30 Outstanding Statistics Regarding the Global Franchise Industry

The franchise business has existed for a while. Despite the fact that its initial applications were judged unsuccessful (the Singer Company incident, for example), it continued on the route it was forging for itself. In the late 1950s, and over a century (and a few years) later, the sector had its first growth. Cut to the present, where the franchise company is exploding and breaking records all over the world. Â

Its success can be attributed to a variety of factors. Investors frequently select franchise outlets as the safest option because more independent enterprises are struggling to establish themselves in the market. With so many communication channels at their disposal, these massive businesses spare no expense to ensure that the general public is aware of their presence, which increases interest and sales. Numerous additional factors also play a role. However, the promise of a strong client base, supported by a reputation for a reputable name and a tried-and-true business strategy, is the most alluring thing a franchise offers prospective investors.

Anyway, here are 30 facts regarding the franchise market for you to think about.

• Each year, on average, 300 businesses begin franchising.
• Based solely on sales, Seven-Eleven had an astounding 68,236 locations worldwide as of March 31, 2019, making it the largest franchisor in the world. (Data from Statista)
• Seven out of the eight businesses are franchises.
• Subway is the most widely licensed f&b brand in the world with 44,758 locations, followed by McDonald’s with 36,525 locations.
  (Referring to CNBC News)
• Despite having fewer locations (37,855) than Subway, McDonald’s outnumbers the latter in the number of nations where it has franchisees. McDonald’s has locations in 117 nations, whereas Subway has locations in 112.
  
• India is the second-largest worldwide franchise market after the United States, with 1.5 lakh franchisees and 4600 franchises. Economic Times, cited
• The Indian franchise market is predicted to expand by between USD 140 and USD 150 billion during the next five years.
• In the United States alone, there are over than 750,000 active franchise outlets. (Source: Law Offices of Goldstein)
• Multi-unit franchisees control 53% of all franchises.
• More than 80% of all franchises are local and regional brands, with only 16% being national or international.
• 51.5% of food franchises, based on a Franchise Business Review survey, make less than $50,000 in net earnings annually.
• Except for Tim Hortons (Canada, Rank 18), which is headquartered there, and CNHLS, 18 of the top 20 franchises globally are American-based (Also called Wallace Foods, China, Rank 19). Out of the top 101 franchises, an astounding 70 are situated in the United States, according to the final count. (From Wikipedia)
• Cafe Coffee Day is the sole Indian brand in the Global Top 101 Franchise List, with about 1800 locations. (Rank 46)
• The remaining 37% of franchises are dispersed over 28 different industries, with 37% falling under the category of “Food-Related” brands.
  
• A minimum of USD 250,000 is needed to open more than 50% of all franchisees.
• Every eight minutes a new franchise starts within a single work day. (Source:Â ReferenceforBusiness.com)
• Over 1,644,100 individuals are employed by franchise enterprises in the United States. 4,72,950 of these are franchises in the retail food industry, 6,54,160 are in business services, and 5,16,990 are in personal services. (Data from Statista)
• McDonald’s produces USD 3.89 billion in royalty income annually from its USD 96.15 billion in yearly global sales.
• With a total economic output of USD 250 billion, QSR (Quick Service Restaurant) franchisees are in first place, followed by business solutions with around USD 100 billion.
• 7,59,240 franchise businesses exist in total, producing USD 757.2 billion in total economic output.
• According to an estimate, there are approximately 3,000 distinct franchises operating across 300 different business areas in the United States.
• According to the U.S. Census Bureau, franchise firms made up 10.5% of all enterprises in 2007. Census from 2007
• A rise in franchising is also being seen among small firms; according to the IFA (International Franchise Association), 4% of all US small enterprises are franchisees.
• According to estimates, the franchise sector comprises almost 50% of all US retail sales.
• Franchisees often pay a royalty charge that varies from three to six percent of their total monthly sales.
• Less than 100 units are operated by the majority of franchise brands.
• The typical term of a franchise agreement is ten years.
• The amount of downloads for meal delivery apps has surged by 380% compared to 2016 due to the increasing number of F&B franchisees.
• There were 94 “public-to-private” transactions in 2016 (private equity taking out publicly traded corporations). The number was listed as 152 in 2017. (Financial Times, source)
• An extra 39% of the top 200 restaurant franchises have expanded internationally in the last three years. (Refer to FranData)

   

  Well, crunching these figures revealed some intriguing data. Even though it is sometimes asserted that no amount of information can adequately prepare your company for unforeseen market developments, it is never a bad idea to check the facts before making a decision.

  We sincerely hope you liked reading these data as much we did putting them together. Please contact us if you would like more information about franchise business possibilities in India.