2024 Dominators

2024 Dominators

2024 Dominators

The U.S. franchising landscape has undergone a significant transformation over the past decade, marked by a notable increase in multi-unit franchisee ownership. Recent data from our franchisee database reveals that there are approximately 42,891 multi-unit operators (MUOs) in the country, collectively managing 241,380 units. MUOs now control 56% of all franchised units, highlighting their growing influence within the industry. On average, an MUO today owns 5.5 franchised units, up from 4.9 units a decade ago, reflecting a steady annualized growth rate of 1.1%.

Ownership dynamics have also shifted with franchise transfers increasing at a compound annual growth rate (CAGR) of 4.8% over the past decade. This trend points to an active and fluid market as franchisees buy and sell existing units more frequently than in the past. Despite the industry’s growth, challenges have emerged, particularly in the QSR sector. Major multi-unit operators of brands like Burger King, Popeyes, McDonald’s, and Wendy’s have faced financial difficulties with some filing for Chapter 11 bankruptcy. Contributing factors include rising labor and ingredient costs, stagnant foot traffic, and high interest rates.

Moreover, the shift away from city centers due to remote work has impacted sales, especially for locations reliant on office workers and downtown traffic. Despite these obstacles, large MUOs continue to pursue growth. For example, Tacala LLC, the largest Taco Bell franchisee, recently secured a major investment led by Altamont Capital Partners and other partners, providing the capital needed for further expansion in both the Taco Bell system and new ventures like 7 Brew Drive-thru Coffee stands.

These trends illustrate a franchising market in transition. With a greater concentration of multi-unit operators and a rising pace of ownership transfers, the industry is evolving toward a structure favoring scale and consolidation. While economic pressures persist, large operators remain focused on growth, showcasing resilience and adaptability as they navigate an ever-changing landscape.

Ambika Oberoi is director of information management at FRANdata.

STATE
(and D.C.)

LARGEST FRANCHISEES

UNITS

ALABAMA

TACALA

124

ALASKA

MICHAEL DAVIDSON

21

ALASKA

SUBWAY DEVELOPMENT OF ALASKA

21

ARIZONA

DESERT DE ORO FOODS

172

ARKANSAS

K-MAC ENTERPRISES

99

CALIFORNIA

G & M OIL CO

285

COLORADO

FLYNN GROUP

130

CONNECTICUT 

GREAT AMERICAN DONUT

45

D.C.

KOVAN GROUP/DEKK GROUP/NGP MANAGEMENT

9

D.C.

TEAM WASHINGTON

9

DELEWARE

NISTAZOS AND SONS/FRANCHISE MANAGEMENT SERVICES 

25

FLORIDA

SUMMIT RESTAURANT GROUP (NEIGHBORHOOD HOSPITALITY/ARGONNE CAPITAL)

224

GEORGIA

GPS HOSPITALITY

131

HAWAII

RBD CALIFORNIA RESTAURANTS LIMITED

60

IDAHO

FLYNN GROUP

52

ILLINOIS

THE DHANANI GROUP

206

INDIANA

FLYNN GROUP

141

IOWA

FRASIER ENTERPRISES

38

KANSAS

ROTTINGHAUS COMPANY

150

KENTUCKY

FOURTEEN FOODS

62

LOUISIANA

GPS HOSPITALITY 

109

MAINE

MICHAEL M COSTA—DUNKIN’

34

MARYLAND

FLYNN GROUP

89

MASSACHUSETTS

CAFUA MANAGEMENT COMPANY (CMC)

83

MASSACHUSETTS

COUTO MANAGEMENT GROUP/DARTMOUTH MANAGEMENT GROUP/CAPE MANAGEMENT TEAM

83

MICHIGAN

TEAM SCHOSTAK FAMILY RESTAURANTS (TSFR APPLE VENTURE)

