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Industry Trends


Market Share Distribution by Industry 

Franchise Industry % Market Share    Establishments % Change over Prior Year
Automotive 4.25% 38,340 1.8%
Commercial and Residential Services 6.33% 57,007 0.3%
Quick Service Restaurants 21.4% 192,827 3.1%
Table/Full Service Restaurants 5.4% 48,609 2.1%
Retail Food 7.85% 70,722 2.4%
Lodging 3.53% 31,827 -0.8%
Real Estate 4.62% 41,630 3.0%
Retail Products and Services 9.8% 88,312 2.3%
Business Services 25.71% 231,151 1.7%
Personal Services 11.11% 100,151 1.8%
Total   901,093 2.0%

 Source: 2010 Franchsie Business Economic Outlook, prepared by PriceaterHouseCoopers for the IFA.


Quick Service Restaurants

2009 represented one of the most challenging years for the restaurant industry. However, for the second year in a row the quick service restaurants industry has dominated the Top 10. The quick service restaurant category is the most vibrant, fastest-growing segment of the restaurant industry regardless of what the economy is doing. Six of the Top 10 franchises in Franchise Direct’s Top 100 Global Franchises are from the quick service category.
During the recession, a number of the QSR franchises from the Top 100 reported increases in sales. In May 2009, McDonald’s sales increased by 2.8% domestically and 5.1% internationally.  Burger King posted its 21st consecutive quarter of positive sales growth in June 2009, and Domino’s Pizza reported first quarter 2009 same store sales increases of 1% nationally and 6.6%  internationally. Now, with the recession behind us, and a total market share of the franchising sector at 21.4%, we can expect even more growth and expansion from this booming industry.[2]
The growth of the health industry

There has been an increased demand for the services that health and fitness franchises provide. This is due to health professionals advising people that regular exercise and nutrition are vital to a healthy and productive life, and the growing number of consumers who recognize the benefits of improved eating habits and exercise regimes. Achieving and maintaining optimum health is a common goal for people in many parts of the world today. Because of this the health and fitness franchises industry has experienced phenomenal growth in the last few years, with one franchise, Snap Fitness, placed at number 46 in Franchise Direct’s Top 100 Global Franchises. Snap Fitness has recorded nearly 50% growth over the past three years.
The highest ranking health retail franchise is GNC Franchising. GNC is one of the world's largest companies devoted to helping its customers improve the quality of their lives through nutritional supplements, and has been placed at number 24 in Franchise Direct’s Top 100 Global Franchises.
Of Franchise Direct’s Top 100 Global Franchises, seven belong to the health and fitness franchise industry. The health and fitness franchise industry does not yet have the unit numbers or the revenue enjoyed by the Top 10 companies, but with fitness industry revenues for 2008 being $19.1 billion and sales of $235 million last year for the health industry alone, the health and fitness industry is set for continued growth.


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