You probably have a few questions running through your head about how many franchise organizations are there in the USA. Why is it so important to know this before becoming a franchise owner? The reason is that it determines if you will be able to find a franchise that meets your needs and starts your success story.
Franchising in the U.S. allows companies to put a license on their brand and distribute it among smaller entities. These small entities then work under the umbrella of the parent brand. The Franchise business model has gained momentum for the past few decades. It provides a unique, asset-light model to the franchisor for expansion, and an existing successful formula to individuals with entrepreneurial aspirations.
Franchising actually dates back to the Middle Ages when European monarchies allowed noblemen and churches to manage the crown’s land. These noblemen were in charge of protecting the land and collecting taxes on them. The nobleman granted local farmers the right to use land in exchange for royalties. But this was a franchise of political activity. Modern-day franchising started in the middle of the 19th century in Germany with breweries setting up contracts with tavern owners to sell their beer exclusively to travellers.
In the United States, the first franchising was in 1851 when Isaac Singer sold salespeople the right to sell his sewing machines to customers for their use. But the real boom in this industry came after World War II when people needed many more new products and services.
Though franchising is a popular method of working which allows you to do business for yourself but not by yourself, it still has its share of risks involved. Fransmart has done in-depth research on more than 100 franchise brands, and if you are interested in owning a franchise, our team of experts will guide you in your franchising journey and tell you why you should not buy particular franchises.
What Do You Mean By Franchise Organizations?
A franchise company or franchise organization is an umbrella used to describe a parent company that licenses its offerings along with its brand name and operating model to individuals in return for a fee and royalties.
A franchise company or organization is an association of two parties:
- Franchisor: A franchisor is a company or organization that develops a business model licensed to prospective business entities.
- Franchisee: A franchisee is an individual or business entity that takes a business’s license by investing in it and sells its offerings to the public. The franchisee, in return, pays the franchisor an agreed amount of money.
What Do Franchise Company or Organizations Do?
A franchise company or organization creates a successful business model and markets it by creating a brand which it then licenses out to franchisees in different territories for growth. The franchisee, in return, gets the benefit of a recognized brand and successful product.
The three common types of franchise companies or organizations are:
- Job-Franchise Organizations: Job franchise organizations are the ones that get an individual the license to use the brand name of a company for its operations.
- Product Franchise Organizations: Product Franchise organizations get an individual a license to sell a brand’s product.
- Business Format Franchise Organization: Business format franchise organizations are the ones that we envision when we talk about a franchise organization. It works by providing turnkey solutions to individuals to start their businesses.
How Many Franchise Organizations are in the USA?
Franchising today is more significant than ever. Some of the most popular businesses and products are part of a global franchise. Go to a supermarket and pick any product, and there is a good chance that a franchise produces it. In fact, the possibility that the store is a part of a franchise network is also very likely.
There are an estimated 753,770 franchise organizations in the United States.
The U.S. Census Bureau report on franchising states that franchising business accounts for 10.5% of all companies with paid employees in 295 industries. The segment accounted for a whopping 1.3 trillion dollars of 7.7 trillion dollars total sales of these industries.
The highest number of franchise organizations is:
- Fast food restaurants or limited service restaurants -124,898
- Gas stations with convenience stores -33,991
- Full-service restaurants -30,130
By the output generated, the highest-grossing franchise organizations are:
- New car dealers -$687.7 billion
- Gas stations with convenience stores $131.1 billion
- Limited-service restaurants $112.6 billion
Some of the USA’s most popular Franchise organizations are:
- McDonald’s: McDonald’s is the most recognized franchise globally. The brand has more than 38,000 locations worldwide and employs nearly 2 million people.
- Subway: Subway actually has more locations than McDonald’s. It has more than 41,000 restaurants globally, which means that the brand has opened two new restaurants every single day from the day it opened in 1965. The company sells 7.6 million sandwiches every day.
- 7- Eleven: The first spot for the maximum number of locations goes to 7-Eleven, with 71,100 stores in 17 countries worldwide.
- Hertz Corporation: Hertz has a presence in more countries than any other franchise brand. It is truly a global brand with offices located in 150 countries worldwide.
- Marriott International: This hotelier has the top place in the hotel franchise industry, with as many as 516 properties across the globe. Marriott International has spent seven years in a row at the top of the hotel industry.
- Philadelphia Phillies: This professional baseball team is the oldest sports franchise in the United States.
- Anytime Fitness: Anytime Fitness is the first franchise represented in all seven continents of the world. By opening a studio on a cruise ship, they have established themselves in Antarctica; A place where no one else dared to go.
One of the interesting facts about franchise companies is that out of the top 10 franchises, only three are not related to food.
More than 80% of the restaurants around the world are franchise-based.
The Biggest Franchise Organizations from other Industries
There has been a tidal wave of mergers and acquisitions in franchising. It might be challenging to keep track of the complicated lineages these days,
You can check out the most famous franchise organization, as well as some companies in the franchise network in the following industries:
- Home Service Industry
- Multiple Industries
- Beauty, Good Health and Fitness Industry
- Car Industry
- Care for Seniors Industry
- Cleaning Industry
- Printing, Copying, and Tech Industry
- Real Estate and Housing Industry
- Retailing Industry
List Of The Top 11 Franchise Organizations For 2022
Fransmart has made a list of the top 11 franchise organizations for 2022. These brands have the best combinations of financially rewarding and award-winning franchises with low risks. Contact us to see if any of these could be the franchise you would like to own!
| Top 10 Franchise Organization | |
| The Halal Guys | Click for more details |
| Taffer’s Tavern – Food & Spirits by Jon Taffer | Click for more details |
| Brooklyn Dumpling Shop | Click for more details |
| Curry up Now | Click for more details |
| Rise | Click for more details |
| Ikes’ Sandwich | Click for more details |
| Greek from Greece | Click for more details |
| Slap Fish | Click for more details |
| Pay More | Click for more details |
| Greek Express | Click for more details |
If you are interested in developing your franchise companies or buying a franchise, welcome to the franchise community. Contact Fransmart and join us now. Our association offers various benefits to our members.