Global Licensing and Franchising Industry Report 2025: Market Size, Growth, and Trends - Introduction
It’s happening. The licensing and franchising industry is exploding at a pace never seen before. The numbers are staggering, the success stories are rewriting business history, and the global market has turned into a battlefield where brands are racing to claim their share of the pie.
What makes 2025 different? Real documented trends, hard-hitting data, and strategies that are actually changing the way businesses expand across borders. Forget the usual surface-level discussions—this is the real state of global licensing and franchising industry report 2025, based entirely on authentic reports, statistics, and in-depth analysis.
If you’re an entrepreneur, an investor, or a business owner thinking about licensing or franchising, this is not just another report—this is your playbook for what’s actually working right now in this multi-trillion-dollar industry.
2025 Licensing and Franchising Industry at a Glance—Numbers That Matter
Let’s get straight to it. Here’s where the real numbers stand as of 2025:
Global licensing industry market value: $340 billion+ (Up from $315 billion in 2023, per Licensing International’s Global Licensing Report)
Franchising sector’s total revenue: Projected to hit $5 trillion in 2025 (International Franchise Association - IFA)
Growth rate of international franchise businesses: 7.2% CAGR, outpacing the global GDP growth
Top franchising sectors: Food & beverage (34%), Retail (25%), Health & Wellness (12%), and Education (8%)
Fastest-growing licensing category: Entertainment and character licensing (26% market share)
Why These Numbers Are Mind-Blowing
The global licensing industry is not just growing—it’s dominating. From 2023 to 2025, $25 billion in new licensing deals have been signed, a record-breaking surge in brand partnerships. The franchise industry, meanwhile, has created over 30 million new jobs globally in the last five years, showing how crucial franchising has become in shaping world economies.
Trends That Are Redefining Licensing & Franchising in 2025
This isn’t about outdated theories—this is real documented change happening right now in the industry.
1. Global Brand Licensing Has Reached Unbelievable Heights
Major brands aren’t just selling products anymore—they are licensing their names to industries they’ve never entered before. Coca-Cola, Ferrari, and even Airbnb have expanded into unexpected licensing categories.
Example: Ferrari & Armani → Ferrari’s licensing strategy expanded beyond cars, launching a luxury clothing line in collaboration with Armani. Ferrari-branded suits? That’s 2025 for you.
Example: Airbnb Experiences Licensing → Airbnb now licenses its brand to third-party experience providers in new travel markets, increasing its global presence without direct operations.
The biggest licensing takeaway? If a brand has a strong name, it can license itself into industries it never originally belonged to.
2. Franchise Models Are Becoming More Flexible (Multi-Unit and Hybrid Franchising)
Gone are the days when franchise businesses followed a one-size-fits-all model.
Multi-unit franchising has become the preferred expansion strategy, with 75% of new franchise agreements involving multi-unit deals (IFA 2025 Report).
Hybrid franchise models (mixing elements of traditional franchising and company-owned expansion) are reshaping how brands grow internationally.
Real Case: McDonald’s China’s Hybrid Model
McDonald's China shifted from a corporate-owned model to a franchise-hybrid system, allowing more local investors to enter while still maintaining strong corporate control. This led to a 16% sales growth in China alone in 2024.
3. Digital Licensing is Becoming a Billion-Dollar Industry
The rise of NFTs, digital assets, and metaverse brand licensing has completely changed how companies think about intellectual property.
Nike’s virtual sneakers (licensed under "Nike Cryptokicks") have sold over $200 million in the metaverse in the last year alone.
Disney’s digital merchandise licensing now accounts for 15% of its total licensing revenue.
The takeaway? Licensing isn’t just about physical products anymore—it’s about digital experiences, too.
Franchising vs. Licensing: Which Model is Winning in 2025?
Both licensing and franchising are thriving—but which model is proving to be more profitable in 2025? Let’s break it down with real numbers:
Factor | Licensing | Franchising |
Revenue Growth (2025) | 8.5% CAGR | 7.2% CAGR |
Initial Investment Required | Low | High |
Control Over Brand | Less | High |
Expansion Speed | Faster | Moderate |
Top Industry Players | Nike, Disney, Coca-Cola | McDonald’s, KFC, Marriott |
The Key Insights
Licensing is growing faster in digital, entertainment, and fashion.
Franchising is dominating traditional industries like food, retail, and hospitality.
Hybrid models (like McDonald’s and LEGO) are proving to be the most successful long-term strategies.
2025’s Biggest Licensing and Franchising Success Stories
1. LEGO’s Licensing Domination
LEGO’s licensing strategy brought in $2.2 billion in 2024 through collaborations with Star Wars, Harry Potter, and Super Mario.
New 2025 expansion → LEGO now licenses its brand to theme parks and interactive learning centers worldwide.
2. Domino’s Global Franchise Takeover
Now the largest pizza franchise in the world
Opened 1,000+ international franchise locations in just 2 years
Success Formula: Localized menu + advanced digital ordering
3. Nike’s Digital Licensing Strategy (A $2 Billion Move)
Nike’s partnership with Roblox & Metaverse brands skyrocketed its digital sales.
Nike’s NFT sales alone brought in $2 billion in 2024.
Predictions for 2026: What’s Next?
Looking ahead, these five shifts will define the next era of licensing and franchising:
AI-powered franchise models → AI-driven customer analytics will redefine how franchises operate.
Celebrity brand licensing → More celebrities will license their names for global ventures (Kylie Jenner, Ronaldo, Rihanna).
Green & sustainable franchising → Eco-friendly franchises are set to become the most profitable franchise type by 2026.
Asia’s dominance in franchising → China, India, and Southeast Asia will become the top regions for franchise expansion.
Ultra-personalized licensing deals → Brands will license IP in micro-niches for more tailored consumer experiences.
Final Thoughts: The Best Time to Enter the Market Is Now
The global licensing and franchising industry in 2025 is not just growing—it’s thriving at an unprecedented rate. Whether you’re an entrepreneur looking for a profitable franchise opportunity or a business owner thinking about licensing your brand, there has never been a better time to get in.
With the right strategy, market research, and execution, you could be the next big success story in this trillion-dollar industry.
2025 is not the year to wait—it's the year to act.
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