Franchise Statistics 2026: 160+ Numbers on Growth, Costs, Owners and Franchise Agreements
By ClauseAudit Research · 168 statistics · 84 sources ·
What are the key franchise statistics for 2026?
The IFA forecasts 845,000 US franchise establishments in 2026, up 1.5% from 2025, producing $921.4 billion in economic output. Franchises are projected to employ 8.9 million people, 58.1% of them in quick-service restaurants. Across current disclosure documents the median royalty is 6% of sales, and 71.4% require binding arbitration.

- US franchise establishments forecast for 2026, up 1.5% from 2025 (2026 (forecast), International Franchise Association)
- 845,000
- Forecast US franchise economic output in 2026 (2026 (forecast), International Franchise Association)
- $921.4 billion
- Forecast franchise contribution to US GDP in 2026 (2026 (forecast), International Franchise Association)
- $558.4 billion
- People projected to work in US franchise businesses in 2026 (2026 (projection), International Franchise Association and FRANdata)
- 8.9 million
- Share of all US franchise workers employed by quick-service restaurants (2026 (projection), International Franchise Association and FRANdata)
- 58.1%
- Share of McDonald's restaurants worldwide run by independent franchisees (2025, McDonald's Corporation)
- 95%
- Share of current franchise disclosure documents requiring binding arbitration (FDDs issued 2025 to 2026, Franchise Consultants and Brokers (analysis of Minnesota CARDS FDD filings))
- 71.4%
This page collects more than 160 franchise statistics in twelve groups: industry size, employment, sector growth, restaurants, the largest brands, multi-unit ownership, owner demographics, costs and financing, success and turnover, disclosure law, disputes, and markets outside the US including India.
Most US figures come from the International Franchise Association and FRANdata outlook, Oxford Economics, SEC filings and company results, the FTC Franchise Rule and state franchise statutes, with analyses of franchise disclosure documents and court data labeled by publisher. Every number links to its source, and the data was checked on October 17, 2026.
US Franchise Industry Statistics: Establishments, Output and GDP
Franchising grows slowly but steadily in the US. These figures cover establishment counts, economic output, GDP contribution and where franchised businesses are concentrated.
- 845,000 franchise establishments are forecast to operate in the US in 2026, up 1.5% from 832,521 in 2025. (International Franchise Association, IFA Predicts Steady Growth for Franchising in 2026 Economic Outlook, 2026 (forecast))
- Over 12,000 new franchised businesses are forecast to open in the US in 2026, according to the IFA outlook. (International Franchise Association, IFA Predicts Steady Growth for Franchising in 2026 Economic Outlook, 2026 (forecast))
- $921.4 billion is the forecast US franchise economic output for 2026, up 1.6% from $907.3 billion in 2025. (International Franchise Association, IFA Predicts Steady Growth for Franchising in 2026 Economic Outlook, 2026 (forecast))
- $558.4 billion is the forecast franchise contribution to US GDP in 2026, up from $549.9 billion in 2025. (International Franchise Association, IFA Predicts Steady Growth for Franchising in 2026 Economic Outlook, 2026 (forecast))
- 1.1% was the estimated growth in US franchise output in 2025, when output passed $900 billion, down from 2.2% growth in 2024. (International Franchise Association and FRANdata, 2026 Franchising Economic Outlook, 2025 (estimate))
- 788,683 US franchise establishments operated in 2022, the starting point of the IFA and FRANdata series that projects 845,009 for 2026. (International Franchise Association and FRANdata, 2026 Franchising Economic Outlook, 2022)
- Nearly 30.0% of all US franchised businesses are in the Southeast, the largest region for franchising, with output forecast at $274.9 billion in 2026. (International Franchise Association and FRANdata, 2026 Franchising Economic Outlook, 2026 (forecast))
- 2.5% is the forecast 2026 growth in Southwest franchise establishments, the fastest of any US region, taking the total past 122,000 units. (International Franchise Association and FRANdata, 2026 Franchising Economic Outlook, 2026 (forecast))
- About 86,000 franchised establishments are forecast in Texas in 2026, growing 2.6%, making it the top state for franchising. (International Franchise Association and FRANdata, 2026 Franchising Economic Outlook, 2026 (forecast))
- 47% of US franchise brands are relatively small, operating 25 locations or fewer. (Oxford Economics for the International Franchise Association Foundation, The Value of Franchising, 2024)
- 52% of franchise brands are local brands, while iconic national brands make up just 15% of all franchise brands. (Oxford Economics for the International Franchise Association Foundation, The Value of Franchising, 2024)
- 1.4 times the average sales of non-franchised businesses is what franchised businesses report, based on the Census Bureau's 2023 Annual Business Survey. (Oxford Economics for the International Franchise Association Foundation, The Value of Franchising, 2022 (2023 ABS))
- $787.5 billion was the economic output of US franchise establishments in 2019, according to a 2021 Oxford Economics study. (Oxford Economics, The Value of Franchising (2021 study), 2019)
- Nearly 300 industries with franchises, such as fast-food restaurants, are covered by the Census Bureau's 2017 Economic Census Franchise Statistics report, released in 2021. (U.S. Census Bureau, Census Bureau Releases New Franchise Statistics Report From the 2017 Economic Census, 2017 (released 2021))
- 9.8% fall in franchise-affiliated establishments between the 2007 and 2012 Economic Censuses was partly a measurement issue, a 2019 NBER paper found. (National Bureau of Economic Research, Automating Response Evaluation for Franchising Questions on the 2017 Economic Census (NBER Working Paper 25818), 2007 to 2012 (2019 study))
Figure 1: US franchise establishments, 2022 to 2026
Chart data
| Label | Value |
|---|---|
| 2022 | 788,683 |
| 2023 | 808,911 |
| 2024 | 821,837 |
| 2025 (est.) | 832,521 |
| 2026 (proj.) | 845,009 |
Franchise Employment Statistics
Franchise businesses are projected to employ nearly 8.9 million people in 2026. This section covers jobs by sector, pay benchmarks, labor cost pressure and the no-poach clauses once common in franchise agreements.
- 8.9 million US franchise businesses are projected to employ nearly 8.9 million people in 2026, a 1.8% increase on 2025 (forecast). (International Franchise Association and FRANdata, 2026 Franchising Economic Outlook, 2026 (projection))
- 0.6% Franchise employment grew just 0.6% in 2025 to an estimated 8.7 million-plus jobs, the slowest growth in the outlook's 2022 to 2026 series. (International Franchise Association and FRANdata, 2026 Franchising Economic Outlook, 2025 (estimate))
- 156,000 Franchise businesses are forecast to add more than 156,000 employees across the US in 2026. (International Franchise Association and FRANdata, 2026 Franchising Economic Outlook, 2026 (projection))
- 58.1% Quick-service restaurants employ nearly 58.1% of all US franchise workers, the largest share of any franchise sector. (International Franchise Association and FRANdata, 2026 Franchising Economic Outlook, 2026 (projection))
- 57,000 Child services franchises are expected to create about 57,000 new jobs in 2026, lifting sector employment to roughly 244,000. (International Franchise Association and FRANdata, 2026 Franchising Economic Outlook, 2026 (projection))
- 17.3% and 14.9% Health and wellness and quick-service restaurants account for 17.3% and 14.9% of projected 2026 franchise job gains, behind child services. (International Franchise Association and FRANdata, 2026 Franchising Economic Outlook, 2026 (projection))
- Over two million More than two million people work in McDonald's franchised restaurants worldwide, according to the company's 2025 annual report. (McDonald's Corporation (SEC filing), McDonald's Corporation Annual Report on Form 10-K, fiscal 2025, Year-end 2025)
- 3,855,900 The US had 3,855,900 fast food and counter worker jobs in 2025, the core occupation in franchised quick-service restaurants. (U.S. Bureau of Labor Statistics, Occupational Outlook Handbook: Food and Beverage Serving and Related Workers, 2025)
- $15.24 per hour Food and beverage serving and related workers earned a median $15.24 per hour ($31,710 a year) in May 2025. (U.S. Bureau of Labor Statistics, Occupational Outlook Handbook: Food and Beverage Serving and Related Workers, May 2025)
- $20.00 per hour California requires covered fast food chains with at least 60 establishments nationwide, franchisees included, to pay at least $20.00 an hour since April 1, 2024. (California Department of Industrial Relations, Labor Commissioner's Office, Fast Food Minimum Wage Frequently Asked Questions, Since April 1, 2024)
- 57% 57% of franchise brand leaders say rising costs, led by labor and inflation, are a significant limit on growth. (Franchise Business Review (hosted by the International Franchise Association), Franchising Outlook 2026: FBR Industry Report, 2026 outlook (survey late 2025))
- 33% Labor costs are the top growth constraint for large franchise brands, cited by 33% of their executives. (Franchise Business Review (hosted by the International Franchise Association), Franchising Outlook 2026: FBR Industry Report, 2026 outlook (survey late 2025))
- 25% Dissatisfaction with pay among franchise employees rose 25% year over year, even though wages increased by upwards of 7%. (Franchise Business Review (hosted by the International Franchise Association), Franchising Outlook 2026: FBR Industry Report, 2025)
- 58% of major franchisors' contracts included no-poaching-of-workers agreements in 2016 Franchise Disclosure Documents, a 2018 NBER study found. (National Bureau of Economic Research, Theory and Evidence on Employer Collusion in the Franchise Sector (NBER Working Paper 24831), 2016 (2018 study))
- 50 corporate chains had signed binding agreements with Washington's Attorney General to drop franchise no-poach clauses by January 2019, covering 100,000+ locations. (Washington State Office of the Attorney General, AG Ferguson's initiative to end no-poach clauses nationwide secures end to provisions at four more chains, January 2019)
Figure 2: US franchise employment by business line, 2026 projection (jobs)
Chart data
| Label | Value |
|---|---|
| Quick-service restaurants | 5.20M |
| Lodging | 1.16M |
| Full-service restaurants | 513K |
| Retail | 484K |
| Commercial and residential services | 451K |
| Health and wellness | 368K |
| Business services | 336K |
| Child services | 244K |
| Real estate | 86K |
| Automotive | 62K |
| Personal services | 46K |
Franchise Statistics by Industry Sector and Fastest-Growing Categories
Growth is uneven across franchise business lines. Service categories such as child services and home services are adding units faster than restaurants.
