The franchising industry is powering economic growth throughout the world, with projections suggesting a slowdown isn’t due any time soon. And it’s not just the USA’s franchisors that are expanding — emerging markets such as China and India are quickly becoming franchising powerhouses. If you are considering buying a franchise, it’s a good idea to ensure you fully understand the industry before you dive in headfirst.
The best way to mitigate the risks associated with franchising is to do your homework and build your knowledge. To assist you in your franchising ventures, I’ve compiled a list of the latest franchise industry stats for 2025. Whether you are looking for some data to help drive an informed decision or simply want to learn about the franchise industry, this post has everything you need to know.
General Franchise Statistics
New to the industry and determining if buying a franchise is a good choice for you? These stats are a good place to start.
1. The personal services franchise industry generated $42 billion in 2023, recovering to pre-pandemic levels. In 2024, it was predicted to generate $46 billion. (Statista)
2. In 2024, the global franchise market surpassed $890 billion, and the growth rate is set to average nearly 10% per annum over the coming years. (Forbes)
3. 86% of franchises report that rising costs have impacted their business. This figure shows a slight decrease from the previous year. (International Franchise Association (IFA))
4. Over half of the franchise industry is comprised of the retail, real estate, residential, healthcare, automotive, and business services sectors. (IFA)
5. The one-year success rate for a new franchise is 6.3% higher than it is for independent businesses. (OneUpWeb)
6. The number of franchises in the USA will increase annually by around 2% in 2024 or around 821,000 locations. (IFA)
7. The global franchise market is projected to grow at a rate of 9.58% a year until 2027. (Yahoo Finance)
Global Franchise Statistics
The franchise industry contributes significantly to economic output in many countries. While the USA is a major player in the franchise industry, many other countries are gaining traction on the world stage.
8. There are currently more than 3,000 franchise brands in operation around the world. (Forbes)
9. The total economic output of all franchises was around $859 billion in 2023. (IFA)
10. The UK’s fast food franchise industry is set to generate GBP 12.7 billion in the financial year 2024-2025. (IBIS World)
11. Canada boasts the world’s second-largest franchise industry, contributing $120 billion to the national economy in 2024. The franchise industry is also the 12th largest contributor to Canada’s GDP. (Canadian Franchise Association)
12. France’s annual franchise sector turnover exceeds EUR 68 billion. Its franchise industry also employs nearly 800,000 people. (IFA)
13. Australia’s franchising industry currently has a low market share concentration, with four companies accounting for nearly a third of franchise revenue in 2024. (IBIS World)
14. 60% of Australia’s franchisors have been franchising for more than a decade. (Norton Rose Fulbright)
15. In 2023, there were 12,429 franchise brands in South Korea, achieving a 4.9% increase from the previous year. (Lexology)
16. India has over 4,600 brands, and around 300 new franchises are established per year (The Economic Times)
17. There are 6,000 franchise brands and over half a million franchise outlets in China. (Thailand Franchise & Business Opportunities)
18. KFC is the most popular American franchise in China, with more than 10,000 locations. (KFC)
19. There are more 7-Elevens in Japan than in any other country in the world, with more than 21,000 stores. (NY Times)
Franchise Statistics In The USA
While many developing countries boast booming franchise industries, the USA is still home to the majority of the world’s most successful franchise brands. Let’s dive into some specifics regarding the franchise industry in the USA.
