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 2024, it was estimated that there will be some 831,000 franchise establishments in the United States, with an economic output estimated to be roughly 897 billion U.S. dollars. The the number of employees working at these establishments was predicted to reach almost 8.8 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 129.5 billion U.S. dollars was generated in sales worldwide in 2024. The company was followed by other such recognizable names as 7-Eleven, KFC, and Burger King. The United States has a far greater number of franchised establishments than any other country. The number of Subway stores in the United States, for example, outnumbered those in Canada by almost 17,000.
The U.S. franchising industry has looked stronger than ever following a recent noticeable recovery. This proves the sector has an ability to bounce back following adverse circumstances, with 2025 looking like the strongest year on record for the industry.
Leading franchising brands
In terms of revenue, the leading U.S-based franchise in the United States was McDonalds, where over 129.5 billion U.S. dollars was generated in sales worldwide in 2024. The company was followed by other such recognizable names as 7-Eleven, KFC, and Burger King. The United States has a far greater number of franchised establishments than any other country. The number of Subway stores in the United States, for example, outnumbered those in Canada by almost 17,000.
Expect high costs for opening a franchise
The costs of opening a franchise in the United States are substantial. The initial franchise investments for McDonald's in 2023 stood at around 2.5 million U.S. dollars, of which the majority was for signs, seating, equipment and décor. Similarly, the initial franchise investments for Kentucky Fried Chicken at that time were around 3.8 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.The U.S. franchising industry has looked stronger than ever following a recent noticeable recovery. This proves the sector has an ability to bounce back following adverse circumstances, with 2025 looking like the strongest year on record for the industry.
