Loading...
Largest Franchise Associations in the World (2024)
Written by: Parth Parth
Last Updated by
Ailen Faiad: May 17, 2023
Free Download Our Exclusive Business Service Guide
Download Now
Franchising has become an increasingly popular business model for entrepreneurs seeking to expand their brands globally. By establishing a franchise, a business can expand quickly and efficiently without incurring significant costs, while also benefiting from the entrepreneurial spirit and expertise of individual franchisees. With the growth of franchising, franchise associations have emerged to provide support and resources to franchisees and franchisors. These associations play a vital role in promoting and protecting the interests of the franchise industry, and they have a significant impact on the success of individual franchises and the industry as a whole.
The franchise association serves as a centralized hub where franchisors and franchisees can come together to share resources, knowledge, and experience. The association plays a critical role in setting industry standards, establishing best practices, and developing educational programs and training materials to help franchisees and franchisors succeed. They also provide networking opportunities and advocacy efforts on behalf of the industry to local and national governments.
Contents
In this article, we will be exploring the largest franchise associations in the world in 2023. We will look at the size, scope, and impact of these associations and the services they provide to their members. We will analyze the trends and challenges facing the franchise industry, and how these associations are responding to them. By understanding the role of franchise associations in the industry, we can gain insights into the current state and future of franchising and the opportunities and challenges it presents for businesses looking to expand their reach.
The franchise industry is a massive global enterprise that generates billions of dollars in revenue each year. In the United States alone, the franchise industry generates over $800 billion in economic output and supports over 8 million jobs. Globally, the franchise industry has seen significant growth in recent years, with some of the largest associations reporting double-digit membership growth.
In addition to promoting and protecting the interests of the franchise industry, the largest franchise associations in the world also provide a range of services to their members. These services include educational programs, networking opportunities, legal and regulatory support, and marketing and advertising assistance. By providing these resources, franchise associations help franchisees and franchisors succeed and thrive in a highly competitive marketplace.
However, the franchise industry is not without its challenges. One of the most significant challenges facing the industry is regulatory compliance. Franchise associations work closely with government agencies to develop and implement regulations that protect both franchisors and franchisees. Additionally, associations also work to develop and implement ethical and best practice standards to ensure the highest levels of quality and integrity within the industry.
Another challenge facing the franchise industry is the increasing competition from other business models, such as e-commerce and gig economy platforms. These new models are disrupting traditional industries and creating new opportunities for entrepreneurs. Franchise associations are responding to this challenge by developing new programs and resources to help franchisees and franchisors stay competitive in a rapidly changing business environment.
The Franchise Industry in the United States
The franchise industry is a significant part of the economy in the United States, providing opportunities for entrepreneurs to start their businesses and creating employment opportunities for millions of people. According to the International Franchise Association, over 733,000 franchise establishments are operating in the United States, supporting nearly 8.4 million jobs. The industry’s total economic output was $477 billion in 2021, and it is projected to grow by 10.2% in 2022. Quick-service restaurants and retail are the most common types of franchises, accounting for 25% and 15% of all franchises, respectively.
The average initial investment for a franchise is around $250,000, with a median franchise fee of $35,000. The success rate of franchise businesses is generally higher than that of independent small businesses, with an estimated 85% of franchise businesses still operating after five years, compared to 50% of independent small businesses. The franchise industry is expected to continue growing in the United States, with new concepts and industries entering the market, and more entrepreneurs choosing franchising as a way to start their businesses. Overall, the franchise industry remains an essential contributor to the U.S. economy, creating jobs and driving economic growth.
The Biggest Franchise Associations in the World
1. International Franchise Association (IFA)
Based in the United States, IFA is the world’s largest franchise association, with over 1,400 member companies that collectively represent more than 700,000 franchise establishments. IFA’s mission is to promote and protect franchising as a method of doing business.
