Franchise businesses play a critical role in the U.S. economy, from entrepreneurs who create new businesses, to franchise owners who go into business for themselves but not by themselves, to thousands of individuals who find their first job in a franchise business and go on to lifelong careers in franchising. In addition, thousands of firms provide products and services that franchise owners need to operate their businesses and serve their customers.
In total, franchise businesses account for 5.3% of private sector GDP and more than 8% of private sector jobs.
- 732,000 establishments
- 7.6 million jobs (direct)
- 13.2 million jobs (because of franchising
- $674.3 billion economic output (direct)
- $1.64 trillion economic output (because of franchising)
- $404.6 billion GDP (direct)
- $925.9 billion GDP (because of franchising)
- One of out every 12 Americans in the private sector works in a franchise business or has a job because of franchising.
- One nickel out of every dollar of economic output in the private sector is because of franchising.
Research Resources & Studies
The Economic Impact of Franchised Businesses, Vol. IV, September, 2016, prepared by PwC
This report provides updated estimates of the total economic impact of franchised businesses for the year 2016, using more recent data from the Economic Census and other data sources.View PDF
Arthur Karp Research Award
The IFA Franchise Education & Research Foundation announces the continuation of the Arthur Karp Research Award. The award is given for the best
research paper on a subject of relevance and practical usefulness to the franchising community.