2022 Top 100 Franchises Report

Since 2009, Franchise Direct has published its Top 100 Global Franchises Ranking, a snapshot of how a number of the most successful franchises in the world fared in the past year compared to the year before.

Through the ranking, we strive to present information on the franchises website visitors often want to see along with introducing some up-and-coming brands they should get to know. It’s one of the most well-known franchise rankings, having frequently been cited by industry professionals over the years.

The ranking is based on multiple data points. Main data points include longevity, annual sales revenue, system size, and growth over the past year. More on the methodology can be found here. Please note that the ranking is not exhaustive. It is also not meant to be taken as an endorsement of any of the franchise brands mentioned therein.

This is the accompanying Top 100 Report. It’s full of tidbits on selected franchises to catch you up on things you might have missed throughout the previous year in franchising.

NOTE: For more, please also see:

The 2022 Non-Food Top 100

2022 Top 100 Under 100 Units

100 Top Franchises of the 2000s (for 2022)

Navigating the Meantime

2021 was a strange year. In some ways, it might have been harder to navigate than 2020.

It was a 12-month period that wasn’t in the throes of the pandemic like 2020, but not quite post-pandemic. And with rules and regulations varying from place-to-place—and not just country-to-country or state-to-state, but sometimes within a single state itself—there were a lot of factors for franchisors to juggle.

Basically, if 2020 was about making it work despite the circumstances, the theme of 2021 may have been growth in the face of the unknown.

The 2022 Top 100 contains a set of franchises that were able to maximize their potential during hard times. They represent a percentage of the thousands of franchises that found a way to not simply maintain, but grow as well under adverse circumstances.

Headliners: The Top Three

Because most of the franchises in the ranking are from or based in the United States it’s easy to overlook that this is a global list. However, as we’ve found out over the last two years especially, the world is interconnected in ways we sometimes forget in our day-to-day lives.

Why bring this up? It’s that globalism, the impact from other parts of the world, that has led to a rare shake up at the very top of our U.S. ranking.

For years, KFC’s international operation has been more prominent than its domestic expansion. Consider this: In second quarter 2021 alone, the chicken-based food franchise opened 428 net new units, many of which in other countries.

It’s the impact of that global success that has allowed KFC to rise to No. 1 for this year, just edging out the rest of the competition.

To further illustrate how KFC did it, look at the brand’s performance when compared to its other Yum! Brands siblings, Pizza Hut and Taco Bell, for the most recent quarter that has been publicized as of publish date (Q3 2021). KFC outpaces both in total system sales, system sales growth, same-store sales growth, and net new unit growth versus the same time period in 2020.

(Source: Yum! Brands)

Also using its global success to ascend up the ranking to No. 2 is 7-Eleven. The convenience store chain has long been the largest franchise in the world by number of units. It now has more than 77,000 locations, nearly twice as many as the closest franchise to it in unit size (now McDonald’s, formerly Subway).

Part of the company’s growth plan is a continuation of its desire to become more of a fast food destination—and it’s made major investments to that effect. “Today’s opportunity is in the QSR space, and we are responding by aggressively rolling out our restaurants across the country,” says chief operating officer Chris Tanco.

The moves appear to be working. It’s not just footprint in which 7-Eleven is putting pressure on traditional fast food franchises. 7-Eleven is moving closer to the top in terms of overall sales as well.

According to Franchise Times, this past year was the closest 7-Eleven has ever been to McDonald’s in sales. However, the pressure isn’t too intense. The sales gap between the two franchises is still an estimated $1.5 billion. However, the figures for 7-Eleven may not reflect the full impact of the company’s May 2021 acquisition of about 3,800 Speedway convenience stores.

Speaking of McDonald’s, the burger franchise didn’t have a bad 2021 at all. The fast food franchise’s third place ranking this year is simply a reflection of the fact that it maintained more than it grew in 2021, especially when compared to the two brands that precede it.

The Rest of the Top 10

Back after a down year is hotel franchisor Marriott International (No. 4). (More on it and the hotel industry in general below.)

With limited exceptions, fast food dominated again this year. Completing the top five is Burger King, whose parent company Restaurant Brands International brought Firehouse Subs under the umbrella in 2021 to join Burger King, Tim Hortons and Popeyes.

Next up are food franchises Pizza Hut (No. 6) and Taco Bell (No. 7), which join its No.1 ranked sibling brand in the Top 10. Being able to draw from a global pool of resources is bolstering the economic outlook for these two brands, just like KFC.

According to Zacks Equity Research, “Strong digital sales, record unit development, robust same-store sales, and [YUM Brands’] ability to adjust operations, menu options and marketing worldwide helped it counter the challenging scenario” of factors present at the current time. In addition, the research company also sees the conglomerate continuing “to benefit from robust sales momentum in North America, the U.K., and Australia, and improved performance in Europe.”

Domino’s again places in the top ten. This year, in eighth. Among the highlights for the pizza franchise this past year was celebrating the opening of its 18,000th store.