The International Franchise Association (IFA) is an influential organization that serves as a resource for franchise businesses around the world. Its members include small businesses, large corporations, and individuals from a diverse range of industries, such as Food and Beverage, Retail and Service industries. IFA’s mission is to promote and protect franchising as a method of doing business. It provides its members with various resources, including education, networking opportunities, and advocacy for important issues related to franchising.
IFA membership means committing to being the best franchise professional you can be. As an IFA member, you will have access to the tools and solutions that you need to ensure your success, and the organization’s programs and resources will support you every step of the way. The power of community and strength in numbers is something that IFA emphasizes, and it is committed to connecting its members to top-tier success stories and helping them overcome shared challenges.
One of the key benefits of IFA membership is its educational opportunities, which help put your franchise business in the fast lane and develop a franchise system that operates under the highest standards. Its certification programs will expand your knowledge and credibility, and events will help you learn, connect, and grow your business. Invaluable exposure and access to the greatness within IFA’s community can be a recipe for success.
The IFA is also dedicated to advocacy and works hard to support its members. Inclusivity and community are the foundation of the organization’s strength. It has bridged the gap between franchising and diverse communities, strengthened the franchising community, provided countless opportunities, and implemented strategic initiatives that will drive change around the world for generations to come.
The IFA’s Code of Ethics is a set of core values that are the basis for the resolution of the challenges that may arise in franchise relationships. The Code represents the ideals to which all IFA members agree to subscribe in their franchise relationships. The IFA’s members believe that adherence to the values expressed in the Code will result in healthy, productive, and mutually beneficial franchise relationships.
2. World Franchise Council (WFC)
WFC is a global franchise association that represents more than 600,000 franchise establishments in over 50 countries. Its members include national franchise associations and other organizations involved in franchising.
The World Franchise Council (WFC) was established in 1994 by a group of national franchise association executives during the International Franchise Association’s Annual Convention in Las Vegas. The WFC’s beginnings can be traced back to a draft constitution developed by a task force of several countries during the first International Summit sponsored by the Mexican Franchise Association in December 1993. The WFC’s Constitution was adopted on June 15, 1995, in Lisbon, and has since been revised several times throughout the years.
The primary purpose of the WFC is to promote international understanding and cooperation within the franchise industry. This involves advocating for policies and laws that support the franchise industry and sharing best practices and knowledge among its members. The WFC also works to maintain ethical standards within the franchise industry and to protect the interests of franchisees and franchisors.
The WFC’s membership is diverse, with representation from various countries, including the United States, Canada, Mexico, and various European countries. The organization has a strong focus on collaboration and communication among its members. The WFC’s formal Constitution ensures that the organization’s opinions represent a genuine consensus among its members and that the organization offers an equitable forum for members to represent their views.
Through its various initiatives, the WFC is committed to advancing the franchise industry on a global scale. It provides valuable resources and support to its members, including education, networking, and advocacy. The WFC is dedicated to promoting the growth and success of franchising and strengthening the franchise system as a whole.
3. European Franchise Federation (EFF)
EFF represents the interests of the European franchise industry and has over 20 national franchise association members. The federation represents more than 14,000 franchise systems across Europe.
The European Franchise Federation (EFF) was established in 1972 as a non-profit association to promote, defend, and represent the franchise industry in Europe. The EFF community consists of national franchise associations across the EEA area, as well as the UK and Turkey, who uphold and promote core values through the Code of Ethics on Franchising. The EFF’s mission is to be the single and authoritative voice for the promotion of ethical franchising in Europe with all relevant authorities, to promote the franchise business model in compliance with a self-regulatory framework for ethical franchising, and to provide a platform for the exchange of best practices and benchmarking for the community of associations and their franchise members.
The EFF’s board of directors consists of franchisors and franchisees who work together to achieve the organization’s mission. The board members come from different countries and represent various industry sectors within the franchise community. The EFF’s vision is that the franchise industry will only grow sustainably if it is underpinned by a robust set of ethical standards and principles, as defined by the Code of Ethics for Franchising. The EFF community is committed to promoting ethical franchising through lobbying, self-regulation, and building a best-practice community of associations and franchises.