130

MINNESOTA

THE DHANANI GROUP

99

MISSISSIPPI

CARLISLE

78

MISSOURI

FLYNN GROUP

211

MONTANA

THE TAX DOCTORS

21

NORTH CAROLINA

BODDIE-NOELL ENTERPRISES

127

NORTH DAKOTA

MIDWEST SUBWAY DEVELOPMENT

20

NEBRASKA

STAAB MANAGEMENT COMPANY

54

NEVADA

TERRIBLE HERBST

128

NEW HAMPSHIRE

KOVAN GROUP/DEKK GROUP/NGP MANAGEMENT

41

NEW JERSEY

THE BRIAD GROUP (BRIAD RESTAURANT & LODGING GROUP)

65

NEW MEXICO

MERRITT GROUP

69

NEW YORK

METRO FRANCHISING COMMISSARY

139

OHIO

THE COVELLI FAMILY LIMITED PARTNERSHIP

134

OKLAHOMA

FLYNN GROUP

113

OREGON

AMBROSIA QSR

76

PENNSYLVANIA

FLYNN GROUP

126

RHODE ISLAND

DAN’S MANAGEMENT COMPANY

39

SOUTH CAROLINA

CAROLINA RESTAURANT GROUP

56

SOUTH DAKOTA

CAVE ENTERPRISES OPERATIONS

23

TENNESSEE

RRD FINANCIAL SERVICES/STUDLE FINANCIAL SERVICES

93

TEXAS

THE DHANANI GROUP

621

UTAH

SIZZLING PLATTER  

87

VERMONT

VERMONT DONUT ENTERPRISES

17

VIRGINIA

BODDIE-NOELL ENTERPRISES

168

WASHINGTON

AMBROSIA QSR

116

WEST VIRGINIA

LITTLE GENERAL STORE

78

WISCONSIN

CAVE ENTERPRISES OPERATIONS

101

WYOMING

GRAND MERE RESTAURANT GROUP

20

Source: FRANdata

Note: Data based on most current FDDs.

ENTIRE U.S.

