{{title}}
{{byline}}
{{byline}}
Despite the regulatory, legislative, and other existential threats to the business model, franchising continues to grow and evolve. (See the IFA’s Legislative Update column in this issue). The evidence is in the numbers, as the following tables from FRANdata demonstrate.
Multi-unit/multi-brand operators continue to increase in number and reach with each passing year. Flynn Restaurant Group (FRG), the country’s largest franchisee, with more than 2,600 restaurants, $4.2 billion in annual sales, and 75,000 employees dominates in the U.S. And this past summer, the company realized a long-held dream to grow internationally by expanding into Australia with the purchase of 260 Pizza Huts—along with the master franchise license for the country.
FRG may be the largest, but it’s only one of many multi-unit/multi-brand franchisee organizations that dominate franchising today. These “Dominators” grow through acquisitions, new unit buildouts, refranchising, and buying up units from retiring or underperforming franchisees—a trend that only accelerated during Covid-19 as smaller or weaker operators sold out to larger and stronger ones.
Banking on their good credit, solid infrastructure, and proven track record, these larger operators are creating historically large franchisee organizations that have changed the face of modern franchising.
Today, during these post-pandemic (we hope) times, these dominators continue to create jobs by the thousands, hiring young employees and providing a career path for them to grow and become the next generation of franchise leaders. And they give back to their communities, encouraging employees to support local organizations and charities.
From its early days as a “buy yourself a job” for mom-and-pop operators, franchising has come a long way, baby!
View Original for Full Data Table
View Original for Full Data Table
View Original for Full Data Table
View Original for Full Data Table
View Original for Full Data Table
View Original for Full Data Table
View Original for Full Data Table
View Original for Full Data Table
View Original for Full Data Table
View Original for Full Data Table
Note: Data based on most current FDDs.
Source: FRANdata