In 2023, there was an estimated 806,270 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 United States
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 2022, the economic output of franchise establishments in the United States was about 825 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 and most lucrative U.S. based franchise is McDonald’s, bringing in 118 billion U.S. dollars in sales in 2022. Following McDonald’s was 7-Eleven, where roughly 95 billion U.S. dollars was made in sales. In 2023, McDonald’s generated around 65.6 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 2023 with a forecast for 2024
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International Franchise Association, & FRANdata. (February 13, 2024). Number of franchise establishments in the United States from 2007 to 2023 with a forecast for 2024 [Graph]. In Statista. Retrieved December 10, 2024, from https://www.statista.com/statistics/190313/estimated-number-of-us-franchise-establishments-since-2007/?_hsenc=p2ANqtz-94Ba_-M5XIu7ZgpKoJsg7As8ZmDgKkGuaEVEU7_7OQwWi-An5IhS40acBQADyWzKcf2TBw&utm_medium=email&utm_source=hs_email
International Franchise Association, und FRANdata. "Number of franchise establishments in the United States from 2007 to 2023 with a forecast for 2024." Chart. February 13, 2024. Statista. Accessed December 10, 2024. https://www.statista.com/statistics/190313/estimated-number-of-us-franchise-establishments-since-2007/?_hsenc=p2ANqtz-94Ba_-M5XIu7ZgpKoJsg7As8ZmDgKkGuaEVEU7_7OQwWi-An5IhS40acBQADyWzKcf2TBw&utm_medium=email&utm_source=hs_email
International Franchise Association, FRANdata. (2024). Number of franchise establishments in the United States from 2007 to 2023 with a forecast for 2024. Statista. Statista Inc.. Accessed: December 10, 2024. https://www.statista.com/statistics/190313/estimated-number-of-us-franchise-establishments-since-2007/?_hsenc=p2ANqtz-94Ba_-M5XIu7ZgpKoJsg7As8ZmDgKkGuaEVEU7_7OQwWi-An5IhS40acBQADyWzKcf2TBw&utm_medium=email&utm_source=hs_email
International Franchise Association, and FRANdata. "Number of Franchise Establishments in The United States from 2007 to 2023 with a Forecast for 2024." Statista, Statista Inc., 13 Feb 2024, https://www.statista.com/statistics/190313/estimated-number-of-us-franchise-establishments-since-2007/?_hsenc=p2ANqtz-94Ba_-M5XIu7ZgpKoJsg7As8ZmDgKkGuaEVEU7_7OQwWi-An5IhS40acBQADyWzKcf2TBw&utm_medium=email&utm_source=hs_email
International Franchise Association & FRANdata, Number of franchise establishments in the United States from 2007 to 2023 with a forecast for 2024 Statista, https://www.statista.com/statistics/190313/estimated-number-of-us-franchise-establishments-since-2007/?_hsenc=p2ANqtz-94Ba_-M5XIu7ZgpKoJsg7As8ZmDgKkGuaEVEU7_7OQwWi-An5IhS40acBQADyWzKcf2TBw&utm_medium=email&utm_source=hs_email (last visited December 10, 2024)
Number of franchise establishments in the United States from 2007 to 2023 with a forecast for 2024 [Graph], International Franchise Association, & FRANdata, February 13, 2024. [Online]. Available: https://www.statista.com/statistics/190313/estimated-number-of-us-franchise-establishments-since-2007/?_hsenc=p2ANqtz-94Ba_-M5XIu7ZgpKoJsg7As8ZmDgKkGuaEVEU7_7OQwWi-An5IhS40acBQADyWzKcf2TBw&utm_medium=email&utm_source=hs_email