MSA

FRAN-CHISED UNITS

NEW YORK-NEWARK-JERSEY CITY, NY-NJ-PA

16,257

LOS ANGELES-LONG BEACH-ANAHEIM, CA

13,550

CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI

11,494

DALLAS-FORT WORTH-ARLINGTON, TX

10,736

HOUSTON-THE WOODLANDS-SUGAR LAND, TX

9,971

ATLANTA-SANDY SPRINGS-ALPHARETTA, GA

9,166

WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV

7,368

MIAMI-FORT LAUDERDALE-POMPANO BEACH, FL

7,065

PHILADELPHIA-CAMDEN-WILMINGTON, PA-NJ-DE-MD

6,721

PHOENIX-MESA-CHANDLER, AZ

6,251

RIVERSIDE-SAN BERNARDINO-ONTARIO, CA

5,387

DETROIT-WARREN-DEARBORN, MI

5,385

MINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI

4,858

TAMPA-ST. PETERSBURG-CLEARWATER, FL

4,764

BOSTON-CAMBRIDGE-NEWTON, MA-NH

4,637

SEATTLE-TACOMA-BELLEVUE, WA

4,513

DENVER-AURORA-LAKEWOOD, CO

4,420

CHARLOTTE-CONCORD-GASTONIA, NC-SC

4,391

SAN FRANCISCO-OAKLAND-BERKELEY, CA

4,360

SAN DIEGO-CHULA VISTA-CARLSBAD, CA

3,989

ORLANDO-KISSIMMEE-SANFORD, FL

3,852

ST. LOUIS, MO-IL

3,844

NASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN

3,373

INDIANAPOLIS-CARMEL-ANDERSON, IN

3,359

SAN ANTONIO-NEW BRAUNFELS, TX

3,348

BALTIMORE-COLUMBIA-TOWSON, MD

3,315

C INNATI, OH-KY-IN

3,300

SACRAMENTO-ROSEVILLE-FOLSOM, CA

3,186

AUSTIN-ROUND ROCK-GEORGETOWN, TX

3,108

KANSAS CITY, MO-KS

3,094

LAS VEGAS-HENDERSON-PARADISE, NV

3,059

PORTLAND-VANCOUVER-HILLSBORO, OR-WA

3,009

PITTSBURGH, PA

2,946

COLUMBUS, OH

2,938

VIRGINIA BEACH-NORFOLK-NEWPORT NEWS, VA-NC

2,920

CLEVELAND-ELYRIA, OH

2,582

JACKSONVILLE, FL

2,419

RALEIGH-CARY, NC

2,331

MILWAUKEE-WAUKESHA, WI

2,207

OKLAHOMA CITY, OK

2,119

SAN JOSE-SUNNYVALE-SANTA CLARA, CA

2,102

RICHMOND, VA

2,049

LOUISVILLE/JEFFERSON COUNTY, KY-IN

1,775

MEMPHIS, TN-MS-AR

1,752

NEW ORLEANS-METAIRIE, LA

1,730

SALT LAKE CITY, UT

1,725

PROVIDENCE-WARWICK, RI-MA

1,672

BIRMINGHAM-HOOVER, AL

1,562

GREENVILLE-ANDERSON, SC

1,548

OMAHA-COUNCIL BLUFFS, NE-IA

1,539

HARTFORD-EAST HARTFORD-MIDDLETOWN, CT

1,453

TULSA, OK

1,408

KNOXVILLE, TN

1,336

GRAND RAPIDS-KENTWOOD, MI

1,331

CHARLESTON-NORTH CHARLESTON, SC

1,327

DES MOINES-WEST DES MOINES, IA

1,325

COLUMBIA, SC

1,298

NORTH PORT-SARASOTA-BRADENTON, FL

1,277

DAYTON-KETTERING, OH

1,246

LITTLE ROCK-NORTH LITTLE ROCK-CONWAY, AR

1,217

COLORADO SPRINGS, CO

1,214

TUCSON, AZ

1,183

CAPE CORAL-FORT MYERS, FL

1,178

ALBUQUERQUE, NM

1,176

BATON ROUGE, LA

1,144

BUFFALO-CHEEKTOWAGA, NY

1,103

OXNARD-THOUSAND OAKS-VENTURA, CA

1,096

URBAN HONOLULU, HI

1,091

BOISE CITY, ID

1,061

BRIDGEPORT-STAMFORD-NORWALK, CT

1,059

FRESNO, CA

1,050

MADISON, WI

1,046

ALLENTOWN-BETHLEHEM-EASTON, PA-NJ

1,013

EL PASO, TX

997

GREENSBORO-HIGH POINT, NC

992

WICHITA, KS

967

CHATTANOOGA, TN-GA

966

ROCHESTER, NY

964

BAKERSFIELD, CA

949

AKRON, OH

946

ALBANY-SCHENECTADY-TROY, NY

936

JACKSON, MS

930