20. The USA is home to over 806,000 franchises, according to the latest figures from 2023. (Statista)
21. Franchised establishments employ more than 8.5 million people in the USA. (Statista)
22. According to 2021 data from the U.S. Census Bureau, nearly 100% of new car dealerships are franchises. (U.S. Census Bureau)
23. Surprisingly, the COVID-19 pandemic had almost zero impact on the USA’s residential and commercial services franchise sector, which has steadily increased over the past decade and generated $57 billion in 2023. (Statista)
24. The business services franchise sector in the US grew by 30% between 2013 and 2019. After taking a hit during the pandemic, the industry recovered to pre-pandemic levels in 2023, generating $104 billion. (Statista)
25. In 2023, franchises contributed $860 billion to the US economy. (Statista)
26. Some of the highest-earning sectors contributing to the US franchise industry’s economic output include quick service restaurants ($275.1 billion), retail food, products, and services ($129.8 billion), business services ($99.4 billion), and lodging ($87.1 billion). The nation’s top ten franchise sectors also include commercial and residential services, full-service restaurants, real estate, and personal services. (Statista)
27. The top ten US states for franchise growth are Texas, Florida, Georgia, North Carolina, South Carolina, Tennessee, Maryland, Arizona, Colorado, and Virginia. (PR Newswire)
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Franchise Employment Statistics
Given the sheer size of the franchise industry both in the USA and abroad, it may not surprise you that franchise companies are a huge source of employment. According to most projections, the number of employees in franchises is expected to rise over the coming years. Let’s analyze the latest stats to see what that might look like:
28. In 2024, the business services sector was predicted to see a 1.8% increase in the number of franchised establishments, creating 32,000 new jobs. (IFA)
29. The franchise retail output sector was predicted to create an additional 40,000 jobs in 2024. (IFA)
30. While the lodging industry was predicted to see a growth of just 0.9% in 2024, it was projected to boost employment by 723,000. (IFA)
31. The number of people employed in the USA’s business services franchise establishments stood at 635,748 last year. (Statista)
32. The number of people employed in personal services franchises is 580,234. (Statista)
33. The southeast region of the USA employs 2.6 million people and accounts for nearly a third of all franchised establishments in the nation. (OneUpWeb)
34. The franchise industry in Australia employs over 565,500 people. (Franchise Council of Australia)
35. South Korea’s franchise industry had an estimated 1,012,000 employees as of 2024, an increase of 69,000 (7.4%) from the previous year. (Chosun Biz)
36. There are over 1.1 million people working in retail franchises in the USA. (Statista)
37. In the USA, employment in franchising was predicted to increase by 2.6% to a total of 8,886,555 employees by the end of 2024. (IFA)
38. A recent survey of franchisors found that 80% of respondents struggle with staff shortages. (IFA)
39. Compared to independently run businesses of a similar size, franchises create an average of 2.3 times more jobs. (OneUpWeb)
40. In 2024, the franchise industry employed nearly 9 million workers, a 221,000 job increase from the previous year (IFA)
Fast Food Franchising Statistics
Fast food franchises are one of the most important franchise industries, accounting for a significant portion of units. This is particularly true in the USA (where more than a third of the population eats fast food per day). Here are some essential fast food franchising statistics for 2025:
41. There were over 195,000 fast food franchises in the USA in 2023. (Statista)
42. In 2023, McDonald’s earned a staggering total profit of $15.4 billion from its global network of franchises. Just over $5.5 billion of that came through royalties, while the remaining $9.84 billion was derived from rental payments. (Statista)
43. In sales, McDonald’s generated over $118 billion in 2022. (Statista)
44. 7-Eleven generated revenues of $93.5 billion across its global network of stores in 2022. (Statista)
45. The median revenue for a McDonald’s franchise in 2023 was nearly $4 million, which reflects a 4% increase from 2022. (Vetted Biz)
46. Inflation has disproportionately impacted the food industry, which accounts for three of the top five sectors most affected. (IFA)
47. The average initial cost to open a KFC franchise in the US is $3.7 million. (Statista)
48. The average initial cost to open a Burger King is over $4.5 million. (Statista)
49. It costs an average of $2.5 million to open a McDonald’s franchise, with $1.6 million of that going on décor, seating, and signage. (Statista)
50. Subway has over 25,000 outlets spread across the world – impressive given the company was established 11 years after McDonald’s. (Statista)
51. 37% of Americans purchase food from fast food restaurants on a daily basis. (Zippia)
Franchise Owner Statistics
