2024 Mega 99: Rising Trends in Multi-Unit Franchising

By: Christina Niu | 12,188 Reads | 38 Shares

Featured in: Multi-Unit Franchisee Magazine: Issue 1, 2024

With more than 420,000 franchised units owned by 234,000 franchisees in the system, multi-unit operators (MUOs) are shaping franchising’s future. Notably, MUOs in the U.S. control more than 50% of all franchised units, marking a substantial shift in the franchising paradigm.

According to our latest data, the number of MUO franchisees with more than 50 units has surged by an impressive 112.3% since 2019 with certain sectors exhibiting even higher concentrations. MUOs hold a significant share in various sectors, dominating 82% of QSR units, 71.5% of beauty-related franchises, and 72% of sit-down restaurants across the U.S.

In 2024, large multi-unit ownership and consolidation will continue to gain traction. One key driver of this trend is the positive perception of multi-unit franchise operators by the lending community.

There have been significant changes in the eligibility and application process for Small Business Administration (SBA) loans. In addition, repayments and refinancing out of SBA loans negatively affect secondary market premiums, reducing the amount of capital an SBA department has to lend. These factors are pushing lenders to target high-quality borrowers. Interest rates may remain unchanged longer than anticipated because the Federal Reserve isn’t expected to make cuts until later this year. This further emphasizes the need for borrowers to be financially well equipped as business loans become less affordable.

Another prominent trend is mid-to-large-sized multi-unit owners acquiring brands outside of their typical industry. For example, seasoned QSR franchisees, known for their successes with brands like Papa Johns and Qdoba Mexican Grill, are targeting Phoenix, Arizona, with a multi-unit franchise agreement with GLO30, a skincare franchise concept. Our analysis of Dunkin’ franchisees shows that 14% own another franchise brand, and those brands range from oil change concepts to optometry and health clinics.

In addition, multi-unit franchisees are actively exploring diverse strategies to fuel growth, and one approach gaining momentum involves considering alternative locations, like airports and travel centers. Nontraditional locations present opportunities for franchisees to adopt various business formats, catering to emerging trends and consumer preferences. It allows them to broaden customer outreach and operate with lower overhead costs, promoting efficiencies. Franchisees from well-known brands, such as Arby’s, Taco John’s, Wendy’s, Bojangles, McDonald's, and others, are successfully expanding their footprints this way.

The trends in multi-unit franchising reflect a dynamic industry responding to economic shifts, regulatory changes, and entrepreneurial ambitions. As the landscape evolves, adaptability and strategic decision-making will be pivotal for stakeholders navigating 2024.

Christina Niu is director of research at FRANdata.

