If you are interested in some facts about some of the most well known franchises out there, you have come to the right place. Understanding how a franchise works is really simple! The owner of the original company who is formally known as the franchisor allows a third party the right to open a company using the franchisor’s company name for an agreed amount of time. An on going fee to use the name and operate then follows this. In some cases, the fees surrounding setting up a franchise can be covered by the franchisee or can even be covered by an on going payment plan which pays off the initial set up costs. To put it simply, a franchise is an alternative to building chain stores and avoids the investments and liabilities usually involved in these. The franchisors success depends on the success of the franchisees.
Owning a franchise is a great idea if you are thinking of opening your own company. By owning a franchise, you take an already successful brand name into your own hands, meaning they will already come with a loyal following of customers. Opening a franchise offers the opportunity to have a successful business of your own with the help and guidance from experienced business owners.
Some of the world’s most famous brands such as thriving fast food chains like McDonalds and burger king are franchises. They reach an incredibly large customer base due to their companies operating in many different areas and countries. McDonald’s is, in fact, one of the world’s largest fast food chains. As you can see from the infographic, McDonald’s has 375,000 employees, 36,853 units and a whopping $24,6000,000,000 in revenue.
However, although one of the largest franchises, McDonald’s has no where near as many employees as KFC. KFC accommodates to 455,000 employees over 19,995 units. KFC is very similar to McDonalds in terms of the countries it operates in and the revenue it receives.
Franchises are not limited solely to just fast food chains, in fact, some other large companies are also franchises. Kumon, which is an education based tutor program, is a franchise. Of course, it seems small compared to the fast food chains, but it operates in 50 countries and has employed 22,600 workers. With 24,700 units, Kumon has received a total of $11,628,000,000 in revenue.
It is common for hotels to be a franchise, and an excellent example is Hilton hotels. Hilton hotels and resorts operate in 78 countries, so it is likely that you will get the privilege of staying in a Hilton room at some point in your life. With 4,925 units and 169,000 employees, Hilton generates a revenue of $11,663,000,000.
Franchising a company can allow it to become a national or even a worldwide brand. This is what makes
franchises so desirable as they reach a large customer base and their ability to become global enterprises. For more information on the analytics involved in the worlds biggest franchises, be sure to take a look at this extremely informative infographic.