- 4.3% is the projected 2026 growth in US child services franchise establishments, the fastest of any franchise business line, to about 24,400 locations. (International Franchise Association and FRANdata, 2026 Franchising Economic Outlook, 2026 (forecast))
- $143.3 billion is the projected 2026 output of US commercial and residential services franchises after forecast growth of 3.2%. (International Franchise Association and FRANdata, 2026 Franchising Economic Outlook, 2026 (forecast))
- 11.8% of all US franchise establishments are health and wellness franchises, making it the third-largest franchised industry. (International Franchise Association and FRANdata, 2026 Franchising Economic Outlook, 2026 edition)
- 281,000 quick-service restaurant franchise establishments are projected for 2026, the largest franchise business line, after growth of only about 0.5%. (International Franchise Association and FRANdata, 2026 Franchising Economic Outlook, 2026 (forecast))
- 10.6% was the 2025 sales growth of fitness franchises in the Franchise Times Top 400, taking the segment to $12.5 billion. (Franchise Times, Franchise Times Top 400 Ranks the Biggest Brands in Franchising, 2025)
- $11.6 billion in 2025 sales came from home services franchises in the Franchise Times Top 400, up 7.1% year over year. (Franchise Times, Franchise Times Top 400 Ranks the Biggest Brands in Franchising, 2025)
- 32.5% was the combined 2025 sales growth of coffee franchises in the Franchise Times Top 400, reaching $3.5 billion. (Franchise Times, Franchise Times Top 400 Ranks the Biggest Brands in Franchising, 2025)
- 11 percent was the 2025 sales increase for oil change franchises in the Top 400, reaching $7.9 billion, while auto repair fell 5.1%. (Franchise Times, Franchise Times Top 400 Ranks the Biggest Brands in Franchising, 2025)
- $23.4 billion in 2025 sales came from Mexican-segment restaurant franchises in the Franchise Times Top 400, up 5.3% from the prior year. (Franchise Times, Franchise Times Top 400 Ranks the Biggest Brands in Franchising, 2025)
- $27.8 billion in 2025 sales were generated by real estate franchises in the Top 400, up 6.6% from $26.1 billion, despite fewer outlets. (Franchise Times, Real Estate Franchises Grow Sales With Fewer Outlets, According to Top 400 Data, 2025)
- 21 of the 23 new Planet Fitness clubs opened in Q2 2026 were franchisee-owned, bringing the system to 2,930 clubs. (Planet Fitness, Inc., Planet Fitness, Inc. Announces Second Quarter 2026 Results, Q2 2026)
- $1.4 billion in quarterly system-wide sales was reported by Planet Fitness for Q2 2026, an increase of $66.6 million. (Planet Fitness, Inc., Planet Fitness, Inc. Announces Second Quarter 2026 Results, Q2 2026)
- $572.9 million in store sales came from Valvoline's franchised oil-change stores in the quarter to June 30, 2026, up from $507.0 million a year earlier. (Valvoline Inc., Valvoline Inc. Reports Third Quarter Results (fiscal 2026), Quarter ended June 30, 2026)
Figure 3: Projected 2026 growth in US franchise establishments by business line (%)
Chart data
| Label | Value |
|---|---|
| Child services | 4.3% |
| Commercial & residential services | 3.2% |
| Retail | 2.3% |
| Health & wellness | 2.1% |
| Personal services | 2.0% |
| Business services | 1.5% |
| Full-service restaurants | 1.1% |
| Lodging | 1.1% |
| Quick-service restaurants | 0.4% |
| Real estate | 0.4% |
| Automotive | 0.2% |
Franchise Restaurant and Fast Food Statistics
Restaurants are the most visible part of franchising, and the largest chains are almost entirely run by franchisees. These figures come mostly from company filings and results.
- Approximately 95% of McDonald's restaurants worldwide are owned and operated by independent local business owners, across more than 45,000 locations in over 100 countries. (McDonald's Corporation, McDonald's Reports Fourth Quarter and Full Year 2025 Results, 2025)
- Over $139 billion in McDonald's global systemwide sales in 2025, up 7% (5% in constant currencies), most of it rung up at franchised restaurants. (McDonald's Corporation, McDonald's Reports Fourth Quarter and Full Year 2025 Results, 2025)
- 97% of Yum! Brands units (KFC, Taco Bell, Pizza Hut, Habit) were run by independent franchisees or licensees at December 31, 2025. (Yum! Brands, Inc. (SEC filing), Yum! Brands Form 10-K for fiscal year 2025, December 31, 2025)
- Over 95% of Restaurant Brands International's system restaurants (Burger King, Tim Hortons, Popeyes, Firehouse Subs) are franchised, across more than 33,000 restaurants. (Restaurant Brands International Inc., Restaurant Brands International Inc. Reports Fourth Quarter and Full Year 2025 Results, 2025)
- Approximately 96% of Domino's US stores were franchised as of December 28, 2025. (Domino's Pizza, Inc. (SEC filing), Domino's Pizza Form 10-K for fiscal year 2025, December 28, 2025)
- 754 independent US franchisees owned and operated Domino's 6,924 US franchise stores as of December 28, 2025. (Domino's Pizza, Inc. (SEC filing), Domino's Pizza Form 10-K for fiscal year 2025, December 28, 2025)
- 24 Domino's US franchisees each owned and operated more than 50 stores as of December 28, 2025. (Domino's Pizza, Inc. (SEC filing), Domino's Pizza Form 10-K for fiscal year 2025, December 28, 2025)
- $14.0 billion in Wendy's global systemwide sales in 2025, a 3.5% decrease, even as the predominantly franchised chain added 157 net new restaurants. (The Wendy's Company, The Wendy's Company Reports Fourth Quarter and Full Year 2025 Results and Provides 2026 Outlook, 2025)
- 5,978 Papa Johns restaurants were operating in 51 countries and territories as of June 28, 2026. (Papa John's International, Inc., Papa Johns Announces Second Quarter 2026 Financial Results, June 28, 2026)
- 280,811 franchised quick-service restaurant establishments are projected in the US in 2026, the largest franchise business line. (International Franchise Association and FRANdata, 2026 Franchising Economic Outlook, 2026 (forecast))
- Nearly 58.1% of all US franchise employment is in quick-service restaurants, which employ about 5.2 million people. (International Franchise Association and FRANdata, 2026 Franchising Economic Outlook, 2026 (forecast))
- $47.6 billion is the forecast 2026 output of US full-service restaurant franchises, up 2.0%, outpacing quick-service output growth for the first time since the pandemic. (International Franchise Association and FRANdata, 2026 Franchising Economic Outlook, 2026 (forecast))
- About a quarter of all US franchise establishments are fast-food chains; the other three-quarters span services, lodging, retail and more. (Oxford Economics for the International Franchise Association Foundation, The Value of Franchising, 2024)
- 93% of Jack in the Box's 2,136 quick-service restaurants (1,986 units) were franchised at its fiscal 2025 year-end. (Jack in the Box Inc. (SEC filing), Jack in the Box Inc. Form 10-K for fiscal 2025, September 28, 2025)
- Over 3,500 restaurants across 20 international markets made up Dine Brands' Applebee's, IHOP and Fuzzy's Taco Shop systems at the end of 2025. (Dine Brands Global, Inc. (SEC filing), Dine Brands Global fourth quarter and fiscal 2025 results (Form 8-K Exhibit 99.1), December 28, 2025)
Figure 4: Share of restaurants franchised at major US chains, 2025 (%)
Chart data
| Label | Value |
|---|---|
| KFC (global) | 99% |
| Pizza Hut (global) | 99% |
| Yum! Brands total | 97% |
| Domino's (US stores) | ~96% |
| Restaurant Brands Intl. (system) | >95% |
| McDonald's (global) | ~95% |
| Taco Bell (global) | 93% |
| Habit Burger & Grill | 22% |
Largest Franchise Brands and Systemwide Sales Statistics
The five largest franchise systems had combined sales of $335 billion in 2025. This section ranks the biggest systems and tracks fast-growing newcomers in restaurants, hotels and services.