2024 MEGA 99 RANKINGS

RANK	COMPANY	UNITS	BRANDS
1	FLYNN GROUP	2,709	Pizza Hut, Applebee’s, Arby’s, Taco Bell, Wendy’s, Panera Bread, Planet Fitness
2	SUN HOLDINGS	1,755	Arby’s, Popeyes, Burger King, Applebee’s, Papa Johns, GNC Live Well, McAlister’s Deli, IHOP, Golden Corral, T-Mobile, Taco Bueno, Rodeo Bar, Cantina Laredo, Papi’s Caribbean Grill
3	THE DHANANI GROUP	1,493	Burger King, Popeyes, Pizza Hut, Dunkin’, La Madeleine, Baskin-Robbins
4	KBP BRANDS	1,107	KFC, Taco Bell, Arby’s
5	CARROLS RESTAURANT GROUP	1,092	Burger King, Popeyes
6	TARGET	831	Pizza Hut
7	LOVE’S TRAVEL STOPS & COUNTRY STORES	717	Subway, Godfather’s Pizza, Chester’s, Arby’s, Hardee’s, Carl’s Jr., Taco John’s, Sleep Inn by Choice Hotels, Holiday Inn, Fairfield by Marriott, Dunkin’, Microtel Inn & Suites by Wyndham, DQ Treat, Naf Naf Middle Eastern Grill, Bojangles, Best Western Hotels & Resorts, MainStay Suites Extended Stay by Choice Hotels, Jet’s Pizza, Bimbo Foods Bakeries Distribution, Hampton Inn by Hilton
8	PILOT COMPANY	686	Subway, Cinnabon, Dunkin’, Wendy’s, Arby’s, Taco Bell, DQ Treat, Auntie Anne’s, Pizza Hut, Moe’s Southwest Grill, Comfort, Chester’s, Little Caesars, KFC, IHOP
9	HAZA GROUP	538	Wendy’s, Taco Bell
10	SIZZLING PLATTER	523	Little Caesars, Jamba, Wingstop, Dunkin’, Sizzler, Red Robin Gourmet Burgers
11	TEAM CAR CARE	509	Jiffy Lube
12	ARAMARK	503	Chick-fil-A, Einstein Bros. Bagels, Subway, Panda Express, Dunkin’, Oath Pizza, Which Wich, Moe’s Southwest Grill, Steak ’n Shake, Qdoba Mexican Eats, Jamba, Papa Johns, Freshii, Raising Cane’s, Taco Bell, Erbert & Gerbert’s Sandwich Shop, Panera Bread, Mooyah, Tim Hortons, Auntie Anne’s, Village Juice Co., PJ’s Coffee of New Orleans, Caribou Coffee, Quiznos, McAlister’s Deli, Chili’s, Paciugo Gelato & Caffe, BurgerFi, La Madeleine, Extreme Pita, Pizza Hut, Rusty Taco, Baja Fresh, Wendy’s, Denny’s, Smashburger, Jersey Mike’s Subs
13	GPS HOSPITALITY	501	Burger King, Pizza Hut, Popeyes, Days Inn by Wyndham
14	ARMY & AIR FORCE EXCHANGE SERVICES	481	Subway, Burger King, Charleys, Popeyes, Arby’s, Taco Bell, Qdoba Mexican Eats, Einstein Bros. Bagels, Baskin-Robbins, Dunkin’, Rice King, Wing Zone, Regal Nails Salon & Spa, Slim Chickens, Pizza Hut, Taco John’s
15	CMG COMPANIES	458	KFC, Sonic, Rent-A-Center, Taco Bell, Little Caesars, Ace Hardware
16	CHARTER FOODS	440	Taco Bell, Long John Silver’s, KFC, Pizza Hut, A&W
17	AMPLER GROUP	434	Burger King, Little Caesars, Church’s Texas Chicken, Taco Bell, Pizza Hut
18	SUMMIT RESTAURANT GROUP	409	IHOP, Applebee’s, Sonny’s BBQ
19	PACIFIC BELLS	395	Taco Bell, Buffalo Wild Wings, KFC
20	WKS RESTAURANT GROUP	381	Wendy’s, Denny’s, El Pollo Loco, Krispy Kreme Doughnuts, Blaze Pizza
21	HARMAN MANAGEMENT CORPORATION	379	KFC, A&W, Taco Bell, Long John Silver’s
22	AMPEX BRANDS	367	KFC, Pizza Hut, Long John Silver’s, Taco Bell, A&W
23	JIB MANAGEMENT (YADAV ENTERPRISES)	357	Jack in the Box, Denny’s, TGI Fridays, El Pollo Loco, Sizzler, Super 8 by Wyndham, Quality by Choice Hotels
24	TACALA	348	Taco Bell
25	ALLINE SALON GROUP	347	Supercuts, Cost Cutters Family Hair Salon
