80+ Franchise Statistics and Facts You Should Know In 2024

Franchising is a powerhouse of a business model, driving economic growth and innovation across the globe. 

From iconic brands to emerging players, franchises are now very common. But how big is the franchising industry, and what’s behind its enduring success? 

The franchise global industry is set to reach $893.9 billion in 2024, with over 4 million franchise establishments. 

However, there is still so much to know about the industry. 

Get ready to see more insights about the franchise industry, from the United States to international markets, and discover the latest franchise statistics that reveal this dynamic sector’s scope, strength, and potential. 

Key Franchise Statistics (Editor’s Pick)

• The global franchise market is expected to expand by $1.63 trillion between 2022 and 2027, growing at 9.58% annually.
• There were an estimated 806,270 franchise establishments in the U.S. as of 2023.
• Franchise output is expected to grow by 4.1% from $858.5 billion in 2023 to $893.9 billion in 2024.
• There are more than 3,000 different franchise brands available.
• McDonald’s made $15.4 billion from its franchised restaurants worldwide in 2023.
• The real estate, healthcare, residential, business services, automotive, and retail sectors comprise more than half of the franchise industry.
• The success rate for one year of new franchises is 6.3% higher than independent companies.
• In 2023, the economic output of franchise establishments was valued at approximately USD 859 billion.
• Over 50 million Americans eat fast food daily. That represents 37% of the population. 
• France has over 1,965 franchise networks, 79,134 sales locations, 795,441 employees, and a total turnover of €68.8 billion.
• 60% of franchisors in Australia have been franchising for over 10 years.
• Australia’s franchise industry shrunk to $185.1 billion in 2024, down 2.4% annually over 5 years.
• In 2023, U.S. franchise establishments employed approximately 8.66 million workers.
• Franchise employment is projected to grow by 2.6%, adding more than 221,000 jobs to 8.9 million employees. This is a slight decline from the 244,000 jobs added in 2023.
• Labor costs and quality remain a top challenge for 34% of franchise businesses, down from 47% in 2023. 

General Franchise Statistics

1. The global franchise market is expected to expand by $1.63 trillion between 2022 and 2027, growing at a rate of 9.58% annually. (source)

2. There were an estimated 806,270 franchise establishments in the U.S. as of 2023. (source)

3. A significant 86% of franchisees reported feeling the impact of rising costs on their businesses, a slight decrease from the previous year’s figure. (source)

4. Franchise output is expected to grow by 4.1% from $858.5 billion in 2023 to $893.9 billion in 2024. (source)

5. The GDP of franchises will continue to grow, increasing by 4.3% to $545.8 billion in 2024. (source)

6. There are more than 3,000 different franchise brands available. (source)

7. FRANdata estimated there were 774,965 franchise establishments in 2021, with a growth rate of 2.8%, faster than most years’ historical growth. (source)

8. The total number of franchised establishments is expected to increase by 1.9% to 822,000 units. (source)

9. McDonald’s made $15.4 billion from its franchised restaurants worldwide in 2023. Most of that ($9.84 billion) came from rent, and $5.53 billion came from royalties. (source)

10. The real estate, healthcare, residential, business services, automotive, and retail sectors comprise more than half of the franchise industry. (source)

11. Franchise locations decreased by 2.6% in 2020. (source)

12. The success rate for one year of new franchises is 6.3% higher than independent companies. (source)

13. The commercial and residential services sector will experience growth in 2024. The number of franchise businesses in the sector will increase by 2%, totaling 81,000. Jobs will also increase by 2%, reaching 315,000. The sector’s output will grow by 4.6%, valued at $59.8 billion, driven by a recovering housing market. (source)

14. In 2024, the business services sector is expected to see a 1.8% increase in franchise locations, growing to 104,000 establishments. This growth will lead to an additional 32,000 jobs and a 3.8% increase in industry output, contributing $107.6 billion to the economy. (source) 

15. The franchise retail output sector is expected to increase by 3.1% in 2024, adding $4.1 billion to the industry. Additionally, franchise retail establishments are expected to grow by 3,500 units, creating over 40,000 new jobs. (source)

16. The lodging industry is projected to experience modest growth in 2024, with a 0.9% increase in franchises to 36,000, a 4.5% rise in output to $97.2 billion, and a corresponding boost in employment to 723,000 jobs. (source)

Franchise Statistics in the U.S.