MYRTLE BEACH-CONWAY-NORTH MYRTLE BEACH, SC-NC

925

WORCESTER, MA-CT

913

NEW HAVEN-MILFORD, CT

899

AUGUSTA-RICHMOND COUNTY, GA-SC

887

STOCKTON, CA

879

PALM BAY-MELBOURNE-TITUSVILLE, FL

868

LEXINGTON-FAYETTE, KY

862

DELTONA-DAYTONA BEACH-ORMOND BEACH, FL

856

FAYETTEVILLE-SPRINGDALE-ROGERS, AR

855

TOLEDO, OH

850

LAKELAND-WINTER HAVEN, FL

834

HARRISBURG-CARLISLE, PA

819

OGDEN-CLEARFIELD, UT

818

PROVO-OREM, UT

805

SAVANNAH, GA

790

HUNTSVILLE, AL

786

DURHAM-CHAPEL HILL, NC

778

PENSACOLA-FERRY PASS-BRENT, FL

767

WINSTON-SALEM, NC

756

ASHEVILLE, NC

747

MCALLEN-EDINBURG-MISSION, TX

720

LAFAYETTE, LA

697

SPRINGFIELD, MO

694

SPOKANE-SPOKANE VALLEY, WA

691

LANSING-EAST LANSING, MI

680

PORT ST. LUCIE, FL

679

MODESTO, CA

671

RENO, NV

666

SYRACUSE, NY

666

FAYETTEVILLE, NC

666

SALISBURY, MD-DE

660

PORTLAND-SOUTH PORTLAND, ME

649

YOUNGSTOWN-WARREN-BOARDMAN, OH-PA

641

SPRINGFIELD, MA

627

POUGHKEEPSIE-NEWBURGH-MIDDLETOWN, NY

622

SCRANTON--WILKES-BARRE, PA

613

FORT COLLINS, CO

605

LUBBOCK, TX

597

MOBILE, AL

597

KILLEEN-TEMPLE, TX

589

CRESTVIEW-FORT WALTON BEACH-DESTIN, FL

587

VALLEJO, CA

583

FORT WAYNE, IN

579

Source: FRANdata

Note: Data based on most current FDDs.

LARGEST FRANCHISEES BY U.S. REGION

EAST

(DC, DE, MD, NJ, NY, PA, WV)

UNITS

FLYNN GROUP

269

SUMMERWOOD CORPORATION

192

HAZA GROUP

146

KBP BRANDS

145

KOVAN GROUP/DEKK GROUP/NGP MANAGEMENT

145

MIDWEST

(IL, IN, MI, MN, OH, WI)

UNITS

THE DHANANI GROUP

371

FLYNN GROUP

341

KBP BRANDS

280

ALLINE SALON GROUP

191

MOUNTAIN WEST

(CO, ID, MT, UT, WY)

UNITS

FLYNN GROUP

236

SIZZLING PLATTER

135

ALVARADO RESTAURANT NATION/ALARADO HOLDINGS/PALO ALTO

104

HARMAN MANAGEMENT CORPORATION

103

MBN BRANDS

80

NEW ENGLAND

(CT, ME, MA, NH, RI, VT)

UNITS

CAFUA MANAGEMENT COMPANY (CMC)

168

KOVAN GROUP/DEKK GROUP/NGP MANAGEMENT

158

THE DHANANI GROUP

98

COUTO MANAGEMENT GROUP/DARTMOUTH MANAGEMENT GROUP/CAPE MANAGEMENT TEAM

95

HK ENTERPRISES

85

PLAINS

(IA, KS, MO, NE, ND, OK, SD)

UNITS

FLYNN GROUP

489

ROTTINGHAUS COMPANY

285

LOVE’S TRAVEL STOPS & COUNTRY STORES

198

K-MAC ENTERPRISES

177

FUGATE ENTERPRISES

138

SOUTH

(AL, AR, FL, GA, KY, IA, MS, NC, SC, TN, TX, VA)

UNITS

FLYNN GROUP

900

THE DHANANI GROUP

843

SUN HOLDINGS (RMH FRANCHISE—APPLEBEE’S)

705

KBP BRANDS

498

SOUTHWEST

(AZ, NV, NM)

UNITS

DESERT DE ORO FOODS

182

MERRITT GROUP

148

TERRIBLE HERBST 

128

WENDYS OF COLORADO SPRING/HOLLAND BUERK ENTERPRISES

123

DIVERSIFIED RESTAURANT GROUP (DRG)

96

WEST

(AK, CA, HI, OR, WA)

UNITS

G & M OIL CO

285

FLYNN GROUP

247

HARMAN MANAGEMENT CORPORATION

239

AKASH MANAGEMENT

234

AMERICAN WEST RESTAURANT GROUP

229

Source: FRANdata

Note: Data based on most current FDDs.

Published: December 20th, 2024

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