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.
For more information about the economic impact of franchise businesses in the U.S. economy, visit franchiseeconomy and @ourfranchise.
Research Resources & Studies
Franchise Business Ownership by Minority and Gender Groups - 2018
The primary purpose of this report is to answer two related questions: First, “What percent of franchised businesses are owned by women or minority group members?” Second, “What percent of women-owView PDF
Franchise Business Outlook Jan 2018
This report presents an update of the outlook for the franchise sector of the US economy in 2017 and the outlook for 2018 prepared by IHS Markit Economics for the International Franchise AssociatioView PDF
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
ADP National Franchise Report – Two Year Review
The ADP National Franchise Report provides estimates of job growth in selected industries.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.