6 Inspiring Franchise Success Stories That Transformed Industries

In 2022, there will be 792,000 franchise establishments in the United States, with an estimated 827 billion US dollars in revenue. These figures show the power of the United States in franchising business models. It is a testament to the country’s ability to create and sustain successful franchise brands that have reached the global market. Additionally, these statistics underscore the potential of franchising as a viable business model for entrepreneurs. Do you want to be inspired by the success of established brands? Read more about the six inspiring franchise success stories.

1. McDonald’s (Raymond Albert Kroc)

Ray Kroc was the milkshake salesman behind McDonald’s chain, turning it into a global empire. Kroc bought the company from the McDonald’s brothers in 1954 out of frustration that McDonald’s needed to expand more efficiently. The iconic businessman applied Henry Ford’s assembly line concepts to fast food. Moreover, his standardization model resulted in many other franchise concepts.

McDonald’s is one of the most successful franchises in history, With over 37,000 locations worldwide. During the 2022 financial year, McDonald’s franchise restaurants generated a total sales of 109.47 billion US dollars. The fact that the company is a valuable global franchise is a manifestation of powerful franchising. It shows that a franchise business can succeed with the right resources, dedication, and hard work. 

2. Kentucky Fried Chicken (Harland “Colonel” Sanders)

At 62, when people typically consider retirement, Colonel Harland Sanders established KFC. Age was always just a number for the visionary KFC founder. He made a special fried chicken recipe that people loved. Sanders took $105 from his Social Security check and traveled the country to convince restaurant owners to franchise as Kentucky Fried Chicken establishments.

At 74, he decided to sell his organization; KFC was like a child to him, and selling it off was not an easy decision for Sanders! The new proprietor of KFC accepted that the face of Sander’s was perhaps the best resource for the “KFC brand.”

He was kept as a brand ambassador, and to date, we see Sander’s face on the logo of KFC. Currently, it is the globe’s second-biggest restaurant chain after McDonald’s, with over 24,000 locations. 

3. Hilton Hotels (Conrad Hilton)

Hilton Garden Inn Reno, Nevada (Credit: hilton.com)

From humble beginnings to global recognition, witness the journey of Conrad Hilton, the visionary founder who transformed a single hotel into a worldwide empire. From his first hotel in Cisco, Texas, in 1919, Conrad Hilton only sometimes wanted to be in the lodging industry. His original plan was to become an oil magnate, but his first deal of investing in a bank in an oil town fell through. After this plan failed, Hilton focused on real estate and ended up buying hotels across Texas. At one point, he lost several hotels and almost filed for bankruptcy.

After the economy turned, the hotelier’s business took off. He soon owned iconic hotels like the Waldorf Astoria and the Plaza Hotel and went on to receive honorary degrees from six different universities. 

Hilton is one of the world’s largest hotel chains today, with over 6,500 properties in 119 countries. Hilton Hotels & Resorts is a widely recognized brand known for its luxury accommodations and exceptional hospitality.

4. 7-Eleven (Joe C. Thompson)

The 7-Eleven convenience store franchise is fourth in our success stories. Presently, 7-Eleven operates over 70,000 stores in 17 countries. Known for its 24/7 service and wide range of products, 7-Eleven has become integral to many communities.

Joe C. Thompson founded the company in 1927 as an ice and beverage stand in Dallas. Thompson launched the 24/7 store in 1960 and rapidly became successful. Now its business model is copied by many competitors.

In 1980, 7-Eleven’s parent company experienced a financial loss in the same year due to the stock market crash. But in 1987, Japan’s largest convenience store company bought them. 7-Eleven re-established itself as one of the American convenience store leaders and continues to grow.

5. Subway (Fred Deluca)

Fred Deluca borrowed $1,000 at age 17 to start his sandwich shop to help pay for college at the University of Bridgeport in Connecticut. Initially calling it “Pete’s Submarines,” after the man who loaned him the money, Deluca sold 315 sandwiches on his first day. After a few name changes, Deluca decided to go with the name Subway and decorated his store interiors with New York City subway maps.

Subway is another notable franchise success story. It has over 44,000 locations in more than 100 countries. Subway’s customizable sandwich concept and emphasis on healthier options have helped it gain widespread popularity.

6. Auntie Anne’s (Anne Beiler)

Auntie Anne’s, the beloved pretzel chain, has become an international sensation with its delectable pretzels and warm, inviting atmosphere. Auntie Anne’s was established in 1988 by Anne Beiler and her husband, Jonas Beiler, in Downingtown, Pennsylvania. Anne Beiler developed a recipe for hand-rolled, freshly baked pretzels that quickly became popular among locals. Realizing the potential of her product, she decided to turn it into a business.

In 1989, Auntie Anne’s started offering franchises, allowing entrepreneurs to open their pretzel shops using the brand’s recipes and business model. This franchise model proved successful, and Auntie Anne’s began to expand rapidly across the United States.

Conclusion 

Aspiring entrepreneurs should think outside the box, discover problems and gaps, and develop innovative solutions to create new opportunities. These franchise success stories serve as evidence of the potential that lies within the franchise model. Through the founders’ perseverance, these franchises have transformed their businesses and inspired countless others to follow in their footsteps.