- $335 billion The five largest brands on the 2026 Franchise Times Top 400 (McDonald's, 7-Eleven, KFC, Burger King, Chick-fil-A) had combined systemwide sales of $335 billion. (Franchise Times, Franchise Times Top 400 Ranks the Biggest Brands in Franchising, 2025 sales)
- $139.4 billion McDonald's global systemwide sales rose 7% to $139.4 billion in 2025, the largest of any franchise system. (McDonald's Corporation (SEC filing), McDonald's Corporation Annual Report on Form 10-K, fiscal 2025, 2025)
- $104.9 billion 7-Eleven ranked No. 2 on the 2026 Franchise Times Top 400 with an estimated $104.9 billion in 2025 sales, down 0.4%. (Franchise Times, Franchise Times Top 400 Ranks the Biggest Brands in Franchising, 2025)
- $46,762 million Restaurant Brands International's Burger King, Tim Hortons, Popeyes and Firehouse Subs systems generated $46,762 million in 2025 system-wide sales across 33,041 restaurants. (Restaurant Brands International Inc., Restaurant Brands International Inc. Reports Fourth Quarter and Full Year 2025 Results, 2025)
- $185,000 Average four-wall profitability for US Burger King franchisees fell to an estimated $185,000 per restaurant in 2025, from $205,000 in 2024. (Restaurant Brands International Inc., Restaurant Brands International Inc. Reports Fourth Quarter and Full Year 2025 Results, 2025)
- $14.0 billion Wendy's global systemwide sales fell 3.5% to $14.0 billion in 2025, with 7,397 restaurants open at year end. (The Wendy's Company, The Wendy's Company Reports Fourth Quarter and Full Year 2025 Results and Provides 2026 Outlook, 2025)
- 26.2 percent Circle K posted a 26.2% sales jump, the fastest growth in the Top 400's top 10, reaching $21.3 billion and No. 7. (Franchise Times, Franchise Times Top 400 Ranks the Biggest Brands in Franchising, 2025 sales)
- 52.9 percent Dave's Hot Chicken added 137 net restaurants in 2025, a 52.9% unit jump, ending the year at 396 locations. (Franchise Times, Franchise Times Top 400 Ranks the Biggest Brands in Franchising, 2025)
- $59 million Pet grooming brand Scenthound climbed 30 places to No. 418 on the Top 400 with $59 million in 2025 systemwide sales, up 45.7%. (Franchise Times, These 5 Breakout Brands Are Climbing the Top 400 Ranks, 2025 sales)
- more than 35,000 Subway's more than 35,000 restaurants worldwide are all independently owned and operated by thousands of franchisees. (Subway, Subway Newsroom: About Subway, 2026)
- 6.7% Hilton, whose system is mostly managed and franchised hotels, opened nearly 100,000 rooms in 2025 for 6.7% net unit growth, its biggest year of organic openings. (Hilton Worldwide Holdings Inc., Hilton Q4 + Full Year 2025 Results, 2025)
- more than 14,000 Dunkin', which calls itself the largest coffee and donuts brand in the US, has more than 14,000 restaurants in nearly 40 global markets. (Inspire Brands, Franchise with Dunkin', 2026)
- 3,056 Wingstop ended fiscal 2025 with 3,056 locations in 17 global markets. (Wingstop Inc., Own a Wingstop, Fiscal 2025)
- Over 8,300 hotels in about 100 countries make Wyndham the world's largest hotel franchising company by number of franchised properties. (Wyndham Hotels & Resorts, Wyndham Hotels & Resorts Reports Fourth Quarter Results, 2025)
- Over 7,500 hotels with more than 650,000 rooms in 50 countries and territories operate under Choice Hotels' franchised brands. (Choice Hotels International, Choice Hotels International Reports Fourth Quarter and Full-Year 2025 Results, December 31, 2025)
- 443 hotels were opened by IHG in 2025, a record, while it signed 694 more, taking its pipeline to 2,292 properties. (InterContinental Hotels Group PLC (SEC filing), IHG Annual Report and Form 20-F 2025 (Form 6-K), 2025)
- $1.6 billion in quarterly system-wide sales was reported by Driven Brands, up 5% year over year, with store count also up 5%. (Driven Brands Holdings Inc., Driven Brands Holdings Inc. Reports Second Quarter 2026 Results, Q2 2026)
Figure 5: Top 10 franchise brands by 2025 global systemwide sales (USD billions)
Chart data
| Label | Value |
|---|---|
| McDonald's | $139.4B |
| 7-Eleven | $104.9B |
| KFC | $36.4B |
| Burger King | $29.4B |
| Chick-fil-A | $24.8B |
| Ace Hardware | $24.1B |
| Circle K | $21.3B |
| Domino's | $20.1B |
| Taco Bell | $18.4B |
| Subway | $15.9B |
Multi-Unit Franchise Ownership Statistics
Most US franchised locations are now run by owners with more than one unit. These numbers show how far consolidation has gone and in which sectors.
- 19.3% of US franchisees operate more than one unit, according to FRANdata research as of 2025. (International Franchise Association and FRANdata, 2026 Franchising Economic Outlook, 2025)
- 58.8% of all US franchised locations are controlled by multi-unit franchisees, even though they are a minority of owners. (International Franchise Association and FRANdata, 2026 Franchising Economic Outlook, 2025)
- 27.8% of franchisees in service-based industries are multi-unit operators, compared with 19.2% in brick-and-mortar sectors. (International Franchise Association and FRANdata, 2026 Franchising Economic Outlook, 2025)
- 57% of 433,558 US franchised units analysed by FRANdata are operated by multi-unit owners, versus 43% by single-unit owners. (FRANdata (published by the International Franchise Association), MUBG 2026: Franchise Industry Ownership Landscape, 2026 analysis)
- 83% of the 142,081 franchised quick-service restaurant units are run by multi-unit owners, well above the 57% franchise-wide share. (FRANdata (published by the International Franchise Association), MUBG 2026: Franchise Industry Ownership Landscape, 2026 analysis)
- nearly two-thirds of the 9,821 child-related franchise units in the US are operated by single-unit owners, making it one of the least consolidated sectors. (FRANdata (published by the International Franchise Association), MUBG 2026: Franchise Industry Ownership Landscape, 2026 analysis)
- 211.11% was the growth in US franchise operators owning 50 or more units between 2010 and 2025, from 162 to 504 operators. (FRANdata (published by the International Franchise Association), There's No Stopping Multi-Unit Ownership! Insights into multi-unit franchise ownership growth, 2010 to 2025)
- more than 2,730 US units are run by Flynn Group, today's largest multi-unit operator, versus 1,143 units for 2010's leader NPC International (FRANdata). (FRANdata (published by the International Franchise Association), There's No Stopping Multi-Unit Ownership! Insights into multi-unit franchise ownership growth, 2010 vs 2025)
- 2,980 units are operated by Flynn Group across 44 states and 3 countries, according to the company's own website. (Flynn Group, Flynn Group company homepage, 2026)
- 1,945 Subway franchisees are multi-unit operators, the most of any brand, out of 5,605 Subway franchisees in total. (Franchising.com / Multi-Unit Franchisee Magazine, The 2026 Multi-Unit 50: A Snapshot of Scale (data: FRANdata), 2026)
- More than 83% of McDonald's franchisees operate multiple locations, with 1,630 multi-unit franchisees in the system, per FRANdata. (Franchising.com / Multi-Unit Franchisee Magazine, The 2026 Multi-Unit 50: A Snapshot of Scale (data: FRANdata), 2026)
- nine stores is roughly what the average Domino's US franchisee owned at the end of 2025, across 754 independent US franchisees. (Domino's Pizza, Inc. (SEC filing), Domino's Pizza Form 10-K for fiscal year 2025, December 28, 2025)
- 14 restaurants is the approximate average ownership of Wingstop's 186 domestic franchisees, whose average tenure is 16 years. (Wingstop Inc. (SEC filing), Wingstop Inc. Form 10-K for fiscal year ended December 27, 2025, December 27, 2025)
Figure 6: Growth in US multi-unit franchise operators by size band, 2010 to 2025 (% change in number of operators)
Chart data
| Label | Value (% change in number of operators) |
|---|---|
| 2-5 units | 18.56% |
| 6-10 units | 23.10% |
| 11-25 units | 33.44% |
| 26-50 units | 54.91% |
| 50+ units | 211.11% |
Franchise Owner Demographics: Women, Minority and Veteran Franchisees
Franchising is often a first business. These figures compare franchised and non-franchised businesses by owner group, using Census Annual Business Survey data and owner surveys.
