*Franchise Growth Trends in 2024: Key Insights and Takeaways
In 2024, we conducted an in-depth analysis of 250 franchise disclosure documents (FDD’s), focusing on concepts with 50 or more year-end locations (173 brands). Our study leveraged data from 2021, 2022, and 2023 to compile a comprehensive ranking of the top 100 franchise brands by their 2023 year-end location counts. See the Top 30 below.
Key Findings
Steady but Modest Growth
The top 100 franchise chains posted a modest year-over-year (YOY) increase of just over 1% and a slightly higher 2% growth over the two-year period. Surprisingly, the 10 largest chains experienced a slight decline, collectively losing 445 units.
Smaller Chains Show Stronger Growth
While larger chains faced slower expansion or contraction, smaller franchises demonstrated impressive growth.
- The 25 concepts with the fewest locations at the end of 2021 expanded by 14% over the two-year period.
- The 50 smallest chains increased their footprint by 9.6%.
- In contrast, the 50 largest chains grew by just 1.2%.
Big Gainers vs. Big Decliners
There were more franchises enjoying notable growth than those facing significant declines:
- 12 franchises achieved gains exceeding 20%.
- Conversely, only 5 chains experienced declines greater than 10%.
Standout Performers
Crumbl emerged as the growth leader, achieving a remarkable 200% expansion over two years, crossing the 1,000-location milestone. Although its rapid growth pace is stabilizing, Crumbl’s success underscores the power of innovative, high-demand concepts.
Other fast-growing brands include:
- Scooter’s Coffee
- Biggby Coffee
- Kung Fu Tea (a thriving bubble tea franchise)
Chains Facing Challenges
Huddle House faced a 10.2% decline in unit count. However, its parent company, Ascent Hospitality Management, is actively recruiting new developers, which could stabilize and reverse the trend in 2025.
Four additional chains saw unit declines exceeding 10%, largely due to operational challenges. These brands will need to pivot effectively to regain stability in the coming year.
Key Takeaways for Franchise Investors and Operators
- Top 100 Chains: Demonstrated modest growth, with larger players facing slower expansion or declines.
- Smaller Chains: Showed stronger growth potential, with some achieving double-digit percentage gains.
- Growth Leaders: Brands like Crumbl, Scooter’s Coffee, Biggby, and Kung Fu Tea are expanding rapidly.
- Struggling Chains: Brands like Huddle House are facing challenges, but strategic efforts may lead to a recovery.
Final Thoughts
This data offers crucial insights for franchise investors and operators, highlighting growth trends and areas of concern. As the franchise landscape continues to evolve, adaptability, strong brand appeal, and strategic growth execution will remain critical to long-term success.
*The Franchise Disclosure Documents for 2024, which are released in 2025, are not yet available.
The Top 30 are displayed below. Companies can request the entire Top 100. Please Contact us.
