As America’s 250th birthday approaches, it is fitting that one of our country’s greatest inventions is having a moment. Franchising, with roots in the nation’s founding and Benjamin Franklin’s printing press, is everywhere this summer. Pizza Hut has tapped into the desire for nostalgia with its retro dining rooms, complete with iconic red plastic cups and stained-glass lampshades. After two decades as a corporate-owned business, building on its Sex and the City fame, Magnolia Bakery brought its banana pudding to Salt Lake City via its first-ever franchisee. McDonald’s is bringing back fried apple pies for the first time in decades.

One recent headline declared, “Why The World Needs More Franchises.”

Here are three reasons for the momentum.

AI-fueled era of disruption is renewing interest in the ownership economy

The rise of artificial intelligence and soaring costs of higher education are reshaping how the public approaches their professional careers. Suddenly, the traditional path — a four-year degree followed by decades at a corporate job — is no longer such a sure bet. As student debt hits new highs, roughly 7 in 10 college students see AI as a threat to their job prospects.

Rather than taking loans to earn a degree for a job that may not always exist, more people are drawn to franchising. It is a gateway to the “ownership economy.” With a tested business model, a proven brand, operational playbooks, and ongoing support, franchising makes it easier for people to go into business for themselves, but not by themselves.

Spanning more than 300 industries (including AI-resilient sectors such as hotels, home services, and pet care), franchising is becoming more appealing for younger audiences seeking a smarter investment in themselves. Nearly two-thirds (64%) of franchisees are first-time business owners, and 3 in 10 say they would not own a business without franchising.

Franchising means local jobs and opportunity 

Even in this era of disruption and corporate distrust, the popularity of small businesses stands tall. In a Gallup poll ranking Americans’ confidence in major institutions, they ranked at the top.

Perhaps that’s why people trust franchises over large corporations controlled by one entity. The franchise model is effectively corporate federalism, meaning it has distributed power between brands and individual franchise owners who are in touch with their communities and workforce.

Franchising is a small business. According to Oxford Economics, more than 80% of franchisees own just a single location, and 94% of franchised establishments employ fewer than 50 people.

When the American dream feels out of reach for many, the Economist calls franchising its “purest distillation.” Across the United States, franchising supports nearly 8.9 million jobs. Over the last decade, it has grown at almost twice the rate of the national economy.

Franchise workers earn higher wages and have greater access to benefits than non-franchise counterparts — a reason that more than 12,000 new franchise locations are expected to open in 2026.

While the brand names are familiar, the individual locations are run by local entrepreneurs who make the decisions, create jobs, and reinvest in their communities.

Long-term regulatory certainty is on the horizon

Like many other businesses, the greatest threat to franchising comes from Washington, D.C. The federal rule governing the model is called the “joint employer standard.” It establishes the independence between franchisors and their franchisees, plus the legal liabilities the former faces from the latter.

The rule has changed four times over the last decade. The whiplash has left hundreds of thousands of small businesses paralyzed, unable to plan without knowing what is coming next.

Thankfully, Trump’s Labor Department, helmed by acting Labor Secretary Keith Sonderling, is in the process of finalizing a joint-employer rule that would create clear lines of responsibility in the franchise relationship while ensuring workers are still protected.

Congress can also end the uncertainty through bipartisan legislation called the American Franchise Act. The AFA codifies the appropriate federal joint employer standard into law for the franchisor-franchisee relationship, removing it from the political reach of a hostile future White House or Congress.

Even in an election year, the AFA enjoys strong bipartisan support on Capitol Hill, including more than 125 cosponsors in the House of Representatives. Long-term clarity will encourage investment, innovation, and expansion — benefits that flow directly to local economies.

Today, franchising stands alongside flags, fireworks, and freedom as symbols of our nation’s birthday. It blends the innovation of Benjamin Franklin with the grit of Main Street entrepreneurs.

The momentum is real. With strong economic projections, renewed interest in the ownership economy, and the promise of regulatory stability, it has become the summer of franchising. America’s next 250 years will be built, in no small part, by franchise owners chasing — and achieving — the American dream.

Matt Haller is the president and CEO of the International Franchise Association.

Read the full article on Washinton Examiner:

The fast-growing way entrepreneurs are chasing the American dream

👉 https://www.washingtonexaminer.com/op-eds/4621256/