Top Franchise Industry Statistics and Facts

Franchises offer prospective entrepreneurs many benefits, including access to marketing, training, and an existing established brand. For these reasons, they’re becoming increasingly popular. Entrepreneurs who don’t want to build businesses from scratch are turning to them as a welcome alternative.

Key Franchise Statistics for 2025 - Editor’s Choice

• McDonald’s is the largest franchise in the world, with more than $25.93 billion in annual revenue in 2024.
• There are more than 806,270 franchise establishments in the US alone in 2024.
• 8.7 million US employees work in franchise businesses in 2024.
• The economic output of the US franchise industry is valued at $860 billion.
• McDonald’s franchises require a hefty initial investment of $1.47 million to $2.64 million.

Global Franching Data

McDonald’s is the largest franchise in the world, with $129 billion in global sales in 2024.

(McDonald's)

Other large franchises include KFC, 7-Eleven, Burger King, and Subway. 

Subway has over 25,000 restaurants across the world in 2024.

(Statista)

While Subway got started in 1965, more than 11 years after McDonald's, it has been able to expand quite rapidly. It now has over 20,000 outlets in the US alone.

7-Eleven is the largest retailed in the world when it comes to store numbers, with over 85,000 outlets across 19 countries in 2024.

(Which Franchise)

McDonald’s might be the biggest franchise in the world, but 7-Eleven has been around longer - since 1927. The convenience store chain now has more than 13,000 outlets in the US alone. 

39% of outlets of the top 200 US food franchises are international.

(Frandata)

More franchises than ever are expanding from the US overseas. 

The only three franchises in the top 20 whose headquarters are not in the US are Tim Hortons, Wallace and Mixue Ice Cream & Tea.

(Wikipedia)

China's Mixue Ice Cream & Tea rose to third place by November 2024, while CNHLS, also known as Wallace Foods in China, comes in at number 7. Canada's Tim Hortons now stands at the 19th place. 

As of 2024, 93% of McDonald’s restaurants were franchises.

(McDonald's)

This high rate is still below McDonald’s target of making 95% of its restaurants franchises. 

There are approximately 6,000 franchises operating in China in 2024.

(China Briefing)

China is now easily one of the largest franchise markets in the world.

India has nearly 200,000 operating franchise units.

(Entrepreneur)

National and regional brands comprise 84% of the franchising industry in India. Franchising in India is now believed to be worth more than $50.4 billion, growing at a yearly rate of 30%-35%. 

The Leading Franchises in the US

There are more than 806,270 franchise establishments in the US alone.

(Statista)

The number is expected to grow by 1.9% by the end of 2024.

The economic output of the US franchise industry is valued at $860 billion.

(Statista)

The number has steadily risen, as for example, in 2022 the value was $825 billion. 

8.7 million US employees work in franchise businesses in 2024.

(Statista)

The franchise economic model is proving successful, with more workers than ever signing up to be a part of it. Franchises currently employ around 5% of the US labor force. 

The largest segment of the franchising industry in the US is fast-food restaurants, generating $288 billion in total economic output. 

(Statista)

When you add up all of the revenue of “quick service” franchise restaurants in the US, the total comes to more than a quarter of a trillion dollars. 

10.5% of all businesses in the US are franchises in 2024.

(Franchise Times)

Limited-service restaurants make up the lion’s share of franchises, followed by car dealers, gas stations, and convenience stores. 

Restaurant franchise owners earn an average of $82,000 per year.

(Franchise City)

However, this can be deceptive, as the distribution of income is uneven. Around 51.5% earn profits of less than $50,000, with a small fraction making more than $250,000, pushing the average up.

There are more than 195,507 quick-service restaurant franchises in the US.

(Statista)

Quick-service restaurant franchises are the most common in America. They include fast-food restaurants, cafeterias, ice cream parlors, pizza-delivery establishments, and some carryout shops, such as sandwich shops. 

3,000 is the number of franchises in the US.

(Frankart Global)

Franchises cover more than 300 business categories: everything from fast food to car and equipment rental.  

The US has more than 70 of the world’s top 100 franchises.

(Frankart Global)

America dominates the global franchise scene, with countries like Canada, Australia, China, and Brazil a long way behind. 

Dominos Pizza had the most units of any pizza chain in the US: more than 6,854 in 2023.

(Statista)

Dominos has recently overtaken Pizza Hut, which now has 300 less stores, while Little Ceasars is lagging behind by 2,000 stores.

Domino’s Pizza generated $4.66 billion by Q3 2024.

(Statista)

The total pizza industry revenue in 2024 is expected to reach a massive $50.1 billion.

The sports franchise market size in the US is $44.5 billion in 2024.

(IBISWorld)

Dallas Cowboys, Madison Square Garden Sports, New York Yankees, and Los Angeles Lakers are among the sports franchises with the biggest market share in the US.

There are a total of 1,255 businesses in the US sports franchise industry in 2024.

(IBISWorld)

None of these businesses have a market share exceeding 5%.

Franchise Investment Data

McDonald’s franchises require a hefty initial investment of $1.47 million to $2.64 million in 2024.

(FranChimp)

McDonald’s asks for a $45,000 upfront franchise fee and requires you to have at least $500,000 in liquid assets.

It costs just $10,000 to set up a Chick-fil-A franchise.

(Chick-fil-A)

Anyone who wants to set up a Chick-fil-A in Canada should prepare to pay 15,000 Canadian dollars or $10,000. The quick-service restaurant is highly selective and requires candidates to show proven business acumen, an entrepreneurial spirit, and evidence of personal financial integrity. 

More than 300 companies begin franchising operations each year. 

(Frankart Global)

Hundreds of new companies experiment with launching franchises every year. However, only a handful are successful long-term. 

The typical length of a franchise agreement is 5 or 20 years.

(Franchisegator)

The franchise contract spells out the responsibilities of both the franchisor and the franchisee for the period, as well as the conditions under which the franchise can operate. 

The typical royalty percentage of a franchise is 4%-12% of the gross revenue.

(Franchise 500)

Franchisors, however, may take fees in the range of 1%-50%. Some also charge fixed fees, regardless of volumes, but this is rarer. Most fees go toward common marketing drives. 

Smoothie King has a failure rate of 28%.

(Unhappy Franchisee)

Some franchises, such as Smoothie King, have high default rates on their initial loans. Some estimates put these as high as 28%. 

Quick Facts About the Origins of Modern Franchising

The first modern-day franchise was set up in 1891.

(IFA)

Canadian-American Martha Matilda Harper was the first to set up a franchise in 1891 when she began allowing entrepreneurs to set up their own Harper Method Shops. She included many modern franchising elements, such as branded products, advertising, group insurance, and field visits. 

General Motors sold its first franchise in 1898. 

(IFA)

The giant automaker sold a franchise to William Metzger of Detroit. 

Anytime Fitness, one of the most well-known sports franchises in the US, was the first franchise to have a presence on all seven continents.

(HCM)

Anytime Fitness managed to achieve this feat by opening a franchise on the Magellan Explorer cruise ship, which offers tours of the Antarctic coast. Guests aboard the vessel have access to Anytime Fitness’s training facilities 24 hours a day, according to a company spokesperson.