Franchise Fun Facts
Franchising has had a compelling history from its commencement and up until today. Here are some fun facts about Franchising that you may have or have not known.
Shaquille O’Neal is a Franchise Mogul
Did you know that Shaquille O’Neal is a franchise mogul who owns 155 Five Guys Burgers and Fries restaurants, 40 24-Hour Fitness Clubs, 17 Auntie Anne’s Pretzels and a variety of other businesses between New York and Michigan?
Singer Sewing Machines; The first American Franchise
In the mid-1800’s the first American Franchise was established by Albert Singer and his Singer sewing machine. Singer is highly regarded for his licensing arrangements. Singer set up specific geographical locations for business owners and charged an upfront licensing fee for the right to sell his sewing machines.
The first McDonald’s opened in Des Plaines, Illinois in 1955
Ray Kroc, a milkshake mixer salesman, ventured to California in 1954 to visit McDonald’s hamburger stand, where he heard they were running eight mixers at once. Kroc was impressed by how rapidly customers were served and, seeing an opportunity to sell many more milkshake machines, encouraged brothers Dick and Mac McDonald to open a chain of their restaurants. Kroc became their business partner and opened the first McDonald’s in Des Plaines, Illinois in 1955. McDonald’s and the Golden Arches have since become an internationally-recognized symbol of quick-service hamburgers, fries, chicken, breakfast items, salads, and milkshakes.
There are currently 750,000 franchises in the United States
Peyton Manning Owns 21 Papa Johns franchises
Retired football star Peyton Manning not only stars in Papa John’s Pizza commercials but also owns 21 Papa John’s franchise location in Colorado.
The first franchise dates back to 200 B.C.
The first franchise ever documented was started by a Chinese man named Lo Kass back in 200 B.C. Lo Kass operated several retail units in China.
Dunkin’ Donuts serves more than 300 Million customers each and every day.
The first Gold’s Gym opened in 1965 and was sold to an owner with a different last name in 1971.
Joe Gold opened the first Gold’s Gym in August 1965, in Venice Beach, California, long before the modern-day health club existed. It was offered to a gym member, Ken Sprague, who purchased it in late 1971, who saved the gym and continues to own the franchise today.
Magic Johnson is a Franchise Mogul
The NBA Hall of Famer, Magic Johnson owns 30 Burger King restaurants and over a dozen 24-Hour Fitness Clubs. He also once owned 105 Starbucks that he sold in 2010 for an undisclosed amount in 2010.
McDonald’s and Subway are the 2 largest franchise chains with nearly 100,000 locations worldwide.
Phil Mickelson owns exclusive franchise rights
Professional Golfer, Phil Mickelson owns the rights to the Orange County, California Five Guys Burgers and Fries chain.
In Canada, the recent legislation mandates better disclosure and treatment of franchisees.
The regulations also ensure their right to form associations and launch collective action, even if they signed contracts prohibiting such moves. Franchising in Canada involves 1,300 brands, 80,000 franchise units accounting for about 20% of all consumer spending.
China has the most franchises in the world but the scale of their operations is relatively small.
Europe’s franchise industry is largely unregulated.
Franchising has grown rapidly in Europe in recent years, but the industry is largely unregulated. Unlike the United States, the European Union has not adopted a uniform franchise law.
Hampton Inns is the largest and most successful hotel suites franchise.