The Top 100 Global Franchises ranking is a snapshot of how a number of the most successful franchises in the world fared in the past year compared to the year before. The ranking pays special attention to franchises that have expanded beyond their native borders and operate in at least two countries.
This year, there were more franchises than ever vying for the ranking. Also, as we move into the second decade of the ranking, we’ve made slight changes to the ranking. The ranking formula now uses sales instead of total revenue, and we’ve added percentage unit growth as a factor. Why? While it’s really impressive when a franchise like KFC adds hundreds of franchisees in a year, it may be more impressive when a newer and smaller system like F45 Training does it. For comparison, KFC has been franchising for almost 70 years and has over 21,000 locations in operation. F45 has been franchising for five years and currently has less than 1,000 locations.
However, while longevity, unit growth and sales numbers are important, the Top 100 is an attempt to go beyond the numbers. That’s why the formula used to tabulate the ranking also takes into account whether the franchises help prospective franchisees fund their franchise dream, as well as how they give back to their communities via local programs or charity work. Data is gathered from company submitted data, financial filings, franchise disclosure documents (FDDs), and other published industry sources. The data collected for each franchise is entered into a proprietary computer formula making the outcome as objective as possible.
IMPORTANT: Please note the Top 100 Global Franchises ranking is not intended to endorse, advertise, or recommend any particular franchise system nor is it a definitive list. More on the methodology can be viewed here.
Top 100 Overview
In the history of the Top 100, only two franchises have ever topped the ranking: McDonald’s (2009, 2010, 2016 through 2018) and Subway (2011 through 2015)—each with five appearances at #1. For 2019, McDonald’s breaks the tie for most appearances at the top. Even in times when the franchise has encountered its relative downtimes, it has yet to drop below the top three.
McDonald’s certainly wasn’t the first franchise, but you can make the argument that it’s the one that has had the most effect on the industry. Take, for example, its effect on the founder of fellow Top 100 franchise Edible Arrangements Tariq Farid, whose first job was at the fast food giant:
“They had systems. Where there are systems, you can excel. When you went in, they gave you training. I started out by watching a video and you're cleaning the bathrooms, you're cleaning the reception area. But you knew what the next stage was. I learned most of the systems from there, and then when I wanted to franchise my company, I remembered all those things.”
Burger King moves up to #2 after a South American swell in business. According to Iuri Miranda, chief executive officer of BK Brasil SA, the burger franchise is currently opening a new site in Brazil every three to four days. There are now well over 900 BK restaurants in the South American country. Coincidentally, Burger King’s parent company, Restaurant Brands International Inc., is controlled by a Brazilian private equity firm, 3G Capital.
(Note: More on why Burger King is growing so fast in Brazil, along with where multiple franchises are focusing their non-US expansion efforts, is explored in the International Franchise Growth section of the report.)
Pizza delivery time has become a specified area for improvement for many pizza franchises. Pizza Hut is responding to the challenge of reducing customer wait times by literally taking the show on the road.
In October 2018, the #3 franchise in this year’s ranking partnered with Toyota to debut its new Tundra Pie Pro. The zero-emission vehicle houses a working pizza kitchen in the truck bed, enabling a pie to be made anywhere within six to seven minutes. In statement, Pizza Hut claimed that the development of the truck would allow them to bypass the restraints of a typical delivery radius.
Marriott International (#4) used its portfolio of 30 brands to sign management and franchise agreements for 816 properties in 2018. The hotel franchise experienced a record number of room signings in places where international travel is surging. These destinations include Europe, the Middle East, Africa, and the Asia-Pacific region.
KFC (#5) is making its Chicken Mastery Certification training more interactive by using VR (virtual reality). Called “The Hard Way,” the escape room-like simulation consists of mini games detailing the five steps of the franchise’s chicken-frying process, under the control of an animated Colonel Sanders. The VR simulation is being used as a supplement to the company’s e-learning and hands-on training.
Dunkin’ Donuts (#6) is making itself over for the New Year and beyond. The Massachusetts-based company is formally dropping the “Donuts” from its branding, opting to now formally go by simply “Dunkin’”. “By simplifying and modernizing our name, while still paying homage to our heritage, we have an opportunity to create an incredible new energy for Dunkin’, both in and outside our stores,” said Tony Weisman, the Chief Marketing Officer for the franchise’s U.S. operations.
The largest franchise network by number of units, #7 7-Eleven enters 2019 looking to “adopt [more] consumer-facing technology to enhance the customer experiences.” The convenience store is not only focusing on digital payment options, but also a smartphone app, social media customer service bots, allowing customers to pay bills at participating locations, and more.
Subway (#8) has seen a lot of change in the past year. Not is the franchise searching for a new CEO (more on that later), it also saw its vice president of North American operations, James Walker, step down in January. In addition, Joe Tripoldi retired as Subway’s chief marketing officer at the end of 2018.
Domino’s (#9) makes a move into the top 10, largely based on its revamp to a more technological and digitally-driven business model. In fact, digital sales now account for 65% of all orders for the pizza franchise.