Ace Hardware continues its strong year-to-year showings in ninth, and rounding out the top ten is another home-related brand with a strong showing: Century 21 Real Estate.

Hotels Bounce Back

You didn’t expect for the hotels to flounder for long, right?

After what can only be described as a disaster in 2020, the major hotel franchisors are hopping right back on the development train as travel begins (a slower than desired) bounce back. The glaring exception is Wyndham, which of the hotel groups surveyed for the ranking, is the only one that didn’t return to the Top 100.

As for Marriott International, specifically, it’s focusing on the higher-end with plans to debut 30 luxury hotels in 2022 in locales such as Portugal, Russia, Australia and South Korea. The hotel company, whose luxury franchise portfolio includes brands such as The Ritz-Carlton, Ritz-Carlton Reserve, W, St. Regis, The Luxury Collection, EDITION, JW Marriott and Bulgari, feels the past couple of years has shifted what travelers want – and that its luxury brands can give them what they want.

“As people reexamine and reprioritize what matters to them most, a shift that has accelerated over the past two years, we’re seeing a real embracing of deeper travel,” Chris Gabaldon, the hotelier’s senior vice president of luxury brands, remarked at the International Luxury Travel Market Cannes in December 2021. “Our guests are focusing more on where they travel and why they make the journey, seeking to foster a more meaningful connection to the destination as well as the people they meet.”

On a more macro level, though, the pandemic may have changed the foundation of what hotels are or can be.

According to Skift, hotels can’t use a standardized version of design anymore. With local guests the main audience—for at least the near future—hotels are having to reimagine how their property or properties look and feel.

Or, as Tom Ito, principal at architecture, design, planning and consulting firm Gensler, says “Because of the pandemic, hotels are more than a place to sleep. […] Localization is important to design. People want to be taken care of, but they’re yearning to experience something new. We do that when we go to a new country. It doesn’t have to hit you in the face, but you have to feel it. That’s the key to it: how do you embrace the local community and bring it into the hotel. Hotels shouldn’t look the same, from one city to another.”

Subway Turns a Corner

While it didn’t quite make it back to the top ten, Subway (No. 11) is bouncing back following persistent criticisms and some lean years for the company.

How is Subway doing it? A revamped menu, a new “Fresh Forward” design concept for its stores, and an accompanying media blitz. The strategy has worked to the tune of the company’s highest monthly sales since 2013. There are also signs the brand is heading back into an expansion mode, following a few years of contraction. Late last year, it completed a deal to open more than 2,000 stores across South Asia as well as announced a major expansion deal in the Middle East.

In fact, when final full year numbers are tabulated, some analysts expect the sandwich franchise to have ended 2021 with around $1 billion in sales over initial predictions.

Pet Franchises and the Pandemic

Pet franchises made a noticeably strong showing this year. Led by perennial Top 100 franchise Husse (No. 53), there are four pet franchises in this year’s Top 100—two of which (Hounds Town USA – No. 80 and Dog Training Elite – No. 89) are first-timers.

Why is pet franchising so big right now? Yes, the adoption of “pandemic puppies,” as Hounds Town USA CEO Jackie Bondanza says, has a great deal to do with it—but not all.

“Sure the [adoptions during the] pandemic helped, but pet care is notoriously recession-resilient,” Bondanza told us. However, she noted the increase in demand for the pet services industry—and franchises like Hounds Town USA, specifically—may be related to a behavior shift in pet owners that was already occurring pre-pandemic.

“Day care is the heart of our business,” she said. “We’re a very work-oriented society, and what the pandemic drove home to a lot of pet owners, even the ones who continue to work from home, is that their pets need more exercise and socialization than they can give.”

It’s that widespread realization among pet, especially dog, owners that appears set to drive even more growth in the industry. Off of a “record-breaking” 2021, Hounds Town USA is set for 35-40 openings in 2022 with the hopes of closing on 40-50 new franchise agreements within the year. A goal which Bondanza says is well within reach given trends and the “simplicity of our business model.”

Numerous Newcomers

In addition to the pet franchise newbies mentioned in the previous section, a significant number of other franchises representing various industries are making their debut in the ranking this year as well. Here’s some more about them.

With a business model that hits on a combination of two headline-dominating subjects this year, it’s no surprise employment/staffing franchise ATC Healthcare (No. 32) found its way into the ranking this year.

Brightway Insurance (No. 43) jumps into the main Top 100 after being oh-so-close last year. The quickly-expanding Jacksonville, Florida-based franchise is one of the largest personal lines insurance agencies in the U.S. At the end of 2021, the insurance distribution company partnered with GrowthCurve in order to continue its national expansion strategy and “invest in its technology platform to further enhance its strong value proposition to customers, franchisees and carrier partners.”

