Franchising Around the World: Key Markets, Big Numbers
Sep 09, 2025
I will be traveling to Brazil next week to attend SomosMulti, an event dedicated to Franchisees and Multi-Unit Franchisees in that country. Not only am I going there to give a masterclass on how to scale a multi-unit business, but I’m also planning to walk the exhibition floor, network with local franchisees and franchisors, and explore everything that the Brazilian franchising industry has to offer.
To prepare for this trip, I researched the current state of franchising in Brazil and compared it to the US franchise market. I didn’t stop there; I also researched other key franchise markets around the world. This gave me a broader view of what global franchising looks like, and, in this blog post, I want to share some of my findings. Let’s dive in!
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US Franchising: The Benchmark
Franchising is one of the most powerful business models in the world. It provides first-job opportunities and creates numerous direct & indirect jobs. It offers people the chance to be in a business for themselves, but not by themselves, to build wealth. It drives innovation and development. Plus, franchises have a significant impact on our modern economies and local communities, as we will see throughout this blog post.
The United States is proof of that. In fact, it is one of the largest and most mature franchise markets, and for many countries, the country serves as the benchmark of what franchising can achieve.
According to the “2025 Franchising Economic Outlook” published by the International Franchise Association (IFA), it is expected that by the end of 2025, there will be 851,000 franchise units in the country.
- One-third of business owners say they wouldn’t own their business without franchising.
In terms of employment, around 8.8 million jobs in the US are franchise-related.
The IFA report also forecasts that franchising output will surpass $936.4 billion in 2025, a 4.4% increase over 2024.
The US franchising industry is seeing an increase in franchise concepts of Personal services, Retail food, products, and services, as well as in Commercial & Residential services and Quick-Service Restaurants (QSR).
Sources: International Franchise Association, “2025 Franchising Economic Outlook” and “The Value of Franchising” reports.
Keep learning: Franchise Opportunities in the US. World Franchise Day Deep Dive
Brazil: A Rising Power
Brazil is the largest franchise market in Latin America, with a dynamic and growing industry that has about 3,300 brands, almost 200,000 units, and generates more than 1.7 million jobs.
In 2023, the sector reached R$240.6 billion in revenue and is still expanding. Food service, Health & Beauty, and Hospitality are leading the way.
According to the Brazilian Franchise Association (ABF), 163 Brazilian brands operate in 106 countries worldwide, with the US as the leading destination. Fashion is the most representative segment, with 36 brands; followed by Health, Beauty & Wellness, with 34; and Food with 27.
On the other hand, 95% of the franchises are local, so foreign franchises with clear differentiating factors and unique technology have potential in the country.
I am excited to experience Brazil’s entrepreneurial energy first-hand, as SomosMulti (https://somosmulti.com.br/) is the largest Franchisee and Multi-Unit Franchisee event in the country!
Sources: Brazilian Franchise Association (ABF), SomosMulti, Franchising.com
China: Fast Growth
The franchise business model operates with certain differences to comply with the country’s franchise regulations. While there isn’t an exact number of franchise units, according to a 2023 Lexology report, the top 100 franchise systems in China operated more than 299,000 franchise units at the end of 2020. And ResearchGate reports that China is the largest franchise market in the world, with over 4,500 franchise systems and over 400,000 units in over 70 industries.
The China Chain Store and Franchise Association has more than one thousand members, including domestic and foreign franchisors, retailers, and suppliers. Food, Beverage, and Convenience stores dominate the franchising scene.
China is the hometown of the biggest fast-food chain in the world, Mixue Ice Cream & Tea, accounting for more than 46,000 units in Asia, Australia, the Middle East, and South America. 99% of those stores are franchises. And approximately 87% of them are located in China.
Sources: Lexology, China Daily, Fortune, ResearchGate
Japan: Stable and Strong
According to the FMS Asia website, Japan was the first Asian country to embrace franchising as a business model back in 1963. In 2022, the Japanese franchise industry had 1,308 franchise chains, more than 254,000 units, and combined sales of approximately ¥26.99 trillion (around $189 billion).
Convenience stores are one of the most profitable franchise sectors in Japan. So much so that the International Trade Administration states that this country has more 7-Eleven locations than anywhere else in the world, with nearly 30% of global stores. Cleaning & Home services, and Fast-food chains & Restaurants also top the list.
The organization also warns that while it is relatively easy for foreign players to enter, the market is very competitive, especially for restaurant franchises. Big fast-food chains, such as Burger King and Wendy’s, had to leave Japan several times to update their business strategies to re-enter the country and win the market.
Sources: FMS Asia, Lexology, International Trade Administration
Don’t miss: Unlocking Global Talent to Power Up Your Franchise
Germany: Regional Strength
To some European experts, Germany is Europe’s most developed franchise market. The data agrees with them: the German Franchise Association reports that in 2024, there were 910 active franchisors in the country, more than 190,000 franchise units, and over 148,577 franchisees.
With total revenue of €149.2 billion, the franchise industry recorded a 1.1% increase in revenue that year compared to 2023. In fact, since 2012, the German franchise industry revenue has increased by 42%, corresponding to an average annual growth rate of 4.6%.
Around 829,700 people are employed in German franchise systems, and each new franchise creates an average of 5.6 additional jobs.
Sources: German Franchise Association
Keep learning: Looking Back & Forward. Franchise Evolution and Future
Mexico: Expanding Opportunities
With more than 1,300 franchise brands and about 95,000 locations, and generating over 1 million jobs, Mexico is the second-largest franchise market in Latin America.
Mexico’s franchise industry represents close to 5% of the country’s GDP, according to the Mexican Franchise Association (AMF).
Most of the franchise establishments in the country are owned by Single-Unit Franchisees, with a growing participation of women entrepreneurs. There is also a high demand for low-investment models, especially in food and childcare.
Sources: Mexican Franchise Association
Don’t miss: Key Learnings From The International Franchise Fair, Mexico City
Franchising Around the World, Comparative Snapshot
What We Can Learn
After looking at these global franchise markets side by side, a few takeaways stand out:
- Food service continues to be the backbone of franchising globally.
- Personal services and Wellness are strong emerging categories. Along with Food & Beverage, these sectors consistently show resilience and growth across markets.
- Multi-unit ownership is on the rise, but to be truly successful and find financial and time freedom, franchisees require solid leadership & business training not only for themselves, but also for their leaders.
- Financing, labor, and regulatory issues are shared challenges across regions.
- Franchisors planning to expand globally should consider the regulatory differences and industry entry barriers in each country.
- Franchisees looking to introduce international brands in their countries should consider that some products or offers might need to be adapted (tropicalized) to attract local consumers.
Franchising is thriving around the world. Each country adds its own flavor, but the shared promise is clear: franchising creates opportunities, jobs, and economic growth.
As I head to Brazil, I’m reminded of how connected our global industry is and how much we can learn from one another.
Don’t forget to follow us on our social media, where I’ll keep you posted on the SomosMulti event and more upcoming franchise conferences.