17. In 2022, McDonald’s topped global sales among US franchises with $118 billion, followed by 7-Eleven with $93.5 billion in worldwide sales. (source)

18.  Over half (54%) of all franchised businesses in the US were owned by multi-unit franchise operators in 2019. (source)

19. The personal services franchise industry recovered to pre-pandemic levels in 2023, generating $42 billion, and is expected to reach $46 billion in 2024. After steady growth from 2013 to 2019 ($39.3 billion), the industry suffered a 33% decline in 2020 due to the pandemic, dropping to $26 billion. (source)

20. The US commercial and residential services franchise industry was unaffected by the pandemic, with a steady output growth since 2013, reaching $57 billion in 2023. (source)

21. The US business services franchise industry recovered to pre-pandemic levels in 2023, generating $104 billion. The industry grew 30% from 2013 to 2019, peaking at $106 billion, but declined to $91.3 billion in 2020 due to the pandemic. (source)

22. The food industry was disproportionately affected by inflation, with three of the top five industries most impacted being food-related. (source)

23. Nearly all (90%) franchise business units increased their prices to offset rising costs and maintain profitability. (source)

24. The initial investment to open a Kentucky Fried Chicken (KFC) franchise in the U.S. was approximately $3.7 million, with $1.9 million going towards building and site costs and $100,000 towards permits, licenses, and security deposits. (source)

25. The initial investment to open a Burger King franchise was approximately $4,520,900, with $1.6 million going towards improvements and construction, and $50,000 towards the franchise fee. (source)

26. The initial investment to open a McDonald’s franchise was estimated at $2,503,000, with $1,650,000 going towards signs, seating, and decor. (source)

27. The franchise output was forecasted to increase by 5% in 2022 to USD 76.4 billion. (source)

28. In 2023, the economic output of franchise establishments was valued at approximately USD 859 billion. In 2020, the sector experienced losses due to the COVID-19 pandemic, with an estimated economic output of approximately USD 677 billion, compared to USD 794 billion in 2019. (source)

29. One in twelve Americans in the private sector works in a franchise business or has a job because of franchising. (source)

30. One nickel of every dollar of economic output in the private sector is due to franchising. (source) 

31. According to the International Franchise Association, the franchise industry experienced significant growth in 2021, opening over 21,000 new locations and creating more than 660,000 additional employment opportunities across the United States. (source)

32. The Southeast region leads the nation in franchised businesses, accounting for 30% of the total U.S franchised businesses, employing 2.6 million people, and generating a staggering $268.2 billion in revenue. (source)

33. The Southeast region is expected to see a 3.5% increase in franchise establishments, while the Southwest region is anticipated to experience a 3% growth. (source)

34. In 2023, there were approximately 195,507 fast-food franchise locations in the US, encompassing various types of quick-service eateries, including burger joints, pizza places, and sandwich shops. (source)

35. Over 50 million Americans eat fast food daily. That represents 37% of the population. (source) 

36. The rate of U.S. businesses operating as franchises fell by 9.4% between 2014 and 2020, with some metros experiencing declines as high as 63.5%. (source)

37. Franchise businesses contributed US $670 billion to the U.S. economy in 2020, representing 3% of the total nominal GDP. (source)

38. Franchise market growth in the Southeast and Southwest will surpass other regions in the U.S. in 2024, as the top 10 states for franchise growth are Texas, Florida, Georgia, North Carolina, South Carolina, Tennessee, Maryland, Arizona, Colorado, and Virginia. (source)

In contrast, California and Washington are expected to see a decline in franchise growth, dropping by 4.2% and 2.3%, respectively. 

39. 83% of voters in a survey have a positive view of locally owned franchise small businesses in the United States. Also, more than half of voters (57%) use franchise businesses regularly. (source)

40. 64% of voters believe locally-owned businesses are more likely to support the local community. (source)

41. According to a survey, voters agree that franchise brands:

• Provide a consistent experience (75%)
• Empower local entrepreneurs (75%)
• Create loyalty and trust (77%)
• Offer quality products and services (71%)
• Have affordable products and services (75%)
• Are efficient (78%)  (source)

Franchise Statistics in Other Regions

42. UK fast-food franchise industry revenue is expected to grow from £12.1 billion to £12.7 billion by 2024-25, with a 3.8% increase in the final year. (source)

43. Canada’s franchising GDP grew from $100 billion in 2019 to $120 billion in 2024. Canada’s franchise industry is the 12th largest sector in the country and the second largest globally, contributing significantly to the nation’s economy. (source)

44. France has over 1,965 franchise networks, 79,134 sales locations, 795,441 employees, and a total turnover of €68.8 billion. (source)

45. Franchised businesses in Australia are heavily concentrated in New South Wales, Victoria, and Queensland. (source)

46. Lockdowns, trading restrictions, and social distancing measures since March 2020 have posed many challenges for franchised businesses in Australia. (source)

47. The Franchise Council of Australia represents the country’s franchise industry, which comprises over 1,200 franchise networks, more than 94,000 individual outlets, and employs over 565,500 people, contributing a significant $174 billion to the national economy. (source)

48. Market share concentration in the Australian franchising industry is low, with the top four companies generating 32% of market revenue in 2024. (source)

49. The non-food retail sector is the most sought-after for franchising in Australia, comprising over 25% of all franchise systems. (source)

50. Australia has 1,344 franchise systems with approximately 98,000 units, generating $184 billion in revenue and employing over 598,000 people. (source)

51. 60% of franchisors in Australia have been franchising for over 10 years. (source)

52. 92% of franchise systems are locally owned and operated in Australia, with the majority being homegrown Australian businesses that have been franchising for an average of nine years. (source)

53. 28% of Australian franchise systems had expanded to international level. (source) 

54. Based on volume, Nigeria’s top franchises are the fast-food and Quick Service Restaurants operators, accounting for 45% of the franchises. (source)

55. South Korea has the highest number of franchise brands, with over 4,800 concepts. India follows closely in second place, with nearly 3,922 franchise systems. Taiwan ranks third, boasting over 3,300 franchise brands. (source) 

56. Australia’s franchise sector plays a significant role in the country’s economy, with 95% of franchisors and almost all franchisees being small businesses with fewer than 20 employees. (source)

The sector’s stability is evident in the fact that nearly 300 franchise systems have operated for over 20 years, while 30% of franchisees have been in their business for 5-10 years and 40% for more than 10 years.

57. Women play a significant role in Australia’s franchise industry, owning around 34% of franchises and holding many leadership positions, generating a substantial $6 million annual contribution to the economy. (source) 

58.  In Australia, women-owned franchises drive growth, outpacing the overall sector with an impressive 7.8% average annual growth rate, significantly higher than the industry average. (source)

59. Australia’s franchise industry shrunk to $185.1 billion in 2024, down 2.4% annually over 5 years. (source)

60. China has over 4,000 franchise brands and 500,000 franchise outlets. (source)

61. In 2021, South Korea’s franchise sector had 834,290 employees, with 186,776 working in convenience stores. (source) 

62. South Korea’s franchise industry grew 10.6% in 2021, with 259,662 stores driven partly by increased demand for foreign food. The combined franchise stores’ revenue rose 14.2% to 84.8 trillion won (or USD 66.5 billion). (source)

63. The typical initial investment for a franchise in Singapore ranges from S$30,000 to S$150,000. (source)

64. South Africa has over 68,463 franchisees (a 43% increase from 2019) and 727 franchise systems. (source)

65. Franchising in South Africa generated an estimated R999 billion in turnover for 2023. This represents a 36% increase from 2019, accounting for 15% of South Africa’s GDP. (source)

66. Africa’s franchising finance market is valued at $93.9 billion, with available funding totaling $37.6 billion, leaving a financing gap of $7.51 billion. (source)

Franchise Employment Statistics

67. In 2023, U.S. franchise establishments employed approximately 8.66 million workers. (source)

68. According to ADP’s National Franchise Report, The U.S. gained an average of 46,400 franchise jobs per month in 2021. (source)

69. US business services franchise employment grew steadily from 2013 to 2019 (650,000), declined in 2020 (588,000) due to the pandemic, and slowly recovered in 2023 (adding an extra 34,000 jobs). (source)

70. Franchise employment is projected to grow by 2.6%, adding more than 221,000 jobs to 8.9 million employees. This is a slight decline from the 244,000 jobs added in 2023. Service-based industries, such as business and personal services, will drive employment growth in 2024, with a projected growth rate of 5.1%. (source)

71. The full-service restaurant sector was projected to see a 2.5% increase in franchise locations in 2022, reaching 32,819 establishments and supporting a workforce of approximately 1.1 million employees. (source)

72. The IFA estimated that franchise employment will increase by 8.8% in 2021 to 8.2 million, a net gain of 660,300 jobs from 2020. (source)

73. Employment in franchising is projected to increase by 2.6% in 2024 to a total of 8,886,555 (~ 89 million) employees in the U.S. (source)

74. 80% of respondents reported struggling with staffing shortages, with unfilled job vacancies impacting their franchises. (source)

75. Labor costs and quality remain a top challenge for 34% of franchise businesses, down from 47% in 2023. (source)

76. Franchise employment declined by 11.2% to 7.5 million in 2020, losing approximately 940,000 jobs due to limited capacity and revenue deterioration. (source) 

77. Franchise businesses employ over 8.2 million Americans, and in 2021, franchises contributed nearly USD 788 billion to the economy. (source)

78. In 2022, 85% of U.S. franchised businesses boosted employee wages, and 60% planned to continue this trend in 2023. Additionally, 43% of franchises enhanced employee benefits in 2022, with 42% intending to do the same in 2023. (source)

79. Franchises create 2.3 times more jobs than non-franchise businesses of similar size. Also, franchises generate 1.8 times more taxable revenue than independent businesses. (source)

80. Employees of franchise businesses earn up to 3.4% more and have better access to health insurance (65%) and paid leave (76%). (source)

81. The U.S. Census Bureau reports that franchise businesses recently made up over 11% of all businesses with paid employees across 295 industries. (source)

Conclusion

With its widespread presence, economic impact, and employment opportunities, franchising is a vital part of the business landscape. 

Whether you’re an entrepreneur, investor, or consumer, understanding these franchise statistics can help you make informed decisions and appreciate the significance of this interesting industry.

Frequently Asked Questions

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