The company wants to add at least 2,000 locations in the U.S. by 2025, part of a worldwide growth strategy that has a goal of adding 10,000 total locations in that timeframe. But an interesting point of development is Domino’s is making a priority of ensuring its franchisees know what it’s like for their employees on the front line. According to CEO Ritch Allison, all Domino’s operators in the U.S. have to start working in stores before they can become franchisees.
Sibling brand to Dunkin’ (both are part of the parent company Dunkin’ Brands), Baskin-Robbins rounds out the top 10. The ice cream franchise is rolling out a new store concept this year that it hopes will “help guests create joyful moments with family and friends while enjoying great-tasting ice cream and amazing flavor variety.”
A little further down the ranking, Wendy’s (#15) is banking on delivery to keep its same-store sales growing. Currently, no less than 40% of Wendy’s locations in North America are offering delivery service. The chain noted in its 2018 Q2 results that average check sizes for delivery customers are one-and-half to two times higher than in-store orders.
Three European veterans of the Top 100: #16 Groupe Auchan (via its Auchan Retail division), Groupe Casino (#19), and Dia (#44) joined forces along with METRO and Schiever for a new generation service platform called Horizon in 2018. According to an Auchan Retail business report filing, “Horizon is one of the top tier international platforms for collaboration with suppliers, covering more than 40 countries in Europe, Asia and South America.”
Taking a page from the McDonald’s playbook, Tim Hortons (#33) started its own all-day breakfast program in August with hopes of jumpstarting sales, which have gone flat over the past couple years for various reasons. The coffee franchise is also reportedly working on a kids menu for the first time and testing a loyalty program to generate more sales.
Another year of fast growth has Orangetheory Fitness (#47) reaching all kinds of milestones. In 2018, the fitness studio franchise reached $1 billion in sales and grew its system by over one-third, eclipsing the 1,000 locations plateau. For 2019, growth plans are still at a high volume. The company has reported it has over 500 new studios in development. In addition, CEO Dave Long is looking forward to another milestone: reaching the 1 million members mark.
We’ve already touched on about BK Brasil’s expansion of its namesake brand Burger King in the country, but it also has an agreement with #50 Popeyes (also part of Restaurant Brands International) for the exclusive right to develop and operate the fried chicken franchise in Brazil. The company plans to open 300 Popeyes restaurants over the next decade.
In the latter part of 2018, the Dwyer Group, parent company of 21 service brands—including ranking newcomers Mr. Rooter (#52) and Rainbow International Restoration (#63)—changed its name to Neighborly to better reflect the portfolio of franchise concepts it has amassed over the years. Earlier in the year, the group of franchise brands was acquired by New York-based private equity firm Harvest Partners, LP.
Top 100 Newcomers
Speaking of newcomers, we had a significant number of franchises debut in the Top 100 this year. In addition to the aforementioned Mr. Rooter and Rainbow International Restoration, here’s a little more about them…
Founded in 1966, Interim HealthCare (#24) bills itself as the nation's oldest health care franchise company. Services provided by the company include: home care, health care staffing and hospice.
Jollibee (#41) is a Filipino fast food franchise with around 1,300 locations worldwide. Operating in the United States since 1998, it recently opened its 37th U.S. restaurant near Times Square, where a number of devoted fans camped out in a Nor’easter for up to 20 hours to be the first patrons of the new location.
People are keeping their cars longer, so naturally they’re going to need places to help them maintain their vehicles. CARSTAR (#79) offers comprehensive auto body repair services, from minor dents and dings to more major accident damage.
Abrakadoodle (#83) is an art franchise for kids and adults. It’s based around a comprehensive art education program developed by Mary Rogers and Rosemarie Hartnett.
Freshii (#86) has a goal “to help citizens of the world live better by making healthy food convenient & affordable.” The Canadian-based fast casual food franchise is closing in on 400 locations in 20 countries.
Once Upon A Child (#90) is one brand of resell retail franchise giant Winmark Corporation. Resell retail franchises buy items that are in “like new” or “gently used” condition from customers and then resell them to other customers at a discounted rate to other customers. Once Upon A Child deals with children’s clothing and toys.
Strangely enough, Charleys Philly Steaks (#95) wasn’t founded in Philadelphia. It was founded in Columbus, Ohio on the campus of The Ohio State University as Charley’s Steakery. The company switched to its current moniker in 2012.
As touched upon in the opening, F45 Training (#99) experienced an eye-catching growth rate in the past year. The fitness franchise started last year with 545 then added 355 locations, bringing its system to 900—a growth of 65.1%.
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Next up in our report is our section covering a couple major headlines from the past year in franchising. Headlines include major high-level corporate changes at several franchises, and the continuing debate over the joint employment liability of franchisors.
You can also jump to our coverage of:
International franchising, with a focus on where franchises have been expanding to, as well tips for franchisors on what to keep in mind when expanding into other countries. There is also a franchise industry spotlight for the Dominican Republic, a country showing a lot of promise for franchise expansion.
Honorable mentions, including a feature of some up-and-coming brands and a chart showing the franchises that just missed the Top 100 for 2019.
The sections of the report can be accessed via the links above, as well as with the “previous” and “next” buttons at the bottom of each report page.