In this article, we will take a look at the 20 biggest franchises in the world. If you wish to skip our detailed analysis of the key to franchise growth and see the top 5 franchises, head straight to the 5 Biggest Franchises In The World.
The world has witnessed the remarkable rise of franchises, a business model that has thrived for decades and propelled numerous brands to unprecedented heights. With their tried-and-true formula, these franchises have cemented their status as global behemoths, capturing the hearts and wallets of consumers worldwide.
From renowned fast-food empires to iconic retail giants, the most prominent franchises like Starbucks, McDonald’s, and The UPS Store, among others, have become synonymous with success, leveraging their devoted customer base, a distinct brand identity, and a proven blueprint for expansion. These powerhouses stand as a testament to the enduring allure and profitability of the franchise model, exerting their influence and dominating industries on a global scale.
Replication and Expansion: The Key to Franchise Growth
When it comes to growing a franchise, replication, and expansion are the keys to success. By replicating successful models and expanding into new markets, company owners can increase their reach and profitability. Replication not only ensures consistency but also maximizes profitability. Standardized procedures and practices streamline operations, which leads to reduced costs and increased income. According to recent financial statistics, franchises that use replication strategies have seen a 34% profit increase.
Expansion, on the other hand, opens up new growth opportunities. Franchises can explore new markets and product lines to stay ahead of the curve and adapt to changing consumer needs. By expanding into international markets, franchises can tap into the growing global economy and increase their revenue streams. Recent financial data shows that franchises that have expanded their reach have seen a 45% increase in profits.
International Influence: Franchises Making a Global Impact
In today’s global economy, franchises are a lucrative business model. McDonald’s, for example, reported a revenue of $23.18 billion in 2022, a testament to its success on a global scale. Similarly, Starbucks reported a net income of $3.28 billion in 2022, indicating its popularity among coffee lovers worldwide. These figures demonstrate the financial rewards of tapping into the global market. With the potential to expand their customer base and increase revenue growth, these top franchises in the world are set to continue significantly impacting the worldwide economy.
According to the International Franchise Association (IFA), the franchise industry has been experiencing consistent growth in recent years. In 2021, the total economic output of the franchise sector was estimated to be $787.5 billion in the United States alone. The franchise industry also employed over 8.3 million people, significantly contributing to job creation.
When it comes to profitability, franchising can offer attractive financial opportunities for franchisees and franchisors. Franchise profitability is predominantly influenced by average sales, typically falling between $400,000 and $1.4 million annually for traditional brick and mortar franchises, as stated by the American Franchise Academy.
However, financial performance can differ based on factors such as industry, location, and the specific franchise system. Each franchise’s profitability may vary, so it’s crucial to consider these individual factors when assessing potential returns on investment.
Navigating the Financial Landscape of Franchise Investments
Franchises, often counted among the largest and most profitable businesses in the world, offer enticing prospects for financial success. Opening a franchise entails a significant financial commitment, including franchise fees and setup expenses that vary depending on the franchise. Initial investments can range from modest amounts, such as $24,000 for Century 21 Real Estate, to substantial sums like the $118 million required for a Marriott Hotel franchise.
Beyond the initial investment, franchisees bear ongoing financial responsibilities, including annual licensing fees and royalties paid throughout their business venture. These financial commitments are integral to the franchise model, ensuring the necessary support from the franchisor while offering the potential for considerable returns to driven entrepreneurs.
With that out of the way, we move on to the list of the biggest franchises in the world. Let’s go!
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Our Methodology
We have compiled a list of the largest franchises in the world, ranking them based on their annual revenues for the year 2022. We’ve used 2020 revenue for Dunkin Donut since we could not find an accurate figure for 2022, nor a reasonable estimate. Speaking of which, for private entities on our list, we’ve estimated their revenues based on multiple sources such as zippia and zoominfo, among others. If the sources disagreed with their estimates widely, we estimated the companies’ revenues based on public companies in the same industry that had the same size as those companies.
Here is our list of the Biggest Franchises In The World.
