From going to an office to grabbing a bite of food, we interact with franchisees daily. However, there are many hidden facts that you might not know about these franchises.
In this article, we will discuss the Franchise fun facts of 2022 which will be helpful for you and your business.
The facts will give you a vision for doing your business and also help you make a strategy for the future. So, let’s begin.
Top 10 Franchise Facts
- Statistics show that 10.5% of businesses are franchises in the USA.
- McDonald’s is the biggest franchise in the world, with more than 33,000 locations.
- Subway’s franchise revenue is $11 billion in the current financial year.
- Domino’s is the biggest pizza franchise in the USA, with gross annual sales of $12.25 billion.
- The majority of sports teams in the USA are considered franchises.
- Smoothie king’s franchise failure rate is 28%.
- The Dallas Cowboys is one the wealthiest NFL franchise, valued at $5.7 billion.
- Global esports franchise statistics predict the market to generate $1.5billion in revenue.
- Statistics for 2022 reveal that more than 792,000 franchising companies will establish by the end of the year.
- The New York Knicks are one of the wealthiest NBA franchises, worth $ 5 billion.
67 General Franchise Facts
The franchise is an ever-growing industry, so it is not easy for a single franchise to come on top. Every franchise has different aspects based on which it comes to the top.
However, the below-mentioned franchise companies made it to the franchising hall of fame thanks to some impressive numbers.
1. Richest Franchise
Currently, McDonald’s is the world’s richest franchise. Additionally, food & beverage companies such as KFC, Burger King, Domino’s, and 7- Eleven take up the first five places on the list.
2. Franchise Facts For 2022
More than 792,000 franchising companies will establish by the end of the year, adding a gain of 17,0000 new locations and a marginally lower growth of 2.2%.
3. Steve Ballmer Is The Richest Franchise Owner
Steve Ballmer is the owner of the second wealthiest sports franchise. He is the former CEO of Microsoft and purchased the Los Angeles Clippers for $ 2 billion in 2014.
Steve’s net worth is estimated at $68.7 billion, making him the second wealthiest person of a sports franchise in the world.
4. The US States That 10.5% Of Businesses Are Franchisees
As per the US Census Bureau, 10.5% of all national and local businesses are franchisees.
A recent economic survey revealed that the US has about 453,326 franchisees or franchisee-owned businesses out of 4.3 million businesses surveyed.
5. The Failure Rate Can Be Low
In comparison to other businesses, franchisees have a low rate of failure. It is hard to talk about the failure rate of a franchise because it has a low risk compared to starting one’s own new business.
In some franchise industries, the failure rate is as high as 80% to 90%, while hardly any franchises will fail in some industries.
6. Present In Almost Every Business Sector
Franchise facts reveal that service-related sectors, such as hotels, restaurants, home repair, cleaning, and many more, are among the most popular franchise options.
The Franchise sector is almost present in every business sector and, most of all is a profitable business.
7. Franchise Contribution To GDP
Franchise facts revealed that the franchise sector had contributed 3% of the GDP in 2022. The growth of the franchise sector should have exceeded that of the GDP, as expected. increase is 6.1%, or $451million.
8. With 44,758 outlets, Subway has managed to own the maximum number of outlets of any global franchise, followed by McDonald’s.
9. More than 7.49 million people in the U.S. work in a Franchise establishment.
10. The Franchise count in the U.S. alone is 750,000 and counting. To start a McDonald’s franchise, you require an initial investment of $1-$2.2 million.
11. On average, the royalty percentage of any franchise lies between 5-6%.
12. CNHLS and Tim Hortons are the only two franchises among the top twenty franchises which do not have a franchise headquarters in the U.S.
13. 93% of McDonald’s outlets were franchises as of 2019.
14. The Indian franchise market is growing at the rate of 30-35%, with more than 200,000 operating franchises.
15. Fast-food restaurants make up the largest portion of the franchise industry in the U.S.
16. On average, a restaurant franchise owner makes $82,000 annually.
17. In the list of top 100 franchises in the world, 70 are from the U.S.
18. With more than 7,300 outlets, Pizza hut has become the pizza chain having the most number of outlets in the U.S.
19. The Franchise Industry in the U.S. is valued at a whopping $670 billion.
20. The market size of the sports franchise in the U.S. is $34 billion.
21. You can start a Chick-fil-A franchise with an initial investment of only $10,000.
22. The length of a franchise agreement is usually 10-20 years.
22. The first ever modern-day franchise started in the year 1891.
23. Anytime Fitness was the first sports franchise to have a presence on all seven continents.
24. Isaac M. Singer is considered to be the godfather of the franchise model.
25. You can order a burger at Five Guys in more than 250,000 ways.
26. The first and the original Gold Gym is in Venice and is nicknamed “The Mecca” (as in the mecca of bodybuilding.)
27. Since 1945, Baskin Robbins has introduced more than 1000 flavors of ice cream.
28. In a day, Dunkin Donuts serves more than 3 million customers.
29. 300 companies start franchising every year.