1-800 WATER DAMAGE (No. 51), Footprints Floors (No. 72), Mr. Electric (No. 89), Fantastic Services (No. 91), Aire Serv (No. 93), and Ace Handyman Services (No. 98) take advantage of a pandemic-driven bump to home services franchises to make the Top 100.

For 1-800 WATER DAMAGE, system-wide sales were up 40% year-to-year. As for Footprints Floors, it also experienced dramatic revenue growth exceeding its 2020 revenue by over 58% within the first three quarters of 2021.

No stranger to the ranking, Neighborly, which franchises well over 20 home services brands, sees Mr. Electric and Aire Serv, make their ranking debut this year.

UK-based Fantastic Services is going big with its growth efforts. It has a goal of expanding into 40 countries in the next five years.

The former Handyman Matters, Ace Handyman Services not only is benefitting from a rise in home projects, but its association with Ace Hardware, which it was acquired by in September 2019.

An ever-increasing dependency on technology is likely behind uBreakiFix by Asurion (No. 83) and Wireless Zone (No. 91) entering the Top 100 for the first time this year.

In fact, the demand for the services of uBreakiFix is leading to a rebrand. The brand is in the midst of a changeover to the name “Asurion Tech Repair & Solutions,” which began in September 2021. “Our retail footprint has grown substantially in the two years since Asurion acquired uBreakiFix, and we are confident this shift will allow us to reach even more people with much-needed tech repair services and solutions,” said uBreakiFix CEO Dave Barbuto.

As for Wireless Zone, the company formerly known as The Car Phone Store undoubtedly benefits from its status as a Verizon Authorized Retailer. As of Q2 2021, Verizon stands as the largest wireless carrier in the United States by subscriber count.

Though it’s technically a retail franchise, you could argue that Wild Birds Unlimited (No. 84) has been helped by the same factors the pet franchises have been over the past couple of years. But more specifically, the rise in “birding,” spurred by the hard lockdowns of the early pandemic, has persisted helping businesses that sell bird seed and backyard bird feeders find a new generation of customers.

Fast-casual salad brand Saladworks (No. 92) makes the Top 100 for parent company WOWorks, which became one of the first franchisors to adopt the Pathways to Black Franchise Ownership program. Launched by Multicultural Foodservice & Hospitality Alliance (MFHA), the program has a goal of creating 100 new Black-owned franchise restaurants by year-end 2023.

Similar to the home services newbies, an increase in demand for in-home senior care helped boost Always Best Care (No. 99) into the ranking for 2022. In addition to growing its presence in existing areas such Texas, North Carolina, California and Georgia, the senior care franchise debuted in new locales like its first-ever location in Hawaii within the past year.

A Run of Fitness IPOs

Fitness franchises have had a very interesting two-year stretch.

We spotlighted the resilience of Orangetheory Fitness last year, but there are other fitness franchises that are defying the odds in a big way too.

One of the fastest-growing franchises over the past few years has been F45 Training (No. 52). F45 gets its name from its “45-minute workouts that combine elements of high-intensity interval, circuit and functional training through a digitally connected global network of studios.”

The Australian-founded fitness franchise has grown to well over 1,550 locations in its first eight years.

Prospects have been so good that F45 closed its initial public offering this past July to net proceeds of approximately $279 million.

Looking to the future, the fitness franchise is seeking opportunities by partnering with universities, hospitality operators, corporations and military facilities, per the release for its public offering. It’s an avenue the franchise has already dabbled in. In 2016, the company first opened a studio on the campus of the University of Southern California. It now has around 30 studios on U.S. college campuses.

Relatedly, while it didn’t make the Top 100 this year, fellow fitness franchise Planet Fitness also filed an initial public offering in 2021.

Additional Notes

• Ziebart’s (No. 29) executives are attributing its impressive system-wide performance in 2021 to a variety of factors, including the automotive chip shortage. The auto franchise experienced a year-over-year increase of 40% in retail leads. Prospective franchisees also took note of what the company had to offer as the number of franchise development inquiries it received “more than doubled during the second half of 2021,” according to the company.
• Last year, we explored the importance of the drive-thru to food franchises in weathering pandemic restrictions. Scooter’s Coffee (No. 33) is taking it one step further. The coffee franchise hired a “Senior Director of Drive-Thru Innovation” to maximize earning potential. Nathan Lester, former leader of strategic initiatives at McDonald’s, “will lead innovation, speed acceleration and continuous improvement to enhance the interactive customer experience.”
• McAlister’s Deli (No. 66) has plans to become a billion-dollar brand by 2024. The fast casual restaurant, which reached the milestone of 500 open locations this past October, expects to have 650 and 700 open locations within the next couple of years.

Just Outside the Top 100

We say this every year, but: The Top 100 needs more than 100 slots!

There are literally thousands of noteworthy franchise concepts out there. So, inevitably, in ranking only 100, there are going to be great concepts that don't make the cut.

Here are some more fantastic franchises that we want to recognize for continuing to make their mark in an incredibly diverse and ever-growing industry.