- 26% of US franchised businesses were owned by people of color, compared with about 19% of non-franchised businesses (2023 Annual Business Survey). (Oxford Economics for the International Franchise Association Foundation, The Value of Franchising, 2022 (2023 ABS))
- 2.3 times the sales of Black-owned non-franchised businesses is what Black or African American-owned franchise firms earned on average. (Oxford Economics for the International Franchise Association Foundation, The Value of Franchising, 2022 (2023 ABS))
- 2.7 times the average sales of veteran-owned non-franchised businesses is what veteran-owned franchised businesses reported. (Oxford Economics for the International Franchise Association Foundation, The Value of Franchising, 2022 (2023 ABS))
- 2.1 times the employment of non-franchised businesses is the average employment of franchised businesses, per the Census Annual Business Survey. (Oxford Economics for the International Franchise Association Foundation, The Value of Franchising, 2022 (2023 ABS))
- 64% of surveyed US franchisees said their franchise was the first business they had ever owned. (Oxford Economics for the International Franchise Association Foundation, The Value of Franchising, 2025)
- 30% of surveyed franchisees said they would not own a business at all if they were not franchisees. (Oxford Economics for the International Franchise Association Foundation, The Value of Franchising, 2025)
- 36% of women franchisees said the franchise opportunity was critical to launching their small business, as did 38% of first-time owners. (Oxford Economics for the International Franchise Association Foundation, The Value of Franchising, 2025)
- 69% of women franchisees rated access to the franchise network as very important, compared with 67% of first-time business owners. (Oxford Economics for the International Franchise Association Foundation, The Value of Franchising, 2025)
- 5.4% of all US employer businesses (304,823 firms) were veteran-owned in 2021, a benchmark for franchise veteran ownership. (U.S. Census Bureau, Veteran-Owned Businesses (Annual Business Survey story), 2021)
- 7.1% of all US employer firms (406,086) were Hispanic-owned in 2021, according to the Census Bureau's Annual Business Survey. (U.S. Census Bureau, Hispanic-Owned Businesses (Annual Business Survey story), 2021)
- At least one year of store management is generally required before Domino's grants a US franchise, and substantially all its US franchise owners started in its stores. (Domino's Pizza, Inc. (SEC filing), Domino's Pizza Form 10-K for fiscal year 2025, December 28, 2025)
- 30% of UK franchisees were female in 2018, the highest share since the British franchise survey began. (British Franchise Association and NatWest, 2018 bfa NatWest Franchise Survey, 2018)
- 18% of UK franchisees were under 30 in 2018, as more young people moved into franchise ownership. (British Franchise Association and NatWest, 2018 bfa NatWest Franchise Survey, 2018)
| Measure | Franchised businesses | Comparison | Data year | Source |
|---|---|---|---|---|
| Share owned by people of color | 26% | 19% of non-franchised businesses | 2022 (2023 ABS) | Oxford Economics / IFA |
| Average sales vs non-franchised, all firms | 1.4 times | Non-franchised = 1.0 | 2022 (2023 ABS) | Oxford Economics / IFA |
| Average employment vs non-franchised, all firms | 2.1 times | Non-franchised = 1.0 | 2022 (2023 ABS) | Oxford Economics / IFA |
| Average sales, Black-owned firms | 2.3 times | Black-owned non-franchised = 1.0 | 2022 (2023 ABS) | Oxford Economics / IFA |
| Average sales, veteran-owned firms | 2.7 times | Veteran-owned non-franchised = 1.0 | 2022 (2023 ABS) | Oxford Economics / IFA |
| Veteran-owned share of all US employer firms | n/a | 5.4% | 2021 | U.S. Census Bureau |
| Hispanic-owned share of all US employer firms | n/a | 7.1% | 2021 | U.S. Census Bureau |
Franchise Costs, Royalty Fees and Financing Statistics
Upfront investment, ongoing royalties and loan terms shape whether a unit can make money. Several figures here come from Item 7 and fee disclosures in current franchise disclosure documents.
- $1.81 million–$4.94 million The average initial investment to open a new franchise unit eased 2.7% in 2025 to a range of $1.81 million to $4.94 million. (International Franchise Association and FRANdata, 2026 Franchising Economic Outlook, 2025)
- $265,372 to $573,000 The median FDD Item 7 initial investment estimate ran from $265,372 to $573,000 across 259 franchise disclosure documents issued in 2025 and 2026. (Franchise Consultants and Brokers (analysis of Minnesota CARDS FDD filings), Franchise Initial Investment: What 259 FDDs Say It Costs to Open, FDDs issued 2025 to 2026)
- 6% The median franchise royalty is 6% of sales across 239 FDDs that charge a percentage royalty, with the middle half between 5% and 7%. (Franchise Consultants and Brokers (analysis of Minnesota CARDS FDD filings), Franchise Royalty Rates and Fees: 259 Disclosure Documents by Sector, FDDs issued 2025 to 2026)
- 5.9% Dunkin' charges a 5.9% royalty plus a 5% advertising fee on gross sales, and a $40,000 initial franchise fee. (Inspire Brands, Franchise with Dunkin', FDD issued March 26, 2026)
- $651,550–$2,456,600 Opening an Arby's restaurant requires an estimated total initial investment of $651,550 to $2,456,600, including a $37,500 franchise fee. (Inspire Brands, Franchise with Arby's, FDD issued March 26, 2026)
- $10,000 Chick-fil-A's initial franchise fee is $10,000, which must come from non-gifted, non-borrowed funds. (Chick-fil-A, Inc., Chick-fil-A Franchise Opportunities, 2026)
- 6% Jimmy John's charges a $35,000 initial franchise fee, a 6% royalty and a 4.5% advertising fund fee on gross sales, per its 2026 FDD. (Jimmy John's Franchise, LLC (Inspire Brands), Franchise with Jimmy John's, 2026)
- 13.8% Franchise borrowers received 13.8% of SBA 7(a) loans and 21.8% of 7(a) dollars in fiscal 2026 through June 30, 2026. (Franchise Consultants and Brokers (analysis of SBA 7(a) FOIA data), SBA Franchise Loans: How Much 7(a) and 504 Lending Goes to Franchises, FY2026 to June 30, 2026)
- $394,000 The median franchise SBA 7(a) loan was $394,000 in fiscal 2026, more than double the $166,500 median for non-franchise 7(a) loans. (Franchise Consultants and Brokers (analysis of SBA 7(a) FOIA data), SBA Franchise Loans: How Much 7(a) and 504 Lending Goes to Franchises, FY2026 to June 30, 2026)
- $5 million SBA 7(a) loans, the most common government-backed route to franchise financing, are capped at $5 million. (U.S. Small Business Administration, 7(a) loans, 2026)
- 7.00% The bank prime rate, the base for most variable-rate SBA franchise loans, stood at 7.00% in mid-October 2026. (Board of Governors of the Federal Reserve System, H.15 Selected Interest Rates (Daily), October 15, 2026)
- nearly 30% Nearly 30% of franchise brand leaders cite interest rates and economic uncertainty as a constraint on growth. (Franchise Business Review (hosted by the International Franchise Association), Franchising Outlook 2026: FBR Industry Report, 2026 outlook (survey late 2025))
- 10% Median unit-level profit margins for franchisees are only 10%, leaving little room to absorb rising costs. (Franchise Business Review (hosted by the International Franchise Association), Franchising Outlook 2026: FBR Industry Report, 2026 outlook)
- $10.6 billion in franchise loans were guaranteed by the SBA under its 7(a) program in fiscal 2003 to 2012, GAO reported in 2013. (U.S. Government Accountability Office, Small Business Administration: 7(a) Loans to franchisees of one franchise organization (GAO-13-759), FY2003 to FY2012 (2013 report))
| Brand | Estimated initial investment | Initial franchise fee | Royalty | Disclosure cited |
|---|---|---|---|---|
| Arby's | $651,550–$2,456,600 | $37,500 | 4% of gross sales | FDD issued March 26, 2026 |
| Dunkin' | $443,000–$1,832,500 | $40,000 | 5.9% of gross sales | FDD issued March 26, 2026 |
| Jimmy John's | $366,200–$733,500 | $35,000 | 6% of gross sales | FDD issued March 26, 2026 |
| Goddard School (build-to-suit lease) | $1,003,500–$1,503,000 | Not stated on page | Not stated on page | 2026 FDD |
| Firehouse Subs (in-line, no drive-thru) | $379,650–$795,600 | $20K | Not stated on page | 2025 U.S. FDD |
| Mathnasium | $127,316–$165,846 | Not stated on page | Not stated on page | Franchise site, October 2026 |
| Median of 259 FDDs (Minnesota filings) | $265,372–$573,000 | $49,500–$49,900 | 6% of sales (239 FDDs) | FDDs issued 2025 to 2026 |
Franchise Success Rate, Failure Rate and Turnover Statistics
Survival rates depend heavily on how they are measured. This section sets franchise unit success rates beside general business survival data, owner satisfaction and resale activity.