Interested in finding out how franchise owners are currently performing in the growing franchising industry? These facts and figures will provide you with some key insights to keep in mind going into 2025:
52. According to the IFA’s 2024 Franchisor Survey, 80% of franchisors own franchises with unfulfilled job vacancies. (IFA)
53. 34% of franchisors report their biggest business challenge was cost and quality of labor. (IFA)
54. Only 9% of businesses reported inflation as being a business challenge, down from 20% in 2023. (IFA)
55. 24% of franchisees remain with their franchises for between one and two years. An additional 21% remain at their franchise for three to seven years. (Zippia)
56. Compared to many other nations, women play a significant role in the Australian franchise industry. Around 34% of all franchised establishments are owned by women. (Franchise Council of Australia)
57. The average age of a franchise owner is 44 years old. (Zippia)
Franchise Investment Statistics
It’s no secret that franchising involves a hefty investment. Franchisees must pay an initial franchise fee to the franchisor as well as ongoing royalties. That said, the investment does not stop at the fees. There are many other costs to consider when purchasing a new franchise. Let’s take a look at some of the top investment stats for franchises:
58. Here are the average initial investment fees to start a franchise for a leading fast food chain in the USA:
- KFC: $1,852,825 to $3,771,550
- Burger King: $2,010,600 to $4,670,900
- Subway: $$238,623 to $536,745
- Pizza Hut: $782,000 to $2,053,500
- Wendy’s: $1,108,474 to $2,828,707
- Taco Bell: $1,584,750 to $3,980,200
59. It costs, on average, between S$30,000 and S$150,000 to open a franchise in Singapore. (Top Franchise Asia)
60. South Africa’s franchising industry grew by 36% from 2019 to 2023. (DHL)
61. The franchise market across Africa is valued at nearly $94 billion, and there’s a $7.51 billion financing gap. (African Export-Import Bank)
62. McDonald’s may be one of the world’s most successful franchises, but investing in one isn’t cheap. In 2024, the initial investment cost between $1.47 million and $2.64 million. (Investopedia)
63. Investing in a Marriott International in the USA costs an average of $416,300 per guest room in construction costs alone. (Statista)
64. In the USA, you must receive a Franchise Disclosure Agreement at least 14 days before signing the Franchise Agreement or paying the franchise fee. (Federal Trade Commission)
65. The royalty fees paid by the franchisee to the franchisor are typically between 4% and 12% of total revenue or gross sales, though that figure can reach 50% depending on the industry and brand. (Our Royalty Fees Study)
Franchising Future Trends
The franchise industry is here to stay, and you better believe that the future for franchises is bright. Here are some key trends to look out for in 2025 and beyond.
66. Some estimates suggest the franchise market will grow by $1.63 trillion between the years 2022 and 2027. (Yahoo Finance)
67. The top 5 franchise brands on Entrepreneur’s Franchise 500 list for 2025 are Taco Bell, Jersey’s Mike Subs, Dunkin’, Popeyes Louisiana Kitchen, and Ace Hardware (Entrepreneur)
68. If you’re searching for emerging franchise sectors, Entrepreneur has added eight franchise categories to its Franchise 500 list: Self-Pour Bars, Autism Treatment Services, Hawaiian Food, Hydraulic Hose Services, Mediterranean Food, Outdoor Space Construction, Pet Grooming, and Real Estate Investing. (Entrepreneur)
69. The franchise industry in India is set to grow by up to 35% per year until 2028, when it’s projected to generate revenues of up to USD 150 billion. It’s currently believed to be valued at over USD 50 billion, with regional and national brands dominating 84% of the industry. (Economic Times)
70. 60% of consumers prefer brands that demonstrate strong ethical and environmental practices. If you’re a franchisor, you might be more likely to expand your customer base this year by integrating green initiatives into your business operations. (Americas Franchising Group)
71. In 2025, the number of US franchise-owned units operating internationally is projected to surpass 50,000. (Americas Franchising Group)
72. US-owned franchises are expected to increase their global footprint by 12%. (Americas Franchising Group)
73. 40% of franchisors are expected to adopt AI-powered solutions in 2025 to streamline operational processes and enhance customer engagement. (Americas Franchising Group)
Use Statistics To Make Data-powered Franchise Decisions
There is a lot of potential in franchising. That said, it’s important to clearly understand the industry before diving headfirst into franchise ownership. Analyzing the statistics and trends of the franchise industry is a great way to make smart, data-driven decisions. Don’t leave any information to the imagination.
When it comes to researching franchises and understanding the industry, Franzy is your ultimate resource. As a one-stop shop for both franchisees and franchisors, Franzy takes the guesswork out of the process, offering in-depth insights and advanced tools to help you make smarter, more confident choices.