30. With a collective economic output of $757.2 billion, there are a total of 7,59,240 establishments
31. There are more than 750,000+ up-and-running franchises in the U.S.
32. More than 50% of all franchises can be started with an initial investment of $250,000.
33. More than 8 million people work in franchise establishments in the U.S.
34. Most franchises are owned by men, but during 2011-2017 the female franchise pattern saw an 83% jump.
35. Every one in seven businesses is a franchise.
36. The only Indian franchise which has more than 1800 outlets and ranks at number 46th in the Global Top 101 Franchise List is “Cafe Coffee Day.”
37. A franchise business opens every 8 minutes.
38. It is much easier to obtain a franchise business loan than any other business loan.
39. Most franchise businesses have less than 100 units.
40. The oldest city, one-name sports franchise in the U.S. is Philadelphia Phillies.
42. With 516 properties in the world, Marriott International runs at number one in the list of Hotel franchises.
43. The Hertz Corporation has offices in 150 countries and is the top operating franchise in the most number of countries.
44. Martha Matilda Harper was the first woman to start a franchise business, and not only this, her hairdressing business is only run by women making it the first commercial franchise of its kind.
45. Steve Kuhnau concocted a drink that could be drunk by even lactose-intolerant people, and that is how he started the “Smoothie King” franchise.
46. Harland Sanders who is the founder of Kentucky Fried Chicken delivered babies and practiced law, among many other odd jobs he did before opening his franchise.
47. James Monaghan, one of the two founder brothers of Domino’s, could have been a millionaire, but he gave up a 50% stake to his brother in exchange for a used Beetle car.
48. In 2013 Friendly’s Ice Cream made a Guinness world book record as “world’s biggest dessert party” by serving 794 people at its headquarters.
49. In 2015, Taco Bell became the first fast food restaurant chain to get certified by the American Vegetarian Association.
50. With 1.5 lakh franchisees and a total of 4600 franchises, India has become the 2nd biggest global franchise market globally.
51. In the coming five years, the Indian industry is predicted to grow by $140-$150 billion.
52. Almost 80% of the franchises are local, whereas only 16% are global or national.
53. More than 51.5% of food franchises earn a net profit of $50,000 annually.
54. Among the top 20 franchises in the world, the U.S. serves as a headquarters for 18 of them.
55. Almost 44% of franchise owners have a bachelor’s degree.
56. Anytime Fitness owns a gym in Antarctica too.
57. Subway Sandwiches can be made in 38 million ways, and all of its restaurants smell the same.
58. McDonald’s is a very versatile franchise and offers a menu unique to some countries.
59. Coca-Cola initially used to put cocaine in their drink, and now they have switched to cocaine-free drinks.
60. Dan and Frank Carney, the founders of Pizza Hut, chose this name because they didn’t have enough money to afford a bigger name for the sign.
61. Barack Obama is often spotted at Five Guys and is a big fan of this franchise.
62. Over the last 10 years, female franchise owners have increased by 38%.
63. The average age of a franchise owner is 44 years.
64. According to Zippia, 10% of Franchise owners belong to LGBTQ.
65. The average starting salary for Franchise owners is $41,000.
66. Most franchise owners are from Chicago, Charlotte, IL, and NC.
67. The ethnicity of franchise owners is White (71.0%), then Latino or Hispanic (14.3%) followed by Asian (6.1%).
Doing a franchise business is not easy if you don’t know the market position. Even in your startup, it is important to analyze the market position.
This will help you to understand which industry is in demand and how much you make a profit from franchises.
So, we suggest you analyze the market condition and move forward with your decision.
Now we are coming to the end of this article, hope you like reading this article on Franchise Facts 2022.
Frequently Asked Questions
Which is the biggest franchise in the world in 2022?
Taco Bell will be the biggest franchise in the world in 2022.
Which is the richest franchise in the world in 2022?
McDonald’s is the richest franchise in the world in 2022.
Amit Gupta is the founder of DrFranchises – a digital marketing agency that helps brands rank better on Google Maps through local SEO strategies. Amit has over 11 years of experience in digital marketing, SEO, email marketing, and social media marketing. He’s also the owner of multiple franchises and has helped countless brands achieve success online. When he’s not working, Amit can be found playing with his dog.