The figures cover the 3,352 brands selling franchises in the US, from the filings every franchisor gives a buyer before a sale. A typical figure is the median across the brands that report it, so one giant chain doesn’t move it the way it moves an average.
How big franchise brands are
The typical brand has 21 US locations, and 65% have fewer than 50. Only 94 have 1,000 or more. Franchisees own 86% of all locations (451,876); franchisors run the other 72,279 themselves.
How fast franchises grow
Of the 1,858 brands with location counts for 2023 through 2025, 1,248 (67%) grew, 414 (22%) shrank and 196 ended where they started. Among brands with at least 50 locations, the typical one grew +3.8% over the three years. Between them the brands went from 354,964 to 383,992 locations. The fastest-growing franchises ranking lists the brands.
How often franchise locations close
Across the 1,133 brands that report three years of openings and closures, 4.4% of franchised locations left their system each year, counting every location together; the typical brand lost 3.0%. Of the 34,320 exits, 54% were locations that stopped trading, 36% were agreements the franchisor ended and 10% weren’t renewed. A further 4,792 locations were bought back by the franchisor and kept trading.
At the extremes, 340 brands lost no franchised location in three years and 285 lost 8% or more a year. The failure rates guide breaks these down by brand, industry and size, and ranks the brands that lose the fewest.
What franchises cost to open
The typical franchise costs $222K at the low end of its estimate and $477K at the high end. Of the 3,352 brands, 756 (23%) can open for $100K or less, 1,821 (54%) for $250K or less, and 310 start above $1M. The cost guide shows the full range by industry.
Fees and royalties
The typical franchise fee is $40K. Of the brands, 2,745 charge a royalty as a set share of sales, typically 6%; the other 607 charge a flat, tiered or other royalty. Where a brand sets its marketing fund fee as a share of sales (1,623 brands), it is typically 2%. The fees and royalties guide compares industries.
How many brands publish earnings figures
Franchisors don’t have to say what their locations sell or earn. Of the 3,352 brands, 2,147 (64%) publish some sales or earnings figures, and 838 give a comparable yearly sales figure per location. Among those, the typical location sells $797K a year, about 1.6 times the midpoint of what it cost to open. See the most profitable franchises for the brands.
Franchisors themselves
Every filing includes the franchisor’s own financial statements. Of the 918 franchisor companies with statements, the typical one took in $2.66M in its latest year with a net margin of 10.3%, and 280 (31%) lost money. The largest franchisors ranking lists them by revenue and profit.
Training, contracts and lawsuits
Initial training typically runs 71 hours (2,199 brands) and agreements typically last 10 years (942 brands). Of 3,314 brands, 1,288 (39%) disclose at least one lawsuit, and 1,430 (43%) are on the SBA Franchise Directory, which SBA-backed loans require. See training, agreement terms and lawsuits.
Franchise statistics by industry
Industries with 25 or more brands, largest first. Growth is the typical three-year change for brands with 50 or more locations.
| Industry | Brands | Cost to open | Royalty | Growth | Exits a year | Share earnings |
|---|---|---|---|---|---|---|
| Fast food309 brands, from $353K, royalty 6%, 61% share earnings | 309 | $353K | 6% | +0.8% | 2.2% | 61% |
| Education221 brands, from $120K, royalty 7%, 67% share earnings | 221 | $120K | 7% | +8.9% | 2.6% | 67% |
| Health and wellness199 brands, from $224K, royalty 6%, 63% share earnings | 199 | $224K | 6% | −3.1% | 1.7% | 63% |
| Fitness195 brands, from $297K, royalty 7%, 65% share earnings | 195 | $297K | 7% | −1.4% | 0.9% | 65% |
