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QSRs and Beauty Concepts Dominate the Market

The franchising industry in the U.S. is experiencing a significant shift towards multi-unit franchisee ownership, with approximately 42,891 multi-unit operators managing a total of 241,380 units. This represents 56% of all franchised units and reflects a 1.1% annual growth rate in multi-unit ownership. This trend is not limited to a specific sector, as both food and nonfood industries are seeing an increase in multi-unit ownership. QSRs lead the way in terms of the percentage of multi-unit operators and controlled units, followed by beauty-related concepts. Additionally, the rise of multi-brand operators, who now make up 13.8% of all MUOs, is noteworthy. These franchisees are diversifying their portfolios across different categories and sectors, showcasing a more sophisticated approach to franchising. This trend highlights the growing influence and importance of multi-unit franchisee ownership in the industry.

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