Franchising, retail, business
20/10/2014
US-based publication, Franchise Times has released its annual top 200 franchises list, which measures the performance of franchised companies based on their total worldwide system sales.
While one of the key eligibility criteria outlines a franchise must have a sizeable presence in the US to be considered for the list, Franchise Times recognised international growth as a key factor driving company success.
Research revealed the average franchise system operates 36.3 percent of its locations outside of the US, an increase from 34.4 percent in 2012.
In many cases international growth counteracted companies' decreasing outlet numbers in the US.
The number of international locations operated or franchised by companies on the list increased by 10.3 percent, meanwhile locally the figure was 1.3 percent.
Additionally, the largest franchise systems added four locations in a foreign market for every unit they added stateside in 2013.
“The international growth helped companies on the Top 200 to what we’d call an average year in 2013," a press release on the Franchise Times website states.
“The added units outside the U.S. offset a lacklustre domestic economy. Many of the companies at the top of the ranking struggled to grow sales stateside, so the international units picked up the slack."
In 2013 chicken chain KFC opened 800 restaurant overseas, however in the US its presence dropped by 127 units. Likewise, Burger King’s outlet numbers decreased by 28 in the US, meanwhile it opened 700 international locations over the same period.
Franchise Times attributes this international growth in part to the increase in private equity ownership of franchised brands – 71 of the companies on the latest list are owned by private equity.
There is a belief that the private equity groups are eager for growth, and so they put pressure on companies to increase their number of units.
In 2013 companies on the list reported $590 billion in sales, a four percent increase on the 2012 figure of $567 billion.
The top ranked companies include:
1. McDonald’s
Global sales ($M): $89,126
Total units: 35, 429
Franchised: 81%
2. 7-Eleven
Global sales ($M): $84,475
Total units: 53, 856
Franchised: 77%
3. KFC
Global sales ($M): $23, 250
Total units: 18,875
Franchised: 73%
4. Subway
Global sales ($M): 23, 250
Total units: 42, 296
Franchised: 100%
5. Burger King
Global sales ($M): 16, 301
Total units: 13, 667
Franchised: 100%
6. Hertz
7. Ace Hardware
8. Circle K
9. Pizza Hut
10. Wendy’s
11. Marriott Hotels & Resorts
12. RE/MAX
13. Taco Bell
14. Domino's
15. Hilton Hotels & Resorts
Fonte:http://www.franchise.net.au/news/the-world-s-top-200-franchises-revealed