20 Biggest Franchises In The World:
20. Pizza Hut
Estimated Revenue 2022: $1.20 billion
Pizza Hut, a popular pizza chain, demonstrated strong financial performance with an estimated $1.20 billion in revenue in 2022. The company’s focus on innovation and customer satisfaction, such as introducing new menu items and investing in technology, has contributed to their success. Pizza Hut is owned by YUM! Brands, Inc. (NYSE:YUM), along with KFC and Taco Bell, among others. However, Pizza Hut has been on a downward trajectory, with its market share dipping lower than 14%, compared to when it was at the height of its popularity in 1995, when its market share was a whopping 25%, as reported by Wolf of Franchises.
In the YUM! Brands, Inc. (NYSE:YUM)’s quarterly earnings report released in February, 2023, Pizza Hut’s sales were only up 1% relative to the previous quarter, failing to align with analysts’ estimates of 1.73%.
19. Dunkin Donuts
Revenue 2020: $1.25 billion
Dunkin Donuts, a renowned and beloved brand in the U.S., has captivated customers with its delectable coffee, breakfast sandwiches, and various donut choices. Founded in 1950, Dunkin Donuts has expanded globally, boasting over 11,000 locations worldwide. The franchise’s commitment to quality and customer service has solidified their reputation.
With a diverse menu and innovative marketing, Dunkin Donuts remains a leader in the fast-food industry. Financially, the company reported impressive figures, with $1.25 billion in total revenue in 2020 , affirming its ongoing success and popularity among consumers.
18. KFC
Estimated Revenue 2022: $1.82 billion
KFC, a renowned fast-food chain, maintains its position as a top industry brand. KFC’s financial success is evident, with an estimated revenue of $1.82 billion in 2022 and a net income of $13.1 million in 2021. KFC beat analyst expectations in same-restaurant sales in the YUM! Brands, Inc. (NYSE:YUM)’s February earnings report by 0.16%. The sales were up 5% relative to the previous quarter.
KFC is a significant employer in the fast food industry, operating over 55,000 restaurants worldwide and employing over 800,000 people. The company’s success is attributed to offering high-quality, affordable food and implementing effective marketing strategies.
17. Burger King
Estimated Revenue 2022: $1.89 billion
In recent years, Burger King, a renowned global fast-food chain owned by Restaurant Brands International (NYSE:QSR), has experienced steady revenue growth. In 2022, Burger King had a reported revenue of $1.89 billion, marking a 7% increase from the previous year. These impressive financial results highlight the success of Burger King’s strategies, such as menu expansion and enhancing the customer experience.
16. Taco Bell
Estimated Revenue 2022: $2.0 billion
Taco Bell has been a popular fast-food chain for many years, known for its affordable and tasty Mexican-inspired cuisine. The company has seen steady growth over the past decade regarding financial statistics. In 2022, Taco Bell’s revenue was $2.0 billion. With its continued success and expansion, it’s clear that Taco Bell is here to stay in the fast food industry.
15. The Wendy’s Company (NASDAQ:WEN)
Revenue 2022: $2.1 billion
The Wendy’s Company (NASDAQ:WEN) is a fast-food chain that has been in business since 1969. It is known for its burgers, fries, and frosty. As of 2022, the company has over 7,000 locations worldwide and employs 14,500 people. In terms of financials, The Wendy’s Company (NASDAQ:WEN) reported a revenue of $2.1 billion in 2022, a 10.46% increase from the previous year.
The company’s net income for the same period was $177.4 million. Wendy’s has also been investing in technology to improve its operations and customer experience, including implementing mobile ordering and delivery options. The Chief Development Officer Of Wendy’s. Abigail Pringle said that:
“We’re a 52-year-old brand, so we’ve had folks that have been in the system for a long time, and we’ve gone through a lot of succession planning. We have next generation franchisees coming into the system, but we’ve also been actively recruiting new franchisees. And we’re now accelerating that”.
14. Papa John’s International, Inc. (NASDAQ:PZZA)
2022 Revenue: $2.1 billion
Papa John’s International, Inc. (NASDAQ:PZZA), a global pizza chain operating for over 36 years, has expanded to over 5,000 locations in 45 countries, solidifying its position as one of the largest pizza chains worldwide. Despite the challenges of the COVID-19 pandemic, Papa John’s reported $2.1 billion in revenue, in 2022.