The EFF is recognized as the leading voice for ethical franchising in Europe, and its member associations have built their reputation on promoting the principles of the Code and developing significant accreditation procedures for their franchise company membership.
4. Asia Pacific Franchise Confederation (APFC)
APFC is a regional franchise association that represents more than 1,000 franchise systems in the Asia Pacific region, including China, Japan, South Korea, and Australia.
The Asia-Pacific Franchise Confederation (APFC) is a non-political association of national franchise associations in the Asia-Pacific region, which was founded on September 24, 1998, with 15 founding members. The APFC’s objectives are to provide a platform for national franchise associations to share experience, information, and technical know-how on franchising and to encourage the development of national franchise associations in the Asia-Pacific region to strengthen industry networking. The APFC holds meetings once per year, and its secretariat is rotated from country to country. Membership is open to national franchise associations in the Asia-Pacific region that meet certain criteria, with one association per country recognized by the APFC. The Philippine Franchise Association is the current secretariat of the APFC.
Franchising is a rapidly growing industry in the Asia Pacific region, and the APFC plays a crucial role in advancing the industry and promoting ethical franchising practices. With more than 1,000 franchise systems represented by the APFC, the organization serves as a valuable resource for national franchise associations and their members. Through its meetings and events, the APFC provides a platform for networking, sharing best practices, and discussing the latest trends and developments in the industry. The APFC also works to advance the interests of its members and the franchise industry as a whole by presenting a united voice to international bodies, such as the World Franchise Council. As the APFC continues to grow and expand its reach, it will undoubtedly play an increasingly important role in shaping the future of franchising in the Asia Pacific region.
The APFC provides a range of services and benefits to its members, including opportunities for networking, access to regional and international events, and the promotion of ethical franchising practices. By offering a range of tools and resources, the APFC supports the growth of its member associations and franchise systems, driving the development of the franchise industry in the Asia-Pacific region.
The APFC also works to enhance the global reach of the franchise industry by representing the common views of national franchise associations in the Asia-Pacific region to international bodies, such as the World Franchise Council. As a result, the APFC plays an important role in shaping the future of franchising, not just in the Asia-Pacific region, but across the world.
Overall, the Asia Pacific Franchise Confederation has a vital role in promoting, protecting, and advancing franchising in the Asia-Pacific region. Through its commitment to ethical practices, best-in-class resources, and support for the growth of national franchise associations, the APFC is well-positioned to continue driving the development of the franchise industry in the region and beyond.
5. Canadian Franchise Association (CFA)
CFA is the national franchise association for Canada and represents more than 700 member companies that collectively operate over 40,000 franchise establishments. CFA’s mission is to foster the growth and success of franchising in Canada.
As the recognized authority on franchising in Canada, the CFA is the voice of the franchise community, advocating on issues that impact franchising and connecting people with opportunities for learning and growth.
The CFA’s mission is to amplify the understanding and power of franchising in Canada, supporting its members in promoting excellence in franchising, and contributing to the Canadian economy. Canadian franchises contribute over $100 billion per year to the economy and provide jobs for over 1.9 million Canadians. By providing support, learning resources, and growth opportunities, the CFA serves the people in the Canadian franchise community and helps everyday Canadians realize the dream of building their businesses.
The Canadian Franchise Association (CFA) provides a range of resources and support to its members, with the aim of fostering growth and success in the Canadian franchise industry. One key area of support is advocacy, as the CFA works to address issues impacting franchising in Canada. This includes advocating for fair franchising laws and regulations, as well as promoting the benefits of franchising to policymakers and the public. In recent years, the CFA has been involved in advocating for reforms to franchise laws in Ontario, as well as pushing for more support for small businesses impacted by the COVID-19 pandemic.