- 94.2% is FRANdata's expected 2025 historical unit success rate for US franchise units, down from 95.9% in 2021. (International Franchise Association and FRANdata, 2026 Franchising Economic Outlook, 2025 (expected))
- fewer than 18% of franchise brands ever reach 100 units, according to FRANdata research. (FRANdata, Reaching 100 Units Is a Milestone, Not a Guarantee, 2026)
- More than 37% of franchise brands that passed 100 units since 2010 now run fewer franchised units than at their peak, having shrunk more than 23% from it. (FRANdata, Reaching 100 Units Is a Milestone, Not a Guarantee, 2026)
- 86% of franchise owners would recommend their franchise to others, in Franchise Business Review surveys of 26,000 owners across 330 brands. (Franchise Business Review, Franchise Performance Benchmarks: A Breakdown of 330 Brands, 2026 benchmarks)
- 76% of franchisees say they trust their franchisor, and 78% say they respect them, per Franchise Business Review benchmarks. (Franchise Business Review, Franchise Performance Benchmarks: A Breakdown of 330 Brands, 2026 benchmarks)
- 82% of UK franchisees are satisfied with their franchisors, according to the 2024 British Franchise Journal survey. (British Franchise Association, UK Franchising in 2024: British Franchise Journal survey highlights, 2024)
- 65% of UK franchisors expected at least one unit resale in the next 12 months in 2024, up from 51% in 2018. (British Franchise Association, UK Franchising in 2024: British Franchise Journal survey highlights, 2024)
- 77.9% of all US private-sector establishments opened in the year to March 2024 survived their first year (franchise and independent combined). (U.S. Bureau of Labor Statistics, Business Employment Dynamics, Table 7: Survival of private sector establishments by opening year, March 2025)
- 51.4% of all US private-sector establishments opened in the year to March 2020 were still operating five years later. (U.S. Bureau of Labor Statistics, Business Employment Dynamics, Table 7: Survival of private sector establishments by opening year, March 2025)
- 2.77 times as likely to exit via merger or acquisition were franchises than independent businesses, in a 2024 study that found no significant survival difference. (Pepperdine University Digital Commons, Thinking about starting a franchise business? Think again (Cotei and Farhat), The Journal of Entrepreneurial Finance 26(1), 2024 (businesses launched 2004, tracked 8 years))
- at least 46% historical SBA 7(a) loan default rates were found at three high-volume franchise brands in a 2013 SBA Inspector General review. (U.S. Small Business Administration, Office of Inspector General, Evaluation Report 13-17: SBA's Portfolio Risk Management Program Can Be Strengthened, 2013 (loans 2002 to 2009))
- 7.4% of franchise units of ABF-member brands in Brazil closed in 2025, up from 6.4% in 2024, according to the Brazilian Franchising Association (ABF). (Associação Brasileira de Franchising (ABF), Mercado de franquias supera os R$ 300 bilhões em 2025 e impulsiona o crescimento da economia brasileira, 2025)
- 4 domestic franchised Wingstop restaurants closed in fiscal 2025, against 384 domestic franchised openings. (Wingstop Inc. (SEC filing), Wingstop Inc. Form 10-K for fiscal year ended December 27, 2025, Fiscal 2025)
Figure 9: US franchise historical unit success rate, 2021 to 2025 (%)
Chart data
| Label | Value (%) |
|---|---|
| 2021 | 95.9% |
| 2022 | 95.4% |
| 2023 | 95.4% |
| 2024 | 94.5% |
| 2025 (expected) | 94.2% |
Franchise Agreement, FDD and Franchise Law Statistics
Federal and state law set minimum disclosure periods, exemption thresholds and notice and cure rules. These are the time periods and dollar limits a buyer is most likely to meet.
- 14 calendar-days is the minimum time a franchisor must give a prospective franchisee the disclosure document before signing or any payment, under the FTC Franchise Rule. (Legal Information Institute, Cornell Law School, 16 CFR 436.2 Obligation to furnish documents (FTC Franchise Rule), Current rule)
- Seven calendar-days is the minimum time franchisees must receive a unilaterally and materially revised agreement before signing it, under the FTC Franchise Rule. (Legal Information Institute, Cornell Law School, 16 CFR 436.2 Obligation to furnish documents (FTC Franchise Rule), Current rule)
- 23 numbered disclosure items make up a franchise disclosure document under the FTC Franchise Rule, ending with Item 23 (receipts), per the 2025 CFR edition. (U.S. Government Publishing Office (govinfo), 16 CFR 436.5 Disclosure items (FTC Franchise Rule), 2025 edition, Current rule (CFR revised January 1, 2025))
- $735 is the FTC minimum-payment threshold: franchise sales where the buyer pays less are exempt from the Franchise Rule, up from $615. (Federal Trade Commission, FTC Publishes Inflation-Adjusted Monetary Thresholds for Three Exemptions to the Franchise Rule, July 12, 2024)
- $1,469,600 is the FTC large-investment exemption threshold, up from $1,233,000, excluding unimproved land and franchisor financing. (Federal Trade Commission, FTC Publishes Inflation-Adjusted Monetary Thresholds for Three Exemptions to the Franchise Rule, July 12, 2024)
- $7,348,000 in net worth plus at least five years in business qualifies a buyer for the FTC large-franchisee exemption from disclosure. (Federal Trade Commission, FTC Publishes Inflation-Adjusted Monetary Thresholds for Three Exemptions to the Franchise Rule, July 12, 2024)
- Every four years the FTC adjusts the Franchise Rule's exemption thresholds for inflation using the Consumer Price Index. (Federal Trade Commission, FTC Publishes Inflation-Adjusted Monetary Thresholds for Three Exemptions to the Franchise Rule, July 12, 2024)
- More than 2,000 publicly posted comments were received by the FTC in response to its 2023 request for information on franchisor business practices. (Federal Trade Commission, FTC Takes Action to Ensure Franchisees' Complaints Are Heard, Protect Against Illegal Fees, July 12, 2024)
- 3-2 was the FTC vote adopting its 2024 policy statement that non-disparagement clauses barring franchisees from talking to the government violate the law. (Federal Trade Commission, FTC Takes Action to Ensure Franchisees' Complaints Are Heard, Protect Against Illegal Fees, July 12, 2024)
- Ten business days before signing is the latest a New York franchisor may deliver its prospectus, unless the first personal meeting or payment comes earlier. (New York State Senate, New York General Business Law Section 683 (Registration of franchise offers), Current law)
- 90 days advance notice is required before a Minnesota franchisor terminates a franchise, with the franchisee given 60 days to cure. (Minnesota Office of the Revisor of Statutes, Minnesota Statutes Section 80C.14 (Unfair practices), Current law)
- 180 days advance notice is required in Minnesota before a franchisor fails to renew a franchise. (Minnesota Office of the Revisor of Statutes, Minnesota Statutes Section 80C.14 (Unfair practices), Current law)
- Thirty days is the most cure time a Washington franchisor need give after written notice of default before terminating. (Washington State Legislature, RCW 19.100.180 Franchise relationship: rights and prohibitions, Current law)
- 30 to 90 days is the cure period Iowa law requires after a written termination notice, with nonpayment defaults capped at 30 days. (Iowa Legislature, Iowa Code Section 523H.7 Termination, Iowa Code 2026)
| Jurisdiction and law | Requirement | Time period |
|---|---|---|
| Federal: FTC Franchise Rule, 16 CFR 436.2(a) | Deliver disclosure document before signing or any payment | At least 14 calendar days |
| Federal: FTC Franchise Rule, 16 CFR 436.2(b) | Deliver unilaterally and materially revised agreement before signing | At least 7 calendar days |
| New York: GBL 683(8) | Deliver prospectus before sale | Earliest of first personal meeting, 10 business days before signing, or 10 days before payment |
| Minnesota: Stat. 80C.14 subd. 3 | Notice before termination / time to cure | 90 days notice / 60 days to cure |
| Minnesota: Stat. 80C.14 subd. 4 | Notice before nonrenewal | At least 180 days |
| Washington: RCW 19.100.180(2)(j) | Cure period after written notice of default | Need not exceed 30 days |
| Iowa: Code 523H.7(2) | Cure period after written notice of termination | 30 to 90 days (30 days for nonpayment) |
Franchise Dispute, Litigation and Arbitration Statistics
Few franchise lawsuits end in a trial verdict, and current agreements push many into arbitration. These figures cover federal court filings, contract waivers, regulator orders and recent settlements.
