51+ Interesting Franchise Statistics 2022

The franchise industry is skyrocketing and achieving incredible growth in terms of business. There are more than 700,000 franchises in the USA alone.

Each year, around 300 companies start franchising, which accounts for 3% of the Gross domestic product and employs about eight million Americans as of the current financial year.

There are several exciting franchise statistics which has proven that the franchise business is the easiest way to make a profit.

In this article, we discuss franchise statistics 2022 and some hidden facts you have never heard before. So, keep reading to learn more.

Franchise Statistics In USA
Franchise Statistics In the USA

Franchise Statistics In the USA

  1. 750,000 franchise establishments – A total of 750,000 franchise establishments are there in the U.S., and the list is growing every day.
  2. Employment in quick service restaurants – Quick service restaurants employ more than 50% of the total franchise workers in the U.S., followed by retail food service businesses that employ 2 million people.
  1. The biggest Pizza franchise in the U.S. – With annual sales of $12.25 billion, Dominos is the biggest Pizza franchise in the U.S., followed by Pizza Hut with an annual sales of $5.56 billion. 
  2. The most lucrative franchise in the U.S. – McDonald’s is the most lucrative franchise in the U.S., which generates more than 93 billion in sales each year. 
  3. The economic output of franchise establishments – In 2020, Due to Covid, the economic output of the U.S. franchise industry plummeted a lot and generated only $670 billion of economic output as compared to the output of 787.5 billion in the year 2019.
  4. Leading U.S. franchise by sales 2020 – In 2020, USA’s McDonald’s reported $93.32 billion in sales globally, followed by 7-eleven, which accounted for $91.8 billion.
  5. The decline of Subway stores in the U.S. – Over the last five years, Subway stores in the U.S. has decreased from 27 thousand to 22 thousand.
  6. Subway Franchise Investment is very expensive – the initial subway franchise investment as of 2022 is $506,900, with lease hole improvements making it the most expensive franchise investment.
  7. The U.S. business services franchise industry – Between 2013-2019, the economic output of the business services franchise industry in the U.S. increased by 30% and generated $106 billion, but in 2020, due to covid, it fell to $91.3 billion.
  8. Employees in U.S. Franchise establishments  – Between 2013-2019, the number of employees working in U.S. Franchise increased steadily. However, in 2020, their employment decreased by a million and reached 7.5 million
  9. The output of franchise establishments – Quick service restaurants in the U.S. generated 260 billion U.S. dollars in 2021, which is the highest output, followed by retail food services and products, which gave an output of 127 billion U.S. dollars.
  10. Personal services franchise output – Between 2013 and 2019, the personal services franchise output was steady, reaching 39.3 billion U.S. dollars. However, in 2021, due to Covid, this sector’s output plummeted greatly and came down to 26 billion U.S. dollars. 
  11. The employment rate of the Personal services franchise industry – In 2020, the Employment rate of the Personal services franchise industry fell sharply to 476.000 from the earlier rate of 547,094 owing to Covid.
  12. Output generated by residential and commercial service franchises – Between 2007 and 2020, the overall output of residential and commercial services increased by ten percent and reached 49.3 billion U.S. dollars.
  13. The employment rate of residential and commercial service franchises – The Employment rate of residential and commercial service franchises grew steadily from 2013 to 2020, reaching 254,000. And this year, it is predicted to increase further.
  14. The employment rate in the business service franchise industry – Between 2013-2019, there was a steady growth in the number of people employed in the business service franchise industry, reaching 650,000 approx. However, in 2020, it fell down to 588,000 owing to Covid. 
  15. Leading Quick service chain restaurant in the U.S. by sales – With sales of 5.01 million U.S. dollars per unit, Chick-fil-A was the Leading Quick service chain restaurant in the U.S. in the year 2020.
  16. Consumer spending in the QSR sector – In 2021, the consumer spending in the quick service restaurant sector U.S. exceeded three hundred billion U.S. dollars. 
  17. The oldest one-city, one-name sports Franchise – the oldest one-city, one-name sports franchise in the U.S. is Philadelphia Phillies.
  18. The market size of sports franchise – The market size of sports franchises in the U.S. in terms of revenue is $43.4bn as of 2022.
  19. Changing Motives – Between the years 2019-2020, people who gave “dissatisfaction with corporate America” as their reason for pursuing entrepreneurship rose by 27%. 
  20. Based on 2019’s research data, the 2-year success rate of a franchise is 8% more than the success rate of an independent business.
  21. There are more than 300 different franchise industries in the U.S. franchise sector. 
  22. In the U.S., approximately 10% of the people who own a franchise are LGBTQ. 
  23. In the United States, the average age of a franchise owner is 44 years. 
  24. The U.S. has 71.0% White franchise owners, followed by 14.3% of people who belong to the Latino or Hispanic ethnicity and then 6.1% of the Asian ethnicity.
  25. In the U.S., the top 10% of franchise owners earn more than $90,000.
  26. Between 2017 and 2022, the sports franchise market size has grown by 2.1% on average.
  27. Out of the top 200 US food franchises, 39% are international.
  28. 80% of the franchise owners in the U.S. work in the private sector, followed by 19% in the public sector and 1% in education.
  29. In the U.S., the total sales by franchise businesses are predicted to cross $2 trillion.

11 Franchise Statistics That Will Blow Your Mind

When we look at the statistics for the last two years, it didn’t have any positive response.

Deep down, we all knew that the pandemic hit the world retail industry and still didn’t recover from it.

