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Every year, Franchise Direct posts a list of Top 100 Global Franchises. The ranking is a snapshot look at the past year in franchising through the lens of many of the world’s biggest internationally-operating franchise brands. (To be eligible franchises must be operating in at least two countries.) We took a look back to get a feel for the decade that was in global franchising. Here’s some of what we found.
Over the course of the 2010s, 180 franchise entities made an appearance in our Top 100 ranking. They range across the whole spectrum of franchising, from hotels to pet care, home improvement to mailing and shipping, and so much more.
Unsurprisingly, food was king. Over 38% of the ranked franchises are part of the food franchise industry or a food-related industry segment. This count includes convenience stores, which, as we first highlighted in 2013, have made a concerted effort to become a bigger player for consumers’ on-the-go food dollars. The next most commonly occurring industries were cleaning and home services, which each accounted for just over 10% of the ranked franchises.
As the birthplace of modern-day franchising, it shouldn’t be surprising that the United States dominates as the home country for these franchises. Ten other countries also made the ranking as a country of origin for a ranked franchise brand (Australia, Canada, England, France, Germany, Japan, South Korea, Spain, Sweden, and the Philippines).
No franchise other than McDonald’s (2010, 2016-19) or Subway (2011-15) topped the list in any year. But it hasn’t been completely smooth sailing for either. Both experienced rough patches during the decade. By ranking criteria, Subway’s rough patch—the more recent of the two—hit harder, dropping it to a low of #10 in 2018. McDonald’s ranked #3 in its lowest ranking appearance to-date (2013).
Obviously, those two franchises made the ranking each year. In all, 37 franchises went 10 for 10, making our Top 100 ranking every year of the past decade. In addition, there are several franchises that made the ranking eight or nine times in the timeframe.
But, of course, not making the ranking each year isn’t a negative reflection of a franchise’s quality necessarily. There are factors beyond the franchises’ control that determines a franchise’s position.
For instance, Sport Clips has been a popular franchise brand since its inception in the 1990s, but it only made the ranking five of the last 10 years. Why? The company only began franchising internationally in 2013. After a brief period of building its international operating profile, Sport Clips entered the Top 100 ranking in 2015 and has been there ever since. Further, there are other franchises, such as OrangeTheory Fitness and F45 Training, that are a decade old or less—yet they’ve already made their presence known worldwide and in our ranking.
When it comes to trends, the joint employment debate has been a recurring theme. Starting in 2016, each edition of the Top 100 Global Franchises report has featured an update on the saga surrounding the question of how much responsibility franchise corporate offices bear for workers at individual franchise locations. And the debate hasn’t been confined to the United States. Governance in other countries such as Brazil, Australia, Canada, and Mexico have also weighed in on the matter in recent years. And given recent events, it will probably be mentioned once again.
A huge thank you to all of you who have taken the time to read our ranking and report! The 2020 edition of the Top 100 is scheduled to be out in February.
Have a wonderful and safe New Year!