Number of franchise establishments in the U.S. 2007-2020

In 2019, there were 773,603 franchise establishments in the United States. Franchising is a business concept where a franchisee is contractually permitted to use the franchisor’s ideas and business model.

Franchising in the U.S.

The franchise industry in the United States allows for companies to put licenses on their brand and distribute to a separate business. These smaller businesses work under the title of the bigger company. Franchises are available through different types of establishments. However, the franchise industry is most commonly known for its fast food sector. 30 percent of those interested in opening a franchise in the United States indicated that they are most interested in opening a quick service fast food franchise. In 2019, the economic output of franchise establishments in the United States was about 787.5 billion U.S. dollars. Contributing to the economic output of franchise establishments in the United States, were about 8.43 million people who worked for a franchise business.

Leading U.S.-based franchises

The most famous yet most lucrative U.S. based franchise is McDonald’s, bringing in over 96 billion U.S. dollars in sales. Following McDonald’s was 7-Eleven, collecting 86 billion U.S. dollars in sales. In 2018, McDonald’s generated 11 billion U.S. dollars in revenue from its franchised restaurants. The first step in contributing to McDonald’s economic franchise success is the startup cost.

Number of franchise establishments in the United States from 2007 to 2020*

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Sources

Release date

2020

Region

United States

Survey time period

2007 to 2019

Supplementary notes

* All figures are estimates.
** Forecast
Values up to 2016 were taken from previous editions.

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