The company’s net income also showed growth from the previous year, reaching $67.77 million. Papa John’s International, Inc. (NASDAQ:PZZA)’s success can be attributed to its digital channels and partnerships with third-party delivery services, allowing customers to order through its mobile app and website conveniently.
13. Interim Healthcare
Estimated 2022 Revenue: $2.5 billion
Interim Healthcare is a growing company with $2.5 billion in revenue as of 2022. Interim healthcare agencies swiftly adapt to changing patient needs and staffing requirements, reducing overall expenses. They also alleviate pressure on emergency rooms by providing cost-effective care in alternative settings. As healthcare costs rise, interim healthcare offers a viable solution for organizations seeking to balance quality and affordability.
12. Culver’s
Estimated 2022 Revenue: $3.2 billion
Culver’s, a thriving restaurant-chain business, has experienced impressive financial growth recently. With consistent revenue growth, the company reported revenue of $3.2 billion in 2o22, Culver’s has expanded its reach with over 900 restaurants across 26 U.S. states. The company’s exceptional customer service and high-quality food have been key to its success.
11. Tim Hortons
Estimated 2022 Revenue: $3.2 billion
Tim Hortons, a highly successful fast-food chain, operates over 4,000 locations in Canada and the United States, generating annual revenues surpassing $3 billion. It is Renowned for its coffee, donuts, and extensive breakfast and lunch options, Tim Hortons excels in quality, affordability, and customer service.
Tim Hortons is set for continued success as it expands its operations globally. The company recently made its debut in Pakistan, and achieved a remarkable milestone by breaking its own record for highest sales in its 61-year history with the opening of the first outlet in Lahore. This accomplishment reflects Tim Hortons’ growing popularity and signals promising opportunities for future achievements.
10. Domino’s Pizza, Inc. (NYSE:DPZ)
2022 Revenue: $4.5 billion
Despite the pandemic, Domino’s Pizza, Inc. (NYSE:DPZ), a global pizza chain with over 17,000 locations, experienced significant growth in 2022. The company’s success is evident with a 6.9% increase in global retail sales and $4.5 billion in total revenue. Domino’s Pizza, Inc. (NYSE:DPZ) has invested in technology, making 70% of U.S. sales digital in 2020. The company continues to innovate with AI-powered chatbots and voice ordering. Furthermore, Domino’s is committed to sustainability and social responsibility through environmental initiatives and sustainable packaging.
9. Ace Hardware Corporation
Estimated 2022 Revenue: $9.2 billion
Ace Hardware Corp is among the biggest franchises in the world. It is a leading hardware and home improvement retailer, achieved remarkable financial success in 2022. With a net income of $340.6 million and an estimated revenue of $9.2 billion in 2022, the company’s strong market position and dedication to quality products and services are evident.
8. Chick Fil A
Estimated 2022 Revenue: $6.3 billion
Chick-fil-A, a beloved fast-food chain, achieved remarkable success with $6.3 billion in revenue in 2022. Their delectable food, exceptional service, and community involvement contribute to their popularity. With over 2,600 U.S. locations and ongoing expansion, Chick-fil-A’s commitment to customer satisfaction ensures its continued prosperity.
7. Subway
Estimated 2022 Revenue: $11 billion
Subway, a renowned fast-food chain, boasts a vast global presence with over 35,000 locations worldwide. In 2022, the company had an estimated revenue of $11 billion in 2022. Despite the challenges posed by the COVID-19 pandemic, Subway continued to grow. The company stays attuned to evolving consumer preferences and industry trends through continuous menu and operational enhancements.
6. Marriott International, Inc. (NASDAQ:MAR)
2022 Revenue: $20.77 billion
Marriott International, Inc. (NASDAQ:MAR), a global hospitality leader, operates over 9,000 properties across 131 countries and stands sixth among the biggest franchises in the world. In 2022, the company reported a revenue of $20.77 billion and a net income of $2.35 billion. Despite challenges from the pandemic, Marriott International, Inc. (NASDAQ:MAR) has implemented strategies for recovery, gradually improving its performance. The company’s focus on diversity, equity, and inclusion is evident through initiatives like the “Marriott Bonvoy” loyalty program and recognition for promoting gender diversity.
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Disclosure. None: The 20 Biggest Franchises In The World is originally published on Insider Monkey.