- 212 US federal district courts logged 212 franchise cases in fiscal 2025, down from a peak of 477 in fiscal 2013. (Franchise Consultants and Brokers (analysis of Federal Judicial Center IDB data), Franchise Litigation in U.S. Federal Courts: Filings, Outcomes and Duration, FY2025)
- 289 Federal franchise filings rose 40.3% to 289 in the 12 months to June 30, 2026, from 206 a year earlier. (Franchise Consultants and Brokers (analysis of Federal Judicial Center IDB data), Franchise Litigation in U.S. Federal Courts: Filings, Outcomes and Duration, 12 months to June 30, 2026)
- 33.7% 33.7% of terminated federal franchise cases were recorded as settled, and only 1.0% ended in a trial verdict, with a median duration of 251 days. (Franchise Consultants and Brokers (analysis of Federal Judicial Center IDB data), Franchise Litigation in U.S. Federal Courts: Filings, Outcomes and Duration, July 2021 to June 2026)
- 71.4% 71.4% of 259 current franchise disclosure documents require binding arbitration of disputes, usually seated in the franchisor's home state. (Franchise Consultants and Brokers (analysis of Minnesota CARDS FDD filings), Franchise Agreement Terms: What 259 Current FDDs Disclose, FDDs issued 2025 to 2026)
- 87.3% 87.3% of current franchise disclosure documents include a class action waiver and 79.5% include a jury trial waiver. (Franchise Consultants and Brokers (analysis of Minnesota CARDS FDD filings), Franchise Agreement Terms: What 259 Current FDDs Disclose, FDDs issued 2025 to 2026)
- 562 Eight state franchise regulators published 562 enforcement orders from 2015 to October 2026; 74.0% involved selling unregistered franchises. (Franchise Consultants and Brokers (registry of state regulator order lists), Franchise Enforcement Actions: 562 State Orders, 2015 to 2026, January 2015 to October 14, 2026)
- $17 million Xponential Fitness agreed to pay $17 million, to be returned to franchisees, to settle FTC charges of Franchise Rule violations. (U.S. Federal Trade Commission, FTC Secures Settlement Against Xponential Fitness for Franchise Rule Violations, March 18, 2026)
- $1.85 million FTC settlements with Premier Martial Arts' franchisor and its former sales organization recover $1.85 million for franchisees who paid fees of $49,500 or more. (U.S. Federal Trade Commission, Premier Martial Arts Franchisor and its Former Franchise Sales Organization Settle FTC Charges, October 5, 2026)
- $3,000,000 New York's Attorney General is distributing $3,000,000 to 70 Xponential franchisees harmed by longer-than-disclosed studio opening times. (New York State Office of the Attorney General, Attorney General James Secures More Than $3.9 Million from Xponential Fitness, June 9, 2026)
- 9.2% Franchise disputes made up 9.2% of new cases actively managed by Australia's small business ombudsman in April to June 2026. (Australian Small Business and Family Enterprise Ombudsman, ASBFEO Quarterly Report, 1 April to 30 June 2026, Q2 2026 (Apr to Jun))
- $4,000 In Australia, franchise mediation under the Franchising Code typically costs around A$4,000, or A$2,000 per party. (Australian Small Business and Family Enterprise Ombudsman, Franchising Code of Conduct and Alternative Dispute Resolution, 2026)
- 0.2% In 2018, disputes caused only 0.2% of UK franchised units to change hands, be bought back or close, per the bfa NatWest survey. (British Franchise Association and NatWest, 2018 bfa NatWest Franchise Survey, 2018)
- About 5,900 franchise-related complaints reached the FTC from 2018 through 2022, less than 1% of all complaints it received, GAO found in 2023. (U.S. Government Accountability Office, Federal Trade Commission: Actions Needed to Improve Education Efforts and Awareness of Complaint Process for Franchise Owners (GAO-23-105338), 2018 to 2022 (2023 report))
- 5,291 comments were received by the FTC in response to its 2023 franchise Request for Information, of which 2,216 were publicly posted. (Federal Trade Commission, Franchise Issue Spotlight, 2023 (published July 2024))
| Market | Measure | Value | Period |
|---|---|---|---|
| US | Franchise cases filed in federal district courts | 289 | 12 months to June 30, 2026 |
| US | Terminated federal franchise cases recorded as settled | 33.7% | July 2021 to June 2026 |
| US | FDDs requiring binding arbitration | 71.4% | FDDs issued 2025 to 2026 |
| US | Franchisees who say they trust their franchisor | 76% | Surveys May 2024 to November 2025 |
| Australia | Franchise share of new ombudsman-managed disputes | 10.0% | Q1 2026 |
| Australia | Franchise share of new ombudsman-managed disputes | 9.2% | Q2 2026 |
| UK | Franchised units changing hands or closing because of a dispute | 0.2% | 2018 |
| UK | Franchisees satisfied with their franchisor | 82% | 2024 |
Global and India Franchise Market Statistics
Franchising is large outside the US too. This section covers the UK, Canada, Europe, Brazil, New Zealand and India, where master franchisees run major global brands.
- £19.1 billion is UK franchising's contribution to the economy, according to the 2024 British Franchise Journal survey. (British Franchise Association, UK Franchising in 2024: British Franchise Journal survey highlights, 2024)
- 1,009 franchise systems operate in the UK with 50,421 franchise units, up 8% and 4% respectively since 2018. (British Franchise Association, UK Franchising in 2024: British Franchise Journal survey highlights, 2024)
- almost $150 billion a year is contributed to the Canadian economy by franchised businesses, which create jobs for almost two million Canadians, per the CFA. (Canadian Franchise Association, Canadian Franchise Association homepage, 2026)
- 14,900+ franchise systems are counted by the European Franchise Federation, which says 80% of them originated in Europe. (European Franchise Federation, European Franchise Federation homepage, Current EFF figure)
- R$301.7 billion in 2025 revenue made Brazilian franchising's best year on record, a nominal rise of 10.5% over 2024 (ABF). (Associação Brasileira de Franchising (ABF), Mercado de franquias supera os R$ 300 bilhões em 2025 e impulsiona o crescimento da economia brasileira, 2025)
- 202,444 franchise units were operating in Brazil in 2025, linked to 3,297 franchise networks, per the Brazilian Franchising Association. (Associação Brasileira de Franchising (ABF), Mercado de franquias supera os R$ 300 bilhões em 2025 e impulsiona o crescimento da economia brasileira, 2025)
- 546 business format franchisors operated in New Zealand in 2024 with 27,295 units, per Massey University's Franchising New Zealand survey. (Massey University, Survey shows resilience and optimism in franchise sector with $10.4b turnover growth (2024 Franchising New Zealand Report), 2024)
- $47.2 billion was New Zealand business format franchising turnover in 2024 (NZ dollars), up $10.4 billion, excluding motor vehicle and fuel retail. (Massey University, Survey shows resilience and optimism in franchise sector with $10.4b turnover growth (2024 Franchising New Zealand Report), 2024)
- 14,956 international franchised Domino's stores were open at the end of 2025, about double its 7,186 US stores. (Domino's Pizza, Inc. (SEC filing), Domino's Pizza Form 10-K for fiscal year 2025, December 28, 2025)
- 2,396 Domino's stores operate in India, its largest international market, all run by master franchisee Jubilant FoodWorks. (Domino's Pizza, Inc. (SEC filing), Domino's Pizza Form 10-K for fiscal year 2025, December 28, 2025)
- 540 Indian cities are covered by Jubilant FoodWorks' Domino's India network, after it entered 19 new cities in one quarter. (Jubilant FoodWorks Ltd, Q1FY27 Letter to Shareholders, Quarter ended June 30, 2026)
- 482 McDonald's restaurants in 79 Indian cities are run by franchisee Westlife Foodworld, which targets 580 to 630 by December 2027. (Westlife Foodworld Limited, Q1 FY27 Earnings Press Release, June 30, 2026)
| Market | Franchise systems | Franchise units | Economic contribution or sales | Direct jobs | Year |
|---|---|---|---|---|---|
| United States | Not reported | 832,521 establishments | $907.3 billion output | 8,788,313 | 2025 (estimate) |
| United Kingdom | 1,009 | 50,421 | £19.1 billion contribution | Not reported | 2024 |
| Brazil | 3,297 networks | 202,444 | R$301.7 billion revenue | 1.762 million | 2025 |
| New Zealand | 546 (business format) | 27,295 | NZ$47.2 billion turnover | More than 114,300 | 2024 |
| Canada | Not reported | Not reported | Almost $150 billion per year (CAD) | Almost two million | 2026 (CFA) |
| Europe | 14,900+ | Not reported | Not reported | Not reported | Current EFF figure |
What the numbers mean for people buying a franchise
The headline figures describe a large, steady industry: 845,000 US establishments forecast for 2026 and more than 12,000 new franchised businesses expected to open. Steady growth for the system is not the same as safety for a single unit. FRANdata's historical unit success rate has slipped from 95.9% in 2021 to an expected 94.2% in 2025, fewer than 18% of franchise brands ever reach 100 units, and more than 37% of brands that passed 100 units since 2010 now run fewer franchised units than at their peak.