26	ROTTINGHAUS COMPANY	346	Subway
27	QUALITY RESTAURANT GROUP	342	Pizza Hut, Sonic, Moe’s Southwest Grill, Arby’s
28	TASTY RESTAURANT GROUP	338	Pizza Hut, KFC, Burger King, Taco Bell, Baskin-Robbins
29	MERITAGE HOSPITALITY GROUP	337	Wendy’s
30	FRASIER ENTERPRISES	336	Miracle-Ear
31	HEARTLAND RESTAURANT GROUP	331	Hardee’s, Dunkin’
32	K-MAC ENTERPRISES	327	Taco Bell, KFC
33	DIVERSIFIED RESTAURANT GROUP	315	Taco Bell, Arby’s
34	COMPASS GROUP USA	303	Chick-fil-A, Einstein Bros. Bagels, Papa Johns, Panda Express, Dunkin’, Subway, Pizza Hut, Moe’s Southwest Grill, Jamba, Steak ’n Shake, PJ’s Coffee of New Orleans, Jersey Mike’s Subs, Wendy’s, Caribou Coffee, Qdoba Mexican Eats, Tim Hortons, Which Wich, Chili’s, Slim Chickens, Freshii, Taco Bell, Bojangles, Sbarro, Pita Pit, Smashburger, Firehouse Subs, KFC, Freddy’s Frozen Custard & Steakburgers, illy Caffe, Auntie Anne’s, The Habit Burger Grill, Panera Bread, MOD Pizza, Burger King, Baja Fresh, Quiznos, Baskin-Robbins, Erbert & Gerbert’s Sandwich Shop, Blimpie, Planet Smoothie, Popeyes, Pinkberry
34	BODDIE-NOELL ENT	303	Hardee’s
36	DESERT DE ORO FOODS	302	Taco Bell, Pizza Hut, KFC
37	SODEXO	300	Chick-fil-A, Einstein Bros. Bagels, Subway, Dunkin’, Pizza Hut, Qdoba Mexican Eats, Jamba, Moe’s Southwest Grill, Steak ’n Shake, Taco Bell, Garbanzo Mediterranean Fresh, Erbert & Gerbert’s Sandwich Shop, Freshii, PJ’s Coffee of New Orleans, Baskin-Robbins, Panera Bread, McAlister’s Deli, Papa Johns, Blaze Pizza, Baja Fresh, The Habit Burger Grill, Burger King, Auntie Anne’s, Firehouse Subs, Denny’s, NrGize Lifestyle Cafe, Which Wich, Godfather’s Pizza, Sbarro, Mrs. Fields, DQ Treat, Barry Bagels, Gold Star Chili
37	MASON-HARRISON-RATLIFF ENTERPRISES	300	Sonic
39	LUIHN VANTEDGE PARTNERS	290	Taco Bell, Dunkin’, KFC, Take 5 Oil Change Center, Long John Silver’s, Pizza Hut
40	PURPLE ROCK INVESTMENT COMPANY	286	Dunkin’, Rent-A-Center, Popeyes, RimTyme, Baskin-Robbins, Take 5 Oil Change Center, American Family Care, The Brass Tap Craft Beer Bar
41	G & M OIL	285	Chevron, ExtraMile
41	FEAST ENTERPRISES	285	Jack in the Box, Denny’s, Popeyes
43	THE COVELLI FAMILY LIMITED PARTNERSHIP	283	Panera Bread, DQ Grill & Chill, O’Charley’s, DQ Treat, Oath Pizza
44	EYM GROUP	272	Pizza Hut, Denny’s, KFC, Panera Bread, Taco Bell
45	AMERICAN WEST RESTAURANT GROUP	270	Pizza Hut
46	DL ROGERS CORP	269	Sonic
47	GS DALLAS GROUP	266	Wingstop, Subway, European Wax Center, Fajita Pete’s
48	HMS HOST	260	Burger King, Sbarro, Chili’s, Roy Rogers, Quiznos, Popeyes, Chick-fil-A, Nathan’s Famous, Auntie Anne’s, California Pizza Kitchen, Pizza Hut, Cinnabon, Smashburger, Dunkin’, Panda Express, La Madeleine, Firehouse Subs, Moe’s Southwest Grill, Einstein Bros. Bagels, TCBY, Blaze Pizza, The Counter, Kelly’s Cajun Grill, Carl’s Jr., On The Border, Baja Fresh, BurgerFi, Paciugo Gelato & Caffe, Great Steak, Steak ’n Shake, Jersey Mike’s Subs, TGI Fridays, Blimpie, Wingstop, Cold Stone Creamery, Maggiano’s Little Italy
49	MANNA	259	Wendy’s, Blaze Pizza
50	FUGATE ENTERPRISES	254	Pizza Hut, Taco Bell, Sonic
