Franchise Ownership Trends & Ten Largest Operators – Executive Summary
- The corporate store ownership mix has increased over the last 4 years and is currently at an 8-year high, driven by a decrease in refranchising coupled with an increase in corporate development.
- The 2022 franchise transfer rate normalized after a 2021 spike which was driven by the consolidation of operators weakened by the covid turmoil.
- While the development rate continues to recover from its 2020 low, it remains significantly lower than the 2014 high, reflecting operator reluctance to commit capital in the current high-cost environment (with both borrowing rates & construction costs at or near all-time highs).
- The average number of units operated by franchisees of the $1B+ Chains has increased from 5.4 in 2018 to 6.1 in 2022. Smaller operators (particularly in the sub-sandwich segment) are ripe for further consolidation.
- Report provides a listing of the 10 largest franchisee operators and the total number of unique franchisees/entities for 46 chains.