Margins are thin. Median unit-level profit margins for franchisees are only 10%, while the median royalty in current disclosure documents is 6% of sales, with the middle half between 5% and 7%, and many brands add an advertising fee on top. The median Item 7 initial investment estimate runs from $265,372 to $573,000. Before signing, build your own budget from the brand's Item 7 and fee tables, ask current and former franchisees what their real costs were, and treat a young brand with few units as a higher risk.
The agreement shapes what happens when things go wrong
When disputes happen, the contract decides where they go. In current franchise disclosure documents, 71.4% require binding arbitration, usually in the franchisor's home state, 87.3% include a class action waiver and 79.5% include a jury trial waiver. Federal franchise filings rose 40.3% to 289 in the 12 months to June 30, 2026, and only 1.0% of terminated federal franchise cases ended in a trial verdict.
Regulators have also been active. Eight state regulators published 562 enforcement orders from 2015 to October 2026, and 74.0% involved selling unregistered franchises. Xponential Fitness agreed to pay $17 million to settle FTC charges of Franchise Rule violations. Buyers have some protection on timing: the FTC Franchise Rule requires the disclosure document at least 14 calendar days before signing or any payment, and some states add termination rules, such as Minnesota's 90 days of advance notice with 60 days to cure. Use that waiting period to read the agreement itself, not just the sales material.
What to do with these numbers
- Compare the royalty, advertising fee and total initial investment against the medians on this page before you negotiate.
- Ask how many units the brand has closed or transferred, and check the unit turnover tables in the disclosure document.
- If you plan to borrow, note that the median franchise SBA 7(a) loan was $394,000 in fiscal 2026 through June 30, and most variable SBA loans move with the prime rate.
- Check the dispute, termination, renewal and non-compete terms with your state's franchise law in mind, since protections vary by state.
- Have the agreement reviewed before the 14-day disclosure window closes, while there is still time to ask questions.
Check your franchise agreement before you sign
Many of the figures on this page trace back to the agreement itself: the fees, the renewal rights and the dispute terms. An automated review of your franchise agreement flags the clauses that matter and explains them in plain English, so you know what to ask the franchisor or your attorney before you sign.
- Royalty, advertising fund and technology fees, and whether the franchisor can raise them
- Territory rights and whether the franchisor can open or sell nearby
- Term length, renewal conditions and any renewal fee
- Termination triggers, notice periods and cure rights
- Post-term non-compete scope, duration and geography
- Binding arbitration, venue, class action and jury trial waivers
- Transfer and resale restrictions, including franchisor approval and transfer fees
- Personal guarantees signed by the owner or spouse
Frequently asked questions
How many franchises are there in the US?
The International Franchise Association forecasts 845,000 US franchise establishments in 2026, up 1.5% from 832,521 in 2025. More than 12,000 new franchised businesses are expected to open during the year.
How many people work in franchises?
US franchise businesses are projected to employ nearly 8.9 million people in 2026, a 1.8% increase on 2025. Quick-service restaurants employ about 58.1% of all franchise workers.
What is the average franchise royalty fee?
Across 239 current disclosure documents that charge a percentage royalty, the median is 6% of sales, with the middle half between 5% and 7%. Many brands also charge a separate advertising fund fee.
How much does it cost to open a franchise?
The median Item 7 initial investment estimate ran from $265,372 to $573,000 across 259 franchise disclosure documents issued in 2025 and 2026. Costs vary widely by brand; Arby's, for example, estimates $651,550 to $2,456,600.
What is the franchise success rate?
FRANdata expects a historical unit success rate of 94.2% for US franchise units in 2025, down from 95.9% in 2021. Brand-level growth is harder: fewer than 18% of franchise brands ever reach 100 units.
Do most franchise agreements require arbitration?
Yes. 71.4% of 259 current franchise disclosure documents require binding arbitration, usually in the franchisor's home state, and 87.3% include a class action waiver.
How long do I have to review a franchise disclosure document?
Under the FTC Franchise Rule, a franchisor must give you the disclosure document at least 14 calendar days before you sign or pay anything. New York requires delivery at least ten business days before signing, or earlier if a first personal meeting or payment comes first.
Use this data
Every chart and card below is free to reuse under CC BY 4.0. Download what you need and link back to this page.
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US franchise establishments, 2022 to 2026
Share of restaurants franchised at major US chains, 2025 (%)
US franchise employment by business line, 2026 projection (jobs)
Top 10 franchise brands by 2025 global systemwide sales (USD billions)
Projected 2026 growth in US franchise establishments by business line (%)
Growth in US multi-unit franchise operators by size band, 2010 to 2025 (% change in number of operators)
US franchise historical unit success rate, 2021 to 2025 (%)
Franchise ownership and performance benchmarks by owner group
Key time periods in federal and state franchise disclosure and relationship laws
Estimated initial investment and fees disclosed by selected franchise brands
Franchise dispute indicators in the US, Australia and the UK
Franchise sector snapshots by country and region (latest published figures; definitions and methods differ)Embed the infographic
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Sources and method
Every number on this page comes from the sources below, each opened and read on or before October 17, 2026. A second, independent review checked every figure against its source and corrected anything that did not match. Figures that could not be confirmed were left out.
- International Franchise Association, IFA Predicts Steady Growth for Franchising in 2026 Economic Outlook (February 19, 2026)
- International Franchise Association and FRANdata, 2026 Franchising Economic Outlook (2026 edition)
- Oxford Economics for the International Franchise Association Foundation, The Value of Franchising (January 2026)
- Oxford Economics, The Value of Franchising (2021 study) (September 21, 2021)
- Yum! Brands, Inc. (SEC filing), Yum! Brands Form 10-K for fiscal year 2025 (Filed February 20, 2026)
- Domino's Pizza, Inc. (SEC filing), Domino's Pizza Form 10-K for fiscal year 2025 (Filed February 23, 2026)
- Papa John's International, Inc., Papa Johns Announces Second Quarter 2026 Financial Results (August 6, 2026)
- U.S. Census Bureau, Veteran-Owned Businesses (Annual Business Survey story) (November 2024)
- U.S. Census Bureau, Hispanic-Owned Businesses (Annual Business Survey story) (October 2024)
- British Franchise Association and NatWest, 2018 bfa NatWest Franchise Survey (2018)
- Federal Trade Commission, FTC Publishes Inflation-Adjusted Monetary Thresholds for Three Exemptions to the Franchise Rule (July 12, 2024)
- Federal Trade Commission, FTC Takes Action to Ensure Franchisees' Complaints Are Heard, Protect Against Illegal Fees (July 12, 2024)
- Legal Information Institute, Cornell Law School, 16 CFR 436.2 Obligation to furnish documents (FTC Franchise Rule) (Current text)
- New York State Senate, New York General Business Law Section 683 (Registration of franchise offers) (Current text)
- Minnesota Office of the Revisor of Statutes, Minnesota Statutes Section 80C.14 (Unfair practices) (Current text)
- Washington State Legislature, RCW 19.100.180 Franchise relationship: rights and prohibitions (Current text)
- Iowa Legislature, Iowa Code Section 523H.7 Termination (Iowa Code 2026)
- McDonald's Corporation, McDonald's Reports Fourth Quarter and Full Year 2025 Results (February 11, 2026)
- Restaurant Brands International Inc., Restaurant Brands International Inc. Reports Fourth Quarter and Full Year 2025 Results (February 12, 2026)
- The Wendy's Company, The Wendy's Company Reports Fourth Quarter and Full Year 2025 Results and Provides 2026 Outlook (February 13, 2026)
