Franchise Direct is a resource website that publishes an annual list of Top 100 Global Franchises. Like other ranking platforms, Franchise Direct relies on its own methodology in deciding which franchises make the list and in what order, and Franchise Direct bases its rankings on factors including:
- System size
- System revenue
- System age
- Stability and growth
- Market expansion
- Adherence to franchisee support and training best practices
- Environmental policy
- Social responsibility
According to Franchise Direct, its analysis of these factors is intended, “to offer an objective look at some of the world’s top franchise operations.”
What Can 10 Years of Rankings Tell Us about the Franchise Industry?
Since we’re at the end of the decade (at least by some people’s calculation), Franchise Direct took the opportunity to look back at its Top 100 Global Franchises lists from the past 10 years. Here are some of the trends they identified:
- 180 franchises broke into the top 100. Over the past 10 years, 180 different franchise systems have been ranked among the top 100 by Franchise Direct. This suggests a large amount of stability among the top echelons, but also clearly indicates that many franchises rise and fall (and come and go) over time. Franchise Direct also reports that, “37 franchises went 10 for 10, making our Top 100 ranking every year of the past decade.”
- Nearly 40 percent of the top 100 were food franchises. According to Franchise Direct, 38 percent of all franchises ranked in the top 100 over the past 10 years have been, “part of the food franchise industry or a food-related industry segment.”
- Cleaning and home services accounted for 20 percent of the top 100. Franchise Direct also reports that the industries that claimed the next-highest percentages of the top-100 rankings were cleaning and home services, with 10 percent each. Given the recent explosion in the health and fitness sectors, it would be interesting to see whether these figures are largely supported by higher rankings in the earlier part of the decade.
- The majority of the top franchises are based in the United States. The substantial majority of the franchise systems making Franchise Direct’s top-100 lists over the past decade have been U.S.-based systems. Much smaller numbers of systems from Australia, Canada, England, France, Germany, Japan, South Korea, Spain, Sweden and the Philippines have also made the list.
- New franchised brands are emerging. While many brands have made the top 100 consistently over the past 10 years, the data also indicate that some more-recent trends are emerging. For example, Franchise Direct notes that, “Sport Clips entered the Top 100 ranking in 2015 and has been there ever since . . . [and] other franchises, such as Orangetheory Fitness and F45 Training, that are a decade old or less . . . [have] already made their presence known worldwide.”
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