But if we analyze the statistics before the pandemic arrived, it was amazing and gave a positive response which means the franchise has many possibilities to earn profit.

Let’s look at franchise statistics that provide greater insight into the current state of the industry.

1. 300 Companies Started Franchising Every Year

One of the most notable facts is there are more than 300 companies begin franchising every year, which is surprising growth and a trend that is likely to continue for several years.

But not all companies will get success in the long run and operate a franchise.

A small percentage of 300 can get success in owning and operating a franchise.

2. Franchises Employ More Than 8 Million Americans

A franchise gives employment to over 8 million Americans, and out of that, 50% of employees are working at fast-food or food services restaurants. 

3. 3% Of GDP Comes From the Franchise

Franchises are also contributing to the economy of America, which is shown by the fact that around 3 % of the nation’s GDP comes from the franchise.

Moreover, the numbers will likely be growing in the upcoming years as more businesses try to start a franchise.

4. Franchise Owners Have A Bachelor’s Degree Or Higher

62% of franchise owners only have higher education and are knowledgeable in the business.

So, the franchise doesn’t require any high qualifications. You can easily manage your business with knowledge.

5. America Serves As The Headquarters Of Franchise

There are several sources that say that the USA serves as the headquarters for 18 of the top 20 franchises worldwide, and 10.5% of all businesses are Franchised in America.

6. 700,000 franchise owners in America

There are nearly 700,000 franchise owners in America, according to Zippia.

7. 20% Franchise Business Close After Two Years

The Bureau of Labor Statistics reports that about 20% of independent businesses closed after two years, but 92% were still going strong.

8. Male VS Female Franchise Ownership

When it comes to franchises, there’s no difference between male and female ownership.

In fact, over the past decade, 38% more women have become franchise owners than men did at one point in time! And out of all new businesses opened within two years – 32 percent are run by ladies right now too so clearly this genre has something special about them.

9. Franchise Business Vs Other Business Percentage

According to the U.S. Census Bureau. 10.5% of all businesses are franchises.

10. 62% of franchise owners have a bachelor’s degree

This is not surprising given how much time and effort goes into opening up new locations, but it does show just what type of minds are needed for this industry!

11. $41 Billion In GDP By Veterans till 2021

Every year, thousands of veterans make the decision to turn their lives over again by becoming franchisees.

These brave individuals have served our country and found success as entrepreneurs with 66000+ franchises generating $41 Billion in GDP under one roof till 2021.


9 Franchise Fun Facts

  1. 750,000 Franchises are in business in the USA alone
  2. Franchises employ more than 8 million citizens of America.
  3. 3000 types of different franchise industries comprise the USA franchise Sector.
  4. 80% of franchise brands are local and regional, while 16% are national or global.
  5. Franchises business accounted for 10.5% of all business in 2007.
  6. Food franchises make less than $50,000 per year in net profit.
  7. The success rate of franchise businesses is about 8% higher.
  8. Every 8 minutes, a new franchise opens during an individual business. 
  9. Most of the owners of the franchise are men. Women’s ownership jumped after 2011. Between 2011 to 2017, we notice an 83% growth in women’s ownership and still growing.

The Biggest Franchise & Its Statistics

  1. McDonald’s is the biggest franchise in the world. It has more than 38,000 Outlets in 117 countries. Followed by. Subway has 44,758 outlets in 122 countries. Subway has more outlets than McDonald’s, but still, McDonald’s is the biggest franchise compared to investment and profit.
  2. Gas stations, hotels/hospitality, full-service restaurants, and new car dealers are the types of franchises with the most business units.
  3. Marriot International is always placed at the top of the hotel industry.
  4. McDonald’s and Subway might be the most popular franchise, but the top place for the number of outlets goes to retail chain 7-Eleven. A 7-Eleven convenience store has more than 71,100 stores in 17 countries. 
  5. Anytime Fitness is the first franchise that has outlets in all seven continents.

Why Is Franchise Statistics Important To Analyze? 

Statistics are not just facts or a few numbers. It allows you to evaluate claims-based quantitative evidence.

It is a collection of knowledge and procedure that helps you to analyze the best from data and also differentiate between reasonable and dubious conclusions.

Investing in a franchise is an important decision in life. It can make and destroy your portfolio. Obviously, when we are investing money, so it’s important to do a cross-check.

So, before starting any franchise, you just must look at statistics first, and it will give you a clear vision that investing in the franchise worthful or not. 


Conclusion

Globally, one in seven businesses is a franchise which equates to around two million franchised companies and employing more than a 19million people.

As a US record, franchising contributes a staggering to the global economy every year.

Well, we have now come to the end of this article, and these are some franchise facts that you can discuss.


Frequently Asked Question

What is the most successful franchise to own?

As per reports, the food and beverage industry are most successful franchise to own.

You don’t need a higher investment to run a beverage franchise. Working capital is lower than in other industries, while revenue is undoubtedly the best.

What is the success ratio of the franchise?

The franchise survival rate is 90%. As per data, franchising is the safest and lowest risk way to go when starting a new business.

How many franchises are there currently?

There are more than 753,770 franchises established in the United States in 2022. 

Which is the low-cost franchise to buy?

Some of the low-cost franchises one can buy include Cruise Planners, Help-U-Sell Real Estate, Jazzercise, United Country Real Estate, Stratus Building Solutions, Anago Cleaning Systems, and JAN-PRO. Some of them are home-based franchises you can easily manage from home. 

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