Brands We Thought Were Franchises

In the U.S., we idolize big brands. For many prospective business owners, their aspirations to be great start with multi-unit, fast-growing legacy brands like McDonald’s, Dairy Queen and Subway to show us the right pathway to success. They’ve all exhibited rapid growth for decades, and they’re all franchises.

A lot of the world’s biggest chains look the same, act the same and serve the same stuff, and for that reason, it’s pretty easy to assume that they’re also franchises. But did you know that not all big chains are synonymous with franchising? Before diving into your next venture, check out our list of the top chains that aren’t franchise brands.

Coffee brands

Starbucks

With a mission “to inspire and nurture the human spirit—one person, one cup and one neighborhood at a time,” Starbucks has been able to become a global powerhouse brand. Unfortunately, for aspiring entrepreneurs looking to get a taste of business ownership with Starbucks, it might be a little harder than you initially thought to bring that vision to your neighborhood.

Touting more than 22,000 locations worldwide, Starbucks chose to go public in 1992—a move that had them building the brand by holding onto their own locations rather than franchising. But the brand does have special licensing agreements with various entities around the world (airport locations, national grocery chains, major food services corporations, college and university campuses, and hospitals) that they also use to grow.

Other franchise brands in the coffee space: Dunkin’ Donuts, Scooter’s Coffee, Maui Wowi Hawaiian Coffees & Smoothies and Biggby Coffee

Breakfast chains

Cracker Barrel

According to the breakfast brand’s website, in 2015, Cracker Barrel sold 69,474,344 pancakes. With such a loyal following, and more than 600 stores in 42 states, it’s hard to believe they don’t utilize franchising as a means for continued growth—all locations are company-owned and operated.

The brand explains that their decision to not franchise was made to ensure the authentic country comforts that their guests rely on. And while Cracker Barrel has seen tremendous success on their own, there’s no denying that franchise brands can deliver a very high-quality experience.

Fast casual brands

Chipotle

For years, people have been addicted to Chipotle, always wanting more. Unfortunately, Chipotle opportunities for prospective franchisees might be off the table for a long time, if not forever.

"We believe that companies franchise for two reasons," said Chris Arnold, Chipotle's communications director, in an interview with Entrepreneur Magazine. "Either they need money to grow or they need operators to run restaurants."

Chipotle currently doesn’t need franchisees or additional capital as they continue to bring in a huge revenue in their market.

In-N-Out

The iconic California, burger brand In-N-Out opened their first store in 1948. By 2015, they were celebrating the opening of their 300th restaurant—all of which are company owned.

In September 2015, In-N-Out president, Lynsi Snyder told CBS This Morning in an exclusive interview that the brand will never franchise—that a very definitive answer for this better burger brand.