Franchise Statistics

NATIONAL OVERVIEW

Direct Contributions to the U.S. Economy in Franchised Business

Jobs 11,029,206 8.1 %
Payroll $ 278.6 billion 5.3 %
Output $ 880.9 billion 4.4 %
Establishments 909,253 3.3 %
  • There are 909,253 franchised business establishments in the United States.
  • Franchised businesses provide more than 11 million jobs or 8.1 percent of the national private-sector workforce.
  • Franchised businesses supply an annual payroll of $278.6 billion, or 5.3 percent of all private-sector payrolls in the United States.
  • Franchised businesses produce goods and services worth $880.9 billion per year, or 4.4 percent of private-sector output in the United States.
  • Include in “franchised businesses” all those establishments that are part of a franchise system – those businesses owned by franchisees and those owned by the franchisor.

Total Contributions to the U.S. Economyuse of Franchised Businesses

Jobs 20,974,636 15.3 %
Payroll $ 660.9 billion 12.5 %
Output $ 2.31 trillion 11.4 %
  • Franchised businesses demand products and services from other businesses and provide income to their workers and owners, who then spend their income with other parties.
  • As this cycle repeats, the jobs, payroll and output that exist because of franchised businesses grow beyond the jobs, payroll and output that are in franchised businesses alone.
  • Franchised businesses are the cause of nearly 21 million jobs or 15.3 percent of all U.S. private-sector jobs.
  • Franchised businesses are the cause of $660.9 billion of annual payrolls, or 12.5 percent of all private-sector payrolls in the United States.
  • Franchised businesses are the cause of $2.31 trillion of annual output, or 11.4 percent of all private-sector output in the United States.
  • The IFA list over 75 industries that use franchising to distribute goods and services to consumers.

Source: International Franchise Association ©

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