The Ranking Uses Objective Standards to Determine the Top Franchises in the World
The Top 100 Global Franchises Ranking is the foremost research-based listing of 100 top franchises in the world. This annual industry benchmark is one of the leading franchise ranking reports, having been frequently quoted by industry professionals for its impartial findings. Franchise Direct has been providing the Top 100 Global Franchises list since 2009, making this the ninth annual edition.
The ranking is based on a methodology that considers a host of factors including financial performance and corporate citizenship. The Top 100, ranked according to objective and measurable criteria, have been selected from hundreds of franchises that have invested in international expansion programs. They all share a defined identity, a clear business plan, a strong commitment to training and support, implementation of best practices, an ability to innovate, and sensitivity to cultural and environmental issues.
Top franchises on this year’s list include McDonald’s, which maintained the number one spot it gained in 2016, followed by KFC entering second and Burger King following in third. Rounding out the Top 10 this year are hotel giants Marriott International, Wyndham Hotel Group and Hilton Worldwide, taking eighth, ninth and tenth place respectively. Many industries were represented throughout the ranking, including the food, hotel, automotive, fitness, and child education industries.
The criteria used to select the Top 100 out of hundreds of possible candidates includes quantifying the system size in terms of the number of units, analyzing system sales revenue, assessing stability and growth, the number of years in operation, and overall market expansion.
Each year, the list features several of the most successful franchise companies in the world. Franchise Direct believes it and the accompanying report are useful resources for US companies seeking expansion opportunities in markets, either local or global. In addition, this year’s report contains a look at select international markets along with spotlighting franchises that are successfully operating on a worldwide scale.
To view this year’s ranking and read the report, please visit the Top 100 Global Franchises page: http://www.franchisedirect.com/top100globalfranchises/
With Theresa May intending to trigger the official Brexit negotiation process by the end of March 2017 - thereby exiting the EU before summer 2019 - it is worth considering the potential impact of Brexit upon a substantial contributor to the UK economy: the franchise industry.
So more than four months after Britain's vote to leave the EU, where does the franchise industry stand? At Franchise Direct, the web's leading franchise portal, business is still going strong. Visitor numbers for the site remain steady; in fact, with no marked change in advertising or business structure, these figures have seen a slight increase in comparison to last year. Brian Rogan, Sales Manager for Franchise Direct UK, comments: "From what we've seen so far, Brexit doesn't seem to have had any negative effect on the UK franchise industry. New and exciting opportunities are coming on board with us on an almost continuous basis, and the feedback received from the majority of our existing client base has been very positive. We're also expecting a strong final quarter, with our email marketing campaigns almost already booked out for the remainder of the year."
Franchising has garnered a reputation for remaining a stronghold throughout periods of economic fluctuation, in view of its being considered a tried-and-tested, safe model in which to do business. Supporting this belief, bfa/Natwest franchise surveys have traced a 46% increase in franchising's contribution to the UK economy over the past decade, notwithstanding the global financial crisis. The surveys also showed that franchising was one of the few sectors to report growth during the crisis, further proving the industry's durability. As a sector which now contributes over £15 billion to the UK economy, its flourishing is a testament to the success of the many franchisors and franchisees who participate in its effective structure.
While it is difficult to predict the long-term effects of Brexit, it seems that the best or worst case scenarios will hardly spell disaster for UK franchising, as the figures have shown it sustaining itself as a robust industry during phases of economic inconstancy. All indicators appear to show that business owners and investors alike should continue to remain confident in the franchising model - a system which, let's not forget, has thrived for over half a century.
Franchise Direct are delighted to announce the launch of Franchise Europe, the latest portal in the Franchise Direct network. Franchise Europe is an English language directory for franchise opportunities across Europe. This new site is the only franchise directory offering franchisors and prospective franchisees a single platform to find opportunities across all 50+ countries in Europe.
Franchise Europe's goal is to provide a reliable, authoritative platform where entrepreneurs can connect with franchisors seeking investors. In support of this objective, our mission is to be the leading online resource for franchise opportunities and the knowledge centre of choice for anyone seeking information on the franchise industry.
The new website uses a brand new cross-platform responsive design which uses the latest in web design and development technologies to ensure website users get the best experience from which ever device they're on.
For further information about listing your franchise for sale on Franchise Europe, please get in touch here.
Franchise Direct is pleased to announce the opening of its first office in India. The office, which is located in Delhi, will be Franchise Direct’s Indian hub for franchise sales and support. It will initially employ three staff members.
India is growing rapidly as a franchise led economy (growth rates are in excess of 6pc year on year). The Franchise Association of India estimates value of industry to reach $35bn by 2020. There are approximately 3,000 franchise brands operating there and the franchise model is spread across several sectors ranging from fast food chains and retail outlets to educational institutions, healthcare and logistics. Franchise Direct India is currently working with over 50 local brands and will be seeking to expand.
Conor McGarry, Business Development Manager at Franchise Direct, says: “The new office will play a key role in our expansion plans for India, strengthening our presence there and increasing our market share in the region. This is part of a strategic development plan that will allow us to further improve the scope and quality of our services to our rapidly growing network of customers and partners.”
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.