Franchising leading businesses?
This might sound like a stupid question, especially within a magazine called entrepreneur Which publishes version 43 of the world’s largest and most trusted franchise rating. However, as many in the industry will attest, the question remains.
Critics say sure, franchising is business ownership — but entrepreneurship requires boldness and innovation. We tell him: Do you want to see courage and innovation? Look at what the franchise did in 2020 and 2021.
It was a time of economic uncertainty, false starts, sudden change, and waves of fear. Some sectors, such as teaching centers and gyms, have not been able to follow their core business models. Others, such as restaurants, have had to adapt to ever-changing environments and consumer needs.
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But despite this, the industry has grown. The companies on our list of 1,177 – that is, 500 that were ranked and 677 that were verified but not ranked – grew in units by 2.9%. This translates to 17,082 new units opened worldwide, which can reasonably be considered as 17,082 new businesses serving 17,082 communities in 17,082 purposeful, purposeful and intelligent ways.
Was it difficult? You bet it was. The growth rate in 2019 was 4.09%, which means that the franchise, like any other industry, is still driving the headwinds of an epidemic that will not stop. This requires every individual franchisee to be agile. To connect deeply with their community. To lock the weapon with the franchisor. To showcase boldness and innovation.
to be an entrepreneur.
What is an entrepreneur anyway? In this journal, we define her as someone who makes things happen for themselves. This is what franchisees do every day.
Our list is based on franchise data from July 31, 2020 to July 31, 2021. As we looked through the results, we saw some interesting trends that could tell the story of franchise entrepreneurship.
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Entrepreneurs solve people’s problems.
As consumers continued to spend more time at home last year, the home improvement category boomed — 34 companies ranked in the Franchise 500 list (up from just 26 last year). In terms of average franchise growth in the US, it was the third fastest growing category on the list, with its brands adding an average of over 11 new franchisees.
Entrepreneurs are flexible.
The food industry’s share of ratings has been declining over the past few years, but it has reversed that trend this year—particularly the express service category, which went from 80 rated franchises in 2021 to 97 in 2022. Nearly 20% of the top 500 service companies Fast, along with more than 25% of the top 100 companies. Interestingly, some of the bigger and more popular brands in this category lost units this year, but the category as a whole came out strong. As a result of the growing demand for healthy options and delivery services, we’ve added three new categories to the list: salads, and mock kitchens.
Entrepreneurs are creative.
The yard sign rental market has exploded so much, we needed to add it as a category in our list. It became the category with the highest average growth for franchises in the United States, with the two companies within it—both relatively new—adding 569 joint franchises in one year. The success of this category points to some trends as well: People are looking for perks for a low investment, and this can be run from home as a part-time job.
Entrepreneurs go wherever the opportunity arises.
Lately, that means crossing the line. International growth continues to outpace growth in the United States, as it has for years, though the gap narrows — 6,179 US franchises were added this year versus 7,741 international franchises. (Meanwhile, two years ago they were 9,212 and 12,720 respectively.) Overall, US franchises make up about 52% of all units, and international franchises make up about 39%.
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In short, this is not just a list of 500 companies ranked (and 677 companies we look forward to following). This is a list of companies – and therefore individuals – who have recycled, adapted, and reinvented themselves with a constant focus on what people need. right Now. They got rid of old playbooks. They tried. They’ve found new (and maybe even better!) ways to work and help people. And they were rewarded for it.
There are certainly more challenges ahead. But the franchise industry has made its point: It’s built on resilience. Franchisees and franchisees are full of determination and innovation. They will approach everything in the spirit of entrepreneurship, because this is their essence. Let no one say otherwise.
To see our full 500 rankings, please click here and see the stories below.
#1: How Taco Bell became the world’s biggest franchise
#2: Why UPS Store is the Best Business Services Franchise You Can Buy
#3: Internet Culture and Chick-Fil-A Feud Helped Popeye Reach Unprecedented Cultural Relevance and Become a Top 5 Franchise
#4: How continuous expansion and fair wages help Jersey Mike stay ahead of the competition
#5: How Culver Turned a Prank Into a Bestselling List Item and Became a Top 5 Franchise
#6: How Komon Ride the Choppy Waves of Childhood Learning to the Top of a Franchise
#7: How Planet Earth’s Fitness during temporary pandemic lockdowns has boosted to become one of the best perks in the country
#8: Amid unprecedented weather events, Servpro disaster cleaning franchise sees 20% financial growth
No. 9: 7-Eleven is reinventing itself to meet changing customer expectations, becoming one of the best franchises of the year
No. 10: Tropical Smoothie Cafe continues its nine-year streak of growth as we all strive for good health
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