In addition to advocacy, the CFA also provides learning and growth opportunities for its members. This includes hosting events such as conferences and workshops, which offer opportunities for members to network, learn best practices, and gain insights into the latest trends in franchising. The CFA also provides online resources, such as webinars and e-learning courses, which can be accessed by members at any time. These resources cover a wide range of topics, including franchise development, operations, marketing, and more.
The CFA also provides a variety of other programs and services to its members, such as access to industry research, benchmarking, and marketing resources. Through its various initiatives, the CFA aims to support the growth and success of its member companies, as well as the wider franchise industry in Canada.
6. Asian American Hotel Owners Association (AAHOA)
AAHOA (Asian American Hotel Owners Association) is a non-profit organization founded in 1989. It is the largest association of Asian American hotel owners in the United States. Its main objective is to promote the interests and prosperity of Asian American hotel owners in the hotel industry. AAHOA provides a variety of services and resources to its members, including education, advocacy, networking opportunities, and access to relevant information for the hotel business. It also offers training programs and events that help hotel owners improve their skills and knowledge in the industry. AAHOA is dedicated to strengthening the community of Asian American hotel owners and fostering excellence in the hotel industry overall.
AAHOA plays a crucial role in representing the interests of its members and advocating for their needs within the hospitality industry. Through its extensive network and partnerships, AAHOA works to ensure that Asian American hotel owners have a strong voice and are included in important discussions and decision-making processes.
The organization offers educational programs and resources to help its members stay updated on industry trends, best practices, and regulatory changes. These initiatives aim to enhance the skills and knowledge of hotel owners, empowering them to run successful businesses and provide exceptional experiences for their guests.
In addition to education, AAHOA actively engages in advocacy efforts at the local, state, and national levels. By collaborating with policymakers and industry stakeholders, the organization strives to create a favorable business environment for its members. AAHOA advocates for fair regulations, tax policies, and economic initiatives that benefit Asian American hotel owners and the overall hospitality sector.
7. American Association of Franchisees and Dealers (AAFD)
The American Association of Franchisees and Dealers (AAFD) is a national non-profit trade association that represents the rights and interests of franchisees and independent dealers throughout the United States. The AAFD was formed by Declaration of Trust in May of 1992 with the original mission of “Bringing Fairness to Franchising,” and its current mission is to achieve Total Quality Franchising by promoting fair and equitable franchising and dealer practices and empowering effective independent franchise associations. The AAFD is dedicated to marketplace solutions to the current imbalance within the franchising community.
The franchising community has experienced explosive growth over the past 50 years, and franchisors have learned that they need to promise very little in order to attract buyers. The modern-day franchise agreement provides no exclusive territory, and restricts the activities of the franchisee as an independent businessman, provides that the franchisor controls the franchise location. It also restricts the franchisee from continuing in business upon the termination of the franchise. In many cases, the modern-day franchisee is merely a license to operate the business on behalf of the franchisor for the term of the franchise. Some franchises specifically state that the franchisee owns no equity in the business and that the business really belongs to the franchisor. Most modern franchise agreements promise very few required services and little support from the franchisor.
The franchising marketplace is seriously out of balance, and there has been no significant market correction over the past 50 years. Although there were efforts during the 1970s to curb fraud in franchising practices, the enormous unbridled power of the franchising community was able to influence legislative efforts so that a franchisor could “cure” any deficiency in its franchise practices by merely disclosing the abuses.
Unfortunately, current laws that purport to regulate franchising effectively legalize rather than restrict abusive franchising practices. As long as the franchisor discloses the details of its practices, the practices are enforceable. Until recently, there have been no minimum standards of fairness to protect the legitimate interests of franchisees.
The AAFD seeks to serve the franchising community by promoting that which is good and healthy and excising that which is exploitative and unscrupulous. Although only in its fifth year of existence, the AAFD has seen a remarkable shift in the currents in the franchising community. The AAFD believes a balance can be achieved through a process of education combined with the encouragement and support for trademark-specific franchisee associations seeking to achieve Total Quality Franchise Relationships.
