 284 Coffee & Beverages franchise units, compared to 535 expected based on the metro's population. This gives a Penetration Index of 53 — indicating a potentially underserved market.
How does the Denver market compare to similar metro areas for franchising?
Denver has a population of 2,972,000 and median household income of $81,500, which is 8% above the national median. Comparable metro areas include Baltimore, San Diego, Portland. We recommend comparing opportunity scores across peer metros before selecting a territory, as penetration gaps vary significantly between demographically similar markets.
What factors should I consider before opening a franchise in Denver?
Key factors include: (1) local income levels — Denver's $81,500 median HHI determines which franchise price points the market supports, (2) category saturation — check the Penetration Index for your target category, (3) labor availability — the 3.5% unemployment rate affects staffing costs, and (4) real estate — homeownership at 60.2% influences both commercial lease availability and home services demand. Use our Territory Opportunity Finder for a complete category-by-category analysis.
📚 Data Sources & Methodology
This analysis is based on:
- US Census American Community Survey 2023 (5-year estimates)
- Franchise Disclosure Documents (FDD Item 20) through 2024
- International Franchise Association (IFA) market data
How Opportunity Scores are calculated: Scores combine franchise category penetration (estimated from FDD Item 20 data),
local income levels, unemployment, and regional market factors. A score of 80+ indicates strong underpenetration;
50–79 indicates moderate opportunity; below 50 indicates a saturated or challenging market.
What "estimated" means: Unit counts marked 🟡 are derived from FDD disclosures for major franchisors
and Census business pattern data. They are directional estimates, not precise counts. Verify through individual FDD Item 20 research.
Disclaimer: This analysis is for informational purposes only.
It does not constitute investment advice. Past market data does not guarantee future franchise performance.
Full methodology →
Last updated: April 1, 2026 · Data: US Census ACS 2023 · FDD through 2024
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