Do you want to know more about a restaurant franchise, including some of the best facts and trends about franchises?
Well, I will tell you 23 of the best franchise statistics below, so keep reading to find out what I’ve discovered while researching this topic!
Franchise Statistics In 2023
There are more than 700,000 franchises in the United States alone, employing about eight million Americans as of [currenetyear]. Each year, around 300 companies begin franchising, which accounts for 3% of the nation’s GDP (Gross Domestic Product). In terms of ownership, over 50% of franchise owners have at least a Bachelor’s degree.
Do you want to know more about a franchise or have more questions you want to be answered? If so, continue reading as I dive into the complete list and so much more!
1. 300 Companies Begin Franchising Every Year
One interesting franchise statistic is that around 300 companies begin franchising every year, which is surprising and a trend that is likely to continue for several years.
However, only a small percentage of these 300 companies will be successful in the long run by owning and operating a franchise.
2. Over 750,000 Franchised Outlets Exist In America
What’s crazy is that more than 750,000 franchised outlets exist in America, which is an incredible number.
3. Franchises Employ Over 8 Million Americans
Franchises employ about eight million Americans, and out of that number, 50% of workers are employed by fast-food or food service businesses.
4. About 3% Of The GDP Comes From Franchises
Franchises are essential to the economy in America, which is shown by the fact that around 3% of the GDP comes from franchises.
Furthermore, this number will likely grow in the years to come as more businesses try to start a franchise and experiment with this type of business model.
5. 62% Of Franchise Owners Have A Bachelor’s Degree Or Higher
Franchise owners typically have higher education and are knowledgeable in business, so it makes sense that 62% of franchise owners have a Bachelor’s degree or higher.
6. Fast-Food, Travel, Real Estate, & Home Services Were The Biggest Franchise Categories In 2021
In 2021, the biggest franchise categories consisted of fast-food businesses dominating the market, but home services, travel, and real estate also were popular franchise categories.
7. 10.5% Of All Businesses Are Franchises In America
One cool trend is that in America, 10.5% of all businesses are franchises, with limited-service restaurants accounting for a majority of those franchises.
In addition, car dealerships, gas stations, and convenience stores also make up a large portion of these businesses.
8. 65% Of Franchise Owners Are Men
It shouldn’t be a surprise that men are the majority owners of franchises, with more than 65% of franchises being owned or operated by men.
9. In 10 Years, Female Franchise Owners Increased By 38%
While men are the majority of franchise owners, women are stepping up and taking on the role of franchise owners too.
For example, within the past ten years, women’s franchise ownership has increased by 38%, and this trend is expected to continue over the next several years.
10. The Godfather Of The Franchise Model Is Isaac M. Singer
The franchising model of modern times was created by Isaac M. Singer, who lived in the United States around the 1850s and wanted to improve upon sewing machines.
Furthermore, while he had the technical abilities, he didn’t have the logistics or money to complete his dream vision and began charging licensing fees to sellers.
Therefore, that was the first modern franchise, and in 1851, the Singer Corporation was created and started producing sewing machines for customers, which is still in operation.
11. Veterans Account For 14% Of Franchise Owners
Did you know that veterans account for about 14% of all franchise owners in America? In 2017, more than 66.000 franchises were owned by veterans.
12. McDonald’s Is the Biggest Franchise
McDonald’s is the biggest franchise in the world, with more than 38,000 locations, and it’s also the wealthiest franchise.
13. Hertz Corporation Has Franchises In The Most Countries
Hertz is one of the most well-known rental car companies globally, and it has more than 10,000 locations across 150 countries.
14. Franchises Account For 1 In 7 Businesses
About one in every seven businesses are franchises which shows the strength and popularity of franchises in America, which is expected to grow in the coming years.
15. Only 3 Out Of The Top 10 Franchises In America Aren’t Food
The food industry is where you’ll find the majority of franchises, but did you know only three out of ten of the top ten franchises aren’t connected to the food industry?
16. A New Franchise Opens Every 8 Minutes
Do you know that every eight minutes, someone opens a new franchise? That said, I thought this was a fascinating statistic to share with you!
17. Changing The Name Can Improve Your Franchise
If you have a franchise, sometimes changing the name is the best move you can make, and it’s one of the leading facts about owning a franchise because it can drastically improve sales.
18. Professional Sports Teams Are Considered Franchises
Did you know that all professional sports teams within America, such as Major League Baseball or the National Football League, are considered franchises?
19. 39% Of The Top 200 Food Franchises In America Are International
There are several hundred food franchises in America, but 39% of the top 200 within the country also have an international presence.
Therefore, you can take away that having an international presence is good for business, builds loyalty, and can help expand franchises to new locations never thought possible.
20. The Dallas Cowboys Are The Richest NFL Franchise
The operating income of the Dallas Cowboys is $425 million, which is one reason the Cowboys, an NFL team, is the wealthiest NFL franchise with a value of $5.7 billion.
Additionally, the Cowboys are one of the biggest sports teams globally, so it’s not due to just popularity within the United States.
21. 93% Of McDonald’s Restaurants Were Franchises In 2019
In 2019, around 93% of all McDonald’s restaurants were franchises, which is one of the main reasons why McDonald’s is consistently either first or second in franchise locations.
22. 4,500 Franchises Exist In China
We typically don’t think about China when we think of franchises, so one franchise fact I found interesting was that more than 4,500 of them exist in the country!
23. Franchise Agreements Average Between 10 & 20 Years
Franchise agreements are the terms and responsibilities of both the franchisee and franchisor, and most contracts or agreements run between ten and 20 years.
Additionally, if either party breaks the agreement during this period, the franchise could be closed down and the agreement invalidated.
What Percentage Of Franchises Are Successful?
When you compare a franchise to a business that began from scratch, franchises are incredibly successful.
For example, the success rate of franchises is about 90%, whereas a business startup has about a 15% chance of success.
How Profitable Is Owning A Franchise?
Owning a franchise can be very profitable, but it depends on the industry you’re getting into and the franchise’s brand.
For example, if you have a franchise in the restaurant sector, you can expect to earn a salary of $82,000 per year, but several factors can change this number in either direction.
Why Do Most Franchises Fail?
A franchise is most likely to fail if the right person doesn’t run the franchise, the business and franchisee don’t match, or a lack of funds or people skills.
Additionally, franchises can fail if the franchisee isn’t following the correct formula or business model to run the franchise.
However, if you take courses on owning or operating a franchise, have an educational background in business, or have other skills, you’re more likely to succeed.
How Much Does A 7-Eleven Franchise Make?
7-Eleven franchises make about $1.4 million per year, and in 2019, the total revenue for 7-Eleven ended up being $18.66 billion!
Therefore, you can conclude that most 7-Eleven locations do very well financially regardless of location.
Several franchise statistics are interesting such as that 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 account for about 14% of franchise owners.
That said, the success rate of a franchise will depend on the industry but can be as high as 90%, and the fast-food or restaurant sector is more likely to succeed overall.