US companies are franchising market leaders

McDonald’s is rated No 1, while fast food rivals KFC and Burger King take the other top spots

Companies from the US are dominant when it comes to international franchising.

They have taken all the first 10 places in the latest list of the top 100 global franchises published by Franchise Direct.

Many of the leading names are very familiar to British consumers, as they have outlets in many parts of the UK.

The first three spots are held by fast-food giants – McDonald’s is ranked No 1, followed by KFC and then Burger King.

McDonald’s was founded in 1940 and is reported to now be the world’s second-largest private employer, with around 375,000 staff and another 1.5 million people working for franchisees. There are now about 37,000 company-owned and franchised outlets in 120 countries, and revenues last year totalled $24.6billion.

The other US firms which have made the top 10 are: Subway (4th), 7 Eleven (5th), Hertz (6th), Pizza Hut (7th), Marriott International (8th), Wyndham Hotels and Resorts (9th), and Hilton Hotels & Resorts (10th).

Unfortunately British businesses do not fare well in the Franchise Direct list.

The only UK company to make the top 100 – the majority of which are US firms – is InterContinental Hotels and Resorts in 12th.

According to online encyclopedia Wikipedia, the boom in franchising around the world did not take place until after the Second World War.

Nevertheless, the rudiments of modem franchising are said to date back to the Middle Ages when landowners made franchise-like agreements with tax collectors, who retained a percentage of the money they collected and turned the rest over.

Wikipedia said that one of the first successful American franchises was started by John S. Pemberton. In 1886, he concocted a beverage and then licensed selected people to bottle and sell the drink – Coca-Cola.

McDonalds is top of the franchising league table.