Franchise Statistics (23 Fun Facts, Trends + Statistics)
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Would you like to learn more about restaurant franchising, including some of the best facts and trends about franchising?
Well, I’m going to tell you the 23 best franchise stats below, so read on to find out what I found while researching this topic!
2022 Franchise Statistics
There are more than 700,000 franchise stores in the U.S. alone, as of [currenetyear]. About 300 companies start franchising every year, accounting for 3% of the country’s GDP (gross domestic product). In terms of ownership, more than 50% of franchise owners have at least a bachelor’s degree.
Do you want to learn more about the franchise or have more questions to answer? If so, read on as I dive into the full list and more!
1. 300 companies start franchising every year
An interesting franchising statistic is that around 300 companies start franchising each year, which is surprising, and this trend is likely to continue for years.
However, in the long run, only a fraction of these 300 companies will succeed by owning and operating franchises.
2. There are more than 750,000 franchise stores in the U.S.
Insanely, there are over 750,000 franchise stores in the US, which is an incredible number.
3. Franchising employs over 8 million Americans
Franchising employs approximately 8 million Americans, 50% of which are employed by fast food or food service businesses.
4. About 3% of GDP comes from franchising
Franchising is vital to the U.S. economy, as shown by the fact that about 3% of GDP comes from franchising.
Also, this number is likely to grow in the coming years as more and more businesses try to start franchising and experiment with this type of business model.
5. 62% of franchise owners have a bachelor’s degree or higher
Franchise owners are typically highly educated and have business knowledge, so it makes sense that 62% of franchise owners have a bachelor’s degree or higher.
6. Fast food, travel, real estate and home services are the largest franchise categories in 2021
The largest franchise categories in 2021 include the fast food business that dominates the market, but home services, travel and real estate are also popular franchise categories.
7. 10.5% of businesses are U.S. franchises
A cool trend is that 10.5% of all businesses in the US are franchises, with limited service restaurants making up the majority of these franchises.
In addition, car dealerships, gas stations, and convenience stores also account for a large portion of these businesses.
8. 65% of franchise owners are male
It’s no surprise that men are the primary owners of franchises, with more than 65% of franchises owned or operated by men.
9. Female franchisees have grown 38% in 10 years
While men make up the majority of franchise owners, women are also stepping up to take on the franchise owner role.
For example, franchise ownership by women has increased by 38% over the past decade, and this trend is expected to continue in the years to come.
10. The godfather of the franchise model is Isaac M. Singer
The modern franchise model was created by Isaac M. Singer, who lived in the United States around the 1850s and wanted to improve sewing machines.
Also, while he was technically capable, he didn’t have the logistics and funds to fulfill his dream and started charging sellers licensing fees.
So this was the first modern franchise, and in 1851 the Singer Company was founded and started producing sewing machines for customers, which are still in operation today.
11. Veterans make up 14% of franchise owners
Did you know that veterans make up about 14% of all franchise owners in the United States? In 2017, veterans owned more than 66.000 franchises.
12. McDonald’s is the largest franchise
McDonald’s is the largest franchise in the world with more than 38,000 stores and the richest franchise.
13. Hertz has franchises in most countries
Hertz is one of the most famous car rental companies in the world, with more than 10,000 locations in 150 countries.
14. Franchising accounts for one in seven businesses
About one in seven businesses are franchises, showing the strength and popularity of franchising in the U.S., which is expected to grow in the coming years.
15. Only 3 of the top 10 U.S. franchises are not food
The food industry is where you will find most franchises, but did you know that only three-thirds of the top ten franchises have nothing to do with the food industry?
16. A new franchise opens every 8 minutes
Did you know someone opens a new franchise every eight minutes? That said, I think this is a fascinating stat to share with you!
17. A name change can improve your franchise
If you own a franchise, sometimes a name change is the best move you can take, and it’s one of the main facts of owning a franchise because it can boost sales tremendously.
18. Professional sports teams are considered franchises
Did you know that all professional sports teams in the US, such as Major League Baseball or the NFL, are considered franchise teams?
19. 39% of the top 200 U.S. food franchises are international
There are hundreds of grocery chains in the United States, but 39% of the top 200 in the country also have international operations.
So you can think that having an international presence is good for business, builds loyalty, and helps expand the franchise to new locations never thought of before.
20. The Dallas Cowboys are the richest team in the NFL
The Dallas Cowboys have an operating income of $425 million, which is one reason the NFL team is the richest team in the NFL at $5.7 billion.
Plus, the Cowboys are one of the biggest sports teams in the world, so it’s not just because of their popularity in the United States.
21. 93% of McDonald’s restaurants were franchised in 2019
In 2019, approximately 93% of McDonald’s restaurants were franchises, which is one of the main reasons why McDonald’s consistently ranks first or second among franchises.
22. There are 4,500 franchise stores in China
When we think of franchising, we don’t usually think of China, so an interesting franchising fact I found is that there are over 4,500 franchises in China!
23. Franchise agreements average 10 to 20 years
Franchise agreements are the terms and responsibilities of the franchisor and franchisor, and most contracts or agreements are valid for 10 to 20 years.
Additionally, if either party breaches the agreement during this period, the franchise may be shut down and the agreement void.
What is the percentage of franchise success?
Franchising is very successful when you compare it to a self-made business.
For example, a franchise has a success rate of about 90%, while a startup has a success rate of about 15%.
How profitable is owning a franchise?
Owning a franchise can be very lucrative, but it depends on the industry you enter and the brand of the franchise.
For example, if you own a franchise in the restaurant industry, you can expect to make $82,000 a year in salary, but there are several factors that could change that number in either direction.
Why do most franchises fail?
If there is no right person to run the franchise, there is a mismatch between the business and the franchisee, or there is a lack of capital or personnel skills, the franchise is likely to fail.
Also, if the franchisee does not follow the right formula or business model to operate the franchise, the franchise can fail.
However, you are more likely to succeed if you take courses on owning or operating a franchise, have a business education background or other skills.
How Much Does a 7-Eleven Franchise Make?
7-Eleven’s franchises are worth about $1.4 million a year, and in 2019, 7-Eleven’s total revenue ended up being $18.66 billion!
So you can conclude that most 7-Eleven locations are in very good financial shape, regardless of location.
To learn more, you can also read our posts on grocery shopping statistics, tipping statistics, and curbside pickup statistics.
in conclusion
Some franchise statistics are interesting, such as 65% of franchise owners are men, but women’s franchise ownership has increased by 38% in ten years,
Additionally, 62% of franchise owners have a bachelor’s degree or higher, and veterans make up about 14% of franchise owners.
That said, the success rate of a franchise will depend on the industry, but could be as high as 90%, with the fast food or restaurant industry as a whole more likely to be successful.