- Franchise Business Review (hosted by the International Franchise Association), Franchising Outlook 2026: FBR Industry Report (2026 edition; surveys May 2024 to November 2025)
- U.S. Bureau of Labor Statistics, Occupational Outlook Handbook: Food and Beverage Serving and Related Workers (2025 employment and May 2025 wage data)
- California Department of Industrial Relations, Labor Commissioner's Office, Fast Food Minimum Wage Frequently Asked Questions (Current page, read October 2026)
- McDonald's Corporation (SEC filing), McDonald's Corporation Annual Report on Form 10-K, fiscal 2025 (February 24, 2026)
- Franchise Times, Franchise Times Top 400 Ranks the Biggest Brands in Franchising (September 30, 2026 (2026 Top 400, 2025 sales))
- Franchise Times, These 5 Breakout Brands Are Climbing the Top 400 Ranks (September 30, 2026)
- Inspire Brands, Franchise with Dunkin' (Current page citing FDD issued March 26, 2026)
- Inspire Brands, Franchise with Arby's (Current page citing FDD issued March 26, 2026)
- Chick-fil-A, Inc., Chick-fil-A Franchise Opportunities (Current page, read October 2026)
- Firehouse Subs (Restaurant Brands International), Firehouse Subs Franchising (Current page citing 2025 U.S. FDD)
- Goddard Franchisor, LLC, Goddard School Franchise Opportunities (Current page citing 2026 FDD)
- Mathnasium, Mathnasium Franchise Opportunity (Current page, read October 2026)
- Franchise Consultants and Brokers (analysis of Minnesota CARDS FDD filings), Franchise Initial Investment: What 259 FDDs Say It Costs to Open (Updated October 7, 2026)
- Franchise Consultants and Brokers (analysis of Minnesota CARDS FDD filings), Franchise Royalty Rates and Fees: 259 Disclosure Documents by Sector (October 5, 2026)
- Franchise Consultants and Brokers (analysis of SBA 7(a) FOIA data), SBA Franchise Loans: How Much 7(a) and 504 Lending Goes to Franchises (October 3, 2026 (data as of June 30, 2026))
- Franchise Consultants and Brokers (analysis of Minnesota CARDS FDD filings), Franchise Agreement Terms: What 259 Current FDDs Disclose (Updated October 6, 2026)
- Franchise Consultants and Brokers (analysis of Federal Judicial Center IDB data), Franchise Litigation in U.S. Federal Courts: Filings, Outcomes and Duration (October 4, 2026 (cases through June 30, 2026))
- Franchise Consultants and Brokers (registry of state regulator order lists), Franchise Enforcement Actions: 562 State Orders, 2015 to 2026 (October 14, 2026)
- U.S. Small Business Administration, 7(a) loans (Current page, read October 2026)
- Board of Governors of the Federal Reserve System, H.15 Selected Interest Rates (Daily) (October 16, 2026)
- U.S. Federal Trade Commission, FTC Secures Settlement Against Xponential Fitness for Franchise Rule Violations (March 18, 2026)
- U.S. Federal Trade Commission, Premier Martial Arts Franchisor and its Former Franchise Sales Organization Settle FTC Charges (October 5, 2026)
- New York State Office of the Attorney General, Attorney General James Secures More Than $3.9 Million from Xponential Fitness (June 9, 2026)
- Australian Small Business and Family Enterprise Ombudsman, ASBFEO Quarterly Report, 1 April to 30 June 2026 (July 2026)
- Australian Small Business and Family Enterprise Ombudsman, ASBFEO Quarterly Report, Q1 2026 (May 2026)
- Australian Small Business and Family Enterprise Ombudsman, Franchising Code of Conduct and Alternative Dispute Resolution (Current page, read October 2026)
- British Franchise Association, UK Franchising in 2024: British Franchise Journal survey highlights (2024)
- Subway, Subway Newsroom: About Subway (Current page, read October 2026)
- Hilton Worldwide Holdings Inc., Hilton Q4 + Full Year 2025 Results (February 2026)
- Wingstop Inc., Own a Wingstop (Current page, fiscal 2025 highlights as of December 27, 2025)
- Jimmy John's Franchise, LLC (Inspire Brands), Franchise with Jimmy John's (Current page citing FDD issued March 26, 2026)
- Franchise Times, Real Estate Franchises Grow Sales With Fewer Outlets, According to Top 400 Data (October 2026)
- Planet Fitness, Inc., Planet Fitness, Inc. Announces Second Quarter 2026 Results (August 2026)
- Valvoline Inc., Valvoline Inc. Reports Third Quarter Results (fiscal 2026) (August 5, 2026)
- Franchising.com / Multi-Unit Franchisee Magazine, The 2026 Multi-Unit 50: A Snapshot of Scale (data: FRANdata) (2026)
- FRANdata (published by the International Franchise Association), There's No Stopping Multi-Unit Ownership! Insights into multi-unit franchise ownership growth (June 2026)
- FRANdata (published by the International Franchise Association), MUBG 2026: Franchise Industry Ownership Landscape (June 2026)
- Wingstop Inc. (SEC filing), Wingstop Inc. Form 10-K for fiscal year ended December 27, 2025 (Fiscal 2025 annual report)
- Flynn Group, Flynn Group company homepage (Accessed October 2026)
- FRANdata, Reaching 100 Units Is a Milestone, Not a Guarantee (September 11, 2026)
- Franchise Business Review, Franchise Performance Benchmarks: A Breakdown of 330 Brands (February 2026)
- U.S. Bureau of Labor Statistics, Business Employment Dynamics, Table 7: Survival of private sector establishments by opening year (Data through March 2025)
- U.S. Small Business Administration, Office of Inspector General, Evaluation Report 13-17: SBA's Portfolio Risk Management Program Can Be Strengthened (July 2, 2013)
- Pepperdine University Digital Commons, Thinking about starting a franchise business? Think again (Cotei and Farhat), The Journal of Entrepreneurial Finance 26(1) (2024)
- Associação Brasileira de Franchising (ABF), Mercado de franquias supera os R$ 300 bilhões em 2025 e impulsiona o crescimento da economia brasileira (March 10, 2026)
- Canadian Franchise Association, Canadian Franchise Association homepage (Accessed October 2026)
- European Franchise Federation, European Franchise Federation homepage (Accessed October 2026)
- Massey University, Survey shows resilience and optimism in franchise sector with $10.4b turnover growth (2024 Franchising New Zealand Report) (October 22, 2024)
- Jubilant FoodWorks Ltd, Q1FY27 Letter to Shareholders (Quarter ended June 30, 2026)
- Westlife Foodworld Limited, Q1 FY27 Earnings Press Release (July 2026)
- U.S. Census Bureau, Census Bureau Releases New Franchise Statistics Report From the 2017 Economic Census (August 26, 2021)
- National Bureau of Economic Research, Automating Response Evaluation for Franchising Questions on the 2017 Economic Census (NBER Working Paper 25818) (May 2019)
- National Bureau of Economic Research, Theory and Evidence on Employer Collusion in the Franchise Sector (NBER Working Paper 24831) (July 2018)
- Washington State Office of the Attorney General, AG Ferguson's initiative to end no-poach clauses nationwide secures end to provisions at four more chains (January 14, 2019)
- Jack in the Box Inc. (SEC filing), Jack in the Box Inc. Form 10-K for fiscal 2025 (Fiscal year ended September 28, 2025)
- Dine Brands Global, Inc. (SEC filing), Dine Brands Global fourth quarter and fiscal 2025 results (Form 8-K Exhibit 99.1) (February 25, 2026)
- Wyndham Hotels & Resorts, Wyndham Hotels & Resorts Reports Fourth Quarter Results (February 18, 2026)
- Choice Hotels International, Choice Hotels International Reports Fourth Quarter and Full-Year 2025 Results (February 19, 2026)
- InterContinental Hotels Group PLC (SEC filing), IHG Annual Report and Form 20-F 2025 (Form 6-K) (2026)
- Driven Brands Holdings Inc., Driven Brands Holdings Inc. Reports Second Quarter 2026 Results (August 5, 2026)
- U.S. Government Accountability Office, Small Business Administration: 7(a) Loans to franchisees of one franchise organization (GAO-13-759) (2013)
- U.S. Government Accountability Office, Federal Trade Commission: Actions Needed to Improve Education Efforts and Awareness of Complaint Process for Franchise Owners (GAO-23-105338) (2023)
- Federal Trade Commission, Franchise Issue Spotlight (July 2024)
- U.S. Government Publishing Office (govinfo), 16 CFR 436.5 Disclosure items (FTC Franchise Rule), 2025 edition (January 1, 2025)
Cite this page
ClauseAudit, “Franchise Statistics 2026: 160+ Numbers on Growth, Costs, Owners and Franchise Agreements”, updated October 17, 2026, https://clauseaudit.com/data/franchise-statistics. Free to reuse with a link back (CC BY 4.0).
This page summarises published data and law as checked on October 17, 2026. Figures are updated as new editions are released, and your own situation may differ. It is general information, not legal, tax or financial advice.