| Entertainment168 brands, from $286K, royalty 6%, 67% share earnings | 168 | $286K | 6% | +23% | none | 67% |
| Mobile139 brands, from $96K, royalty 7%, 65% share earnings | 139 | $96K | 7% | +8.5% | 2.7% | 65% |
| Cleaning125 brands, from $97K, royalty 7%, 70% share earnings | 125 | $97K | 7% | +3.4% | 4.7% | 70% |
| Pizza122 brands, from $349K, royalty 5%, 52% share earnings | 122 | $349K | 5% | −3% | 2.9% | 52% |
| Spa121 brands, from $334K, royalty 6%, 70% share earnings | 121 | $334K | 6% | +11% | 0.8% | 70% |
| Sports120 brands, from $227K, royalty 7%, 64% share earnings | 120 | $227K | 7% | +25% | 1.1% | 64% |
| Coffee117 brands, from $350K, royalty 6%, 59% share earnings | 117 | $350K | 6% | +16% | 0.4% | 59% |
| Hotel116 brands, from $9.44M, royalty 5%, 61% share earnings | 116 | $9.44M | 5% | +3.8% | 1.1% | 61% |
| Chicken113 brands, from $407K, royalty 5%, 54% share earnings | 113 | $407K | 5% | +6.1% | 1.1% | 54% |
| Bakery112 brands, from $341K, royalty 6%, 66% share earnings | 112 | $341K | 6% | +9.1% | 1.5% | 66% |
| Ice cream101 brands, from $285K, royalty 6%, 75% share earnings | 101 | $285K | 6% | +4.3% | 1.9% | 75% |
| Salon101 brands, from $303K, royalty 6%, 74% share earnings | 101 | $303K | 6% | +11% | 1.4% | 74% |
| Real estate95 brands, from $69K, royalty 6%, 42% share earnings | 95 | $69K | 6% | −4.3% | 8.6% | 42% |
| Gym92 brands, from $342K, royalty 6.5%, 58% share earnings | 92 | $342K | 6.5% | −10% | 2.5% | 58% |
| Pet88 brands, from $198K, royalty 6.5%, 81% share earnings | 88 | $198K | 6.5% | +16% | 1.5% | 81% |
| Sandwich80 brands, from $321K, royalty 6%, 63% share earnings | 80 | $321K | 6% | +0% | 2.4% | 63% |
| Home care and senior care73 brands, from $100K, royalty 5%, 84% share earnings | 73 | $100K | 5% | +23% | 3.2% | 84% |
| Burger63 brands, from $556K, royalty 5%, 70% share earnings | 63 | $556K | 5% | −2.3% | 1.3% | 70% |
| Smoothie60 brands, from $227K, royalty 6%, 75% share earnings | 60 | $227K | 6% | +7.5% | 2.2% | 75% |
| Breakfast58 brands, from $640K, royalty 5%, 79% share earnings | 58 | $640K | 5% | +1.7% | 0.6% | 79% |
| Restoration57 brands, from $152K, royalty 7%, 77% share earnings | 57 | $152K | 7% | +3.9% | 4.8% | 77% |
| Bubble tea56 brands, from $264K, royalty 5%, 34% share earnings | 56 | $264K | 5% | – | none | 34% |
| Mexican food55 brands, from $457K, royalty 5%, 69% share earnings | 55 | $457K | 5% | −11% | 2.7% | 69% |
| Auto repair53 brands, from $224K, royalty 6%, 62% share earnings | 53 | $224K | 6% | +0% | 4.4% | 62% |
| Commercial cleaning45 brands, from $66K, royalty 7%, 69% share earnings | 45 | $66K | 7% | +4.9% | 5.8% | 69% |
| Daycare40 brands, from $737K, royalty 7%, 73% share earnings | 40 | $737K | 7% | – | 1.0% | 73% |
| Printing and sign34 brands, from $133K, royalty 6.5%, 68% share earnings | 34 | $133K | 6.5% | +0.8% | 3.0% | 68% |
| Tutoring32 brands, from $85K, royalty 9.8%, 47% share earnings | 32 | $85K | 9.8% | −11% | 6.4% | 47% |
| Staffing31 brands, from $85K, royalty 7.5%, 48% share earnings | 31 | $85K | 7.5% | −9.8% | 10.1% | 48% |
| Lawn care30 brands, from $117K, royalty 7%, 87% share earnings | 30 | $117K | 7% | +8.6% | 4.4% | 87% |
| Dog grooming28 brands, from $198K, royalty 6.1%, 79% share earnings | 28 | $198K | 6.1% | – | 0.4% | 79% |
| Pest control25 brands, from $99K, royalty 8%, 72% share earnings | 25 | $99K | 8% | +8.7% | 4.4% | 72% |
Using these figures
Questions
What percentage of franchises fail?
There is no single failure rate. Franchisors report locations that closed, were terminated or weren't renewed, and those exits include owners who retired or let a lease run out as well as businesses that failed. A sale to a new owner isn't counted as an exit at all, so the closure figures here are the nearest measure buyers have.