Raphael Bohne
Research expert covering professional services
Franchising in the U.S. - statistics & facts
The franchising industry in the United States includes arrangements where a company licenses the use of their brand, products and processes to a separate business, which then operate under the name of the larger company. This practice is common in a variety of segments across the U.S. economy and encompasses some of the most well-known companies in the world. In 2023, it was estimated that there will be some 805,500 franchise establishments in the United States, with an economic output estimated to be roughly 860 billion U.S. dollars. The the number of employees working at these establishments was predicted to reach almost 8.7 million people in the same year. The largest business line of the franchising industry has consistently been quick service restaurants, with retail food, products and services the second most lucrative.
Leading franchising brands
In terms of revenue, the leading U.S-based franchise in the United States was McDonalds, where over 118 billion U.S. dollars was generated in sales worldwide in 2023. The company was followed by other such recognizable names as 7-Eleven, KFC, and Burger King. The largest franchise in terms of the number of establishments was Subway, however this number has been falling year-on-year since 2015.
Leading franchising brands
In terms of revenue, the leading U.S-based franchise in the United States was McDonalds, where over 118 billion U.S. dollars was generated in sales worldwide in 2023. The company was followed by other such recognizable names as 7-Eleven, KFC, and Burger King. The largest franchise in terms of the number of establishments was Subway, however this number has been falling year-on-year since 2015.
Expect high costs for opening a franchise
The costs of opening a franchise in the United States are substantial. The initial investment for a McDonalds franchise in 2022 stood at around 2.5 million U.S. dollars, of which the majority was for signs, seating, equipment and décor. Similarly, costs for a KFC franchise at that time were around 3.2 million U.S. dollars, and 4.2 million U.S. dollars for Burger King. Unsurprisingly, costs for a Marriot Hotel franchise were significantly higher, totaling over 118 million dollars.