51	TA OPERATING	248	Popeyes, Taco Bell, Burger King, Subway, Pizza Hut, Dunkin’, Arby’s, Charleys, Fazoli’s, Black Bear Diner, Wendy’s, A&W, Baskin-Robbins, IHOP, Carl’s Jr., Tim Hortons, TacoTime, Jamba, DQ Treat, Super 8 by Wyndham, KFC
52	FOURTEEN FOODS	241	DQ Grill & Chill, DQ Treat
53	BANDON HOLDINGS	226	Anytime Fitness
54	ADT PIZZA	223	Pizza Hut, Taco Bell, Sonic, Little Caesars
55	APPLE HOSPITALITY REIT	218	Hilton Garden Inn, Hampton Inn by Hilton, Courtyard by Marriott, Homewood Suites by Hilton, Residence Inn by Marriott, Home2 Suites by Hilton, TownePlace Suites by Marriott, Fairfield by Marriott, SpringHill Suites by Marriott, Marriott Hotels, Embassy Suites by Hilton, Hyatt Place, Hyatt House
56	BORDER FOODS	217	Taco Bell
56	PREMIER KINGS	217	Burger King, Popeyes
58	AKASH MANAGEMENT	216	Carl’s Jr., Pieology Pizzeria, Jamba, Arby’s, Wingstop
59	CAFUA MANAGEMENT COMPANY	215	Dunkin’
60	NORTHWEST RESTAURANTS	211	Taco Bell, KFC, A&W
60	ATTICUS FRANCHISE GROUP	211	Sonic, Massage Envy, Crunch, European Wax Center
62	ALVARADO RESTAURANT NATION	203	Taco Bell, KFC, Pizza Hut
62	COTTI FOODS CORPORATION	203	Wendy’s, Taco Bell, Pieology Pizzeria
62	H&S ENERGY PRODUCTS	203	Chevron, ExtraMile, Texaco
65	PJ UNITED	199	Papa Johns
65	YELLOWHAMMER SALON GROUP	199	SmartStyle, Cost Cutters Family Hair Salon, Supercuts
65	NITU GROUP	199	Subway, Supercuts, Cost Cutters Family Hair Salon, Church’s Texas Chicken
68	INTERFOODS OF AMERICA (SAILORMEN)	198	Popeyes, Taco Bell, Burger King
68	GHAI MANAGEMENT SERVICES	198	Burger King, Taco Bell, Popeyes, Blaze Pizza
70	HAMRA ENTERPRISES	197	Wendy’s, Panera Bread, Noodles & Company
71	FRESH DINING CONCEPTS	196	Auntie Anne’s, Jamba, Cinnabon, Carvel
71	KOVAN GROUP	196	Dunkin’, Baskin-Robbins
73	A3H FOODS	195	Jack in the Box
74	BAJCO	189	Papa Johns
75	WENDYS OF COLORADO SPRINGS	187	Wendy’s
75	HENLEY ENTERPRISES	187	Valvoline Instant Oil Change
77	UNITED PF	186	Planet Fitness
78	MERRITT GROUP	183	Sonic
79	CAVE ENTERPRISES OPERATIONS	182	Burger King
80	RPM PIZZA	178	Domino’s Pizza
81	CIRCLE K STORES	170	Subway, Krystal, Church’s Texas Chicken, Blimpie, Hardee’s, DQ Treat, Noble Roman’s, Amato’s, Huddle House
82	WARNER FOODS	168	Jack in the Box, Noodles & Company, Panera Bread, Black Bear Diner, Popeyes
82	SOUTHERN ROCK RESTAURANTS	168	McAlister’s Deli
84	TEAM LYDERS (SUNDANCE)	167	Taco Bell, Arby’s
85	FULENWIDER ENTERPRISES	164	KFC, Taco Bell
86	FRESH ALTERNATIVES	163	Subway
87	CALIFORNIA FOOD MANAGEMENT	163	Burger King, IHOP
88	JRN	162	KFC, Pizza Hut
89	CARLISLE	162	Wendy’s
90	CHUNARA GROUP OF COMPANIES	160	Dunkin’, Checkers & Rally’s, Baskin-Robbins, My Eyelab, TGI Fridays, Popeyes, Take 5 Oil Change Center, Blaze Pizza, Kale Me Crazy, Church’s Texas Chicken
91	DELIGHT RESTAURANT GROUP	156	Wendy’s, Taco Bell
92	SUMMERWOOD CORPORATION	155	Taco Bell, KFC
92	CHAAC FOODS /ADF COMPANIES	155	Pizza Hut, Bojangles, Applebee’s
94	SUBWAY DEVELOPMENT OF CENTRAL FLORIDA	154	Subway
94	MANNA DEVELOPMENT GROUP	154	Panera Bread
96	B&G FOOD ENTERPRISES	151	Taco Bell, KFC
96	AES RESTAURANTS	151	Arby’s
98	AMBROSIA QSR	150	Burger King, Popeyes
99	COASTAL QSR	149	Taco Bell