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The Top 100 Global Franchises 2016 Report Highlights the Ever-Changing Nature of the Industry

Top 100 Global Franchises 2016

The franchising industry is constantly changing, and each year Franchise Direct is here to reveal those changes in our Top 100 Global Franchises Report. The brands featured on this list from around the world continue to prove their willingness and desire to innovate newer and better ways to operate all the time, and this willingness is reflected in their rankings within the Top 100.

This year saw a shake-up in the top two spots. For the first time since 2010, McDonald’s (#1) has once again slid back to the top of our ranking. McDonald’s saw impressive same-store sales increases both domestically and internationally in the last two quarters of 2015. The reason for this change? – The all-day breakfast. McDonald’s has finally given their customers what they’ve been demanding, proving that when you listen o and respond to your customers, you can grow your business immensely. That leaves Subway to fill the #2 slot. The sandwich global giant faced a trying year of legal woes, attacks on product quality, and the passing of one of its co-founders. But with a new chief marketing officer in tow, the sandwich chain is set to resurrect its brand image in the upcoming year.

The Top 10 also shows things going well for hoteliers. People are traveling again and are checking back in to hotels, and hotel franchising is back on the rise. Hilton Worldwide (#9) is ready to introduce a new brand, Tru by Hilton, that is expected to open its first unit late this year. Wyndham Hotel Group (#7), InterContinental Hotel Group (#8), Marriott International (#10) and Choice Hotels (#30) also did well in 2015.

It’s no surprise that most of the franchises on the Top 100 list originated in the United States. However, the rankings boast a diverse group of origin countries. Brands ranked closest to the top that started outside the U.S. include British brand InterContinental Hotel Group (#8), French brands Groupe Casino (#12) and Carrefour (#16), and Spanish brand Dia (#19).

If you want to know how to go about expanding your brand internationally, the report gives a look at what you need to be successful. The top area to expand internationally in the last year has been Latin America. Late in the summer, U.S. Franchise Trade Mission took participants, including Arby’s (#79) and FASTSIGNS (#90), to Costa Rica, Guatemala, and El Salvador.

The report also takes a look at the big challenge the industry faces in the upcoming year – the decision on joint-employer status from the National Labor Relations Board. If franchises are ruled joint employers, American franchise corporations would be held accountable for what happens at their individual chain locations, potentially changing the way franchisors and franchisees interact with one another. View the full Top 100 ranking and report.

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