The AAFD aims to create an effective independent franchisee association affiliated as an AAFD Trademark Chapter for every franchise system in America. The Association targets the 500,000 franchised businesses and the approximately 500,000 independent dealerships to become voting members. Membership is also open to millions of Americans who have an interest in owning a franchised business and the many hundreds of thousands of companies that seek to do business with franchisees.
The AAFD has established a lofty goal of achieving Total Quality Franchising, which it pursues through five principal goals of service: Market Support Services, Legislative & Legal Advocacy, Education, Accreditation, and Ethics. The AAFD’s Market Support Services aims to promote negotiated franchise relationships within the franchising community and generally enhance economic and market power for franchisees by identifying, developing, and implementing programs, products, and services to build economic strength and bargaining power for the members.
The AAFD’s Legislative & Legal Advocacy goal is to represent Association members by exerting collective influence in matters of mutual concern and by advocating beneficial legislation and legal doctrines and providing legal support for members. The AAFD’s Education goal is to provide ongoing and current educational programs, professional development opportunities, information exchanges, and research endeavors to meet the continuing needs of the association’s membership. The AAFD’s Accreditation goal is to foster, establish, and maintain standards and responsibilities, and experience among franchisors and franchisees, and to acknowledge and reward exemplary practices by companies engaged in franchising and other forms of dealer distribution systems. Finally, the AAFD’s Ethics goal is to promote and maintain high standards of service and business integrity through the dissemination, application, and enforcement of the Association’s Code of Ethics and Standards of Professional Responsibility.
Summary
Franchising is a way for entrepreneurs to start their businesses, leveraging the benefits of a well-established brand and business model. It has become a significant contributor to the global economy, generating billions of dollars in revenue and providing employment opportunities for millions of people worldwide.
The franchise industry is a massive global enterprise that generates billions of dollars in revenue each year. In the United States alone, the franchise industry generated over $800 billion in economic output and supported over 8 million jobs. The industry has seen significant growth in recent years, with some of the largest associations reporting double-digit membership growth.
The largest franchise associations in the world provide a range of services to their members. These services include educational programs, networking opportunities, legal and regulatory support, and marketing and advertising assistance. By providing these resources, franchise associations help franchisees and franchisors succeed and thrive in a highly competitive marketplace.
The largest franchise associations in the world include the International Franchise Association (IFA), which has over 1,400 member companies representing more than 700,000 franchise establishments; the World Franchise Council (WFC) with over 600,000 franchise establishments in 50 countries; and the European Franchise Federation (EFF) with over 20 national franchise association members representing more than 14,000 franchise systems across Europe. These associations aim to promote and protect franchising as a method of doing business, maintain ethical standards, and support the interests of franchisees and franchisors. IFA membership provides access to tools and resources for success, while the WFC and EFF work toward promoting international understanding and cooperation within the franchise industry.
The franchise associations work with government agencies to develop regulations that protect franchisors and franchisees, and ethical standards to maintain quality and integrity within the industry. The franchise industry faces the challenges of regulatory compliance and competition from new business models, such as e-commerce and gig economy platforms. Franchise associations respond by developing new programs and resources to help franchisees and franchisors stay competitive in a changing business environment.
In conclusion, franchise associations play a crucial role in the franchise industry, providing a range of services to their members, including educational programs, networking opportunities, legal and regulatory support, and marketing and advertising assistance. These associations work closely with government agencies to develop and implement regulations that protect both franchisors and franchisees and ensure the highest levels of quality and integrity within the industry.
The franchise industry is not without its challenges, including regulatory compliance and increasing competition from other business models. However, franchise associations are responding to these challenges by developing new programs and resources to help franchisees and franchisors stay competitive in a rapidly changing business environment.
The franchise industry is a significant contributor to the global economy, generating billions of dollars in revenue and providing employment opportunities for millions of people worldwide. It is expected to continue growing in the coming years, creating new opportunities for entrepreneurs to start their businesses and driving economic growth in many countries around the world.
Visit our website Vetted Biz to find out more franchise opportunities available to you!
