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. More notably, the franchise industry is commonly known for its fast food sector. In 2021, the economic output of franchise establishments in the United States was about 790 billion U.S. dollars. Contributing to the economic output of franchise establishments in the United States, were more than 8 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 93 billion U.S. dollars in sales. Following McDonald’s was 7-Eleven, collecting 92 billion U.S. dollars in sales. In 2021, McDonald’s generated around 12.5 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.