30 Mind-Blowing Franchise Statistics to Start Your Day
Whether you’re an existing franchise owner, looking into buying a new franchise, or simply involved in the industry—there are some mind-blowing facts surrounding franchising, for sure.
Here are 30 compelling statistics—with no particular bias or order—for those of you hungry for interesting facts about this dynamic industry. Let’s go!
Interesting facts from all corners of the franchise industry
We’ve handpicked 30 exciting stats surrounding the franchise sector to pique your interest—from as many different sources as we could find. Enjoy!
- Mcdonald’s is the world’s largest franchise, with over 38,000 locations in 100+ countries and billions in annual revenues. And it costs upwards of $1 million USD to open a new franchise.
- U.S. franchises generated $827 billion USD in economic output in 2022.
- In Canada, approximately $1 of every $5 is spent at franchise businesses.
- Subway holds the record for most fast food franchise locations (which is saying something)—with more than 42,000 restaurants spanning the globe.
- It’s estimated that a new franchise opens every 8 minutes during the course of a single business day.
- Only two of the top-20 ranked franchises are headquartered outside the U.S. Those are Tim Horton’s in Canada, and CNHLS (a.k.a. Wallace Foods) in China.
- There are upwards of 4000 franchisors—4368 by 2019 available data—operating in China. These franchise establishments have an estimated 400,000+ locations throughout the country.
- An estimated 4300 new franchises open in Canada every year.
- Anytime Fitness is the first franchise on the continent of Antarctica—completing its presence on all seven continents. The fitness brand achieved this by opening a studio on the Magellan Explorer cruise ship.
- Over half—53%, precisely—of franchises are owned by individuals who own more than one outlet.
- India has an impressive franchise sector, with 200,000+ operating franchise units from 84% domestic franchisor brands.
- The American franchise industry employs about 8.5 million. That means the franchise business model makes up for about 5% of America’s labor, according to Statista.
- Franchise royalties range widely, with an average of between 4% and 12%, says IFPG.
- The Canadian franchise industry generates $100 billion per year and is growing constantly.
- Hertz, the car rental franchise, operates in over 150 countries worldwide. This officially makes it the franchise brand with a presence in the highest number of countries.
- The average age of a franchise owner is 44.
- 57% of global franchise brands in existence come from the U.S.
- The largest number of franchised independent businesses globally are quick-service restaurants.
- 24% of franchised small business owners own their franchise for just 1-2 years.
- In 2005, the International Franchise Association (IFA) sent out a formal letter requesting that a claim from its 1987 study was incorrect and that it should stop being spread. The claim said that the failure rate of franchises was only 5%, when in reality there is no flat failure rate for franchises across the board because of how diverse the industry is.
- The average restaurant franchise owner earns $82,033 per year. But as a lesson in skepticism, that average is taken from a very large disparity between low and high earners.
- 69% of franchisees are men.
- The healthcare franchise industry will be worth an estimated $100 billion by next year.
- Initial franchise fees average at $25 grand. And the standard total initial investment for a franchise falls between $150 and $200k.
- 7-Eleven is the top convenience store franchise in the U.S., while Domino’s is the highest-performing pizza franchise.
- Martha Matilda Harper is hailed as the founder of the first businesses representing the modern franchise model. Her convenience store franchise was opened in 1891 in Buffalo, New York.
- 1 in 10 Canadians are employed by a franchise business.
- There are currently almost 50,000 franchises operating in the UK.
- Around 62% of franchisees hold a bachelor’s degree.
- The global franchise industry is forecasted to expand at a compounded annual growth rate of nearly 10% to 2027.
With that type of anticipated growth, it’s probably time to give some serious consideration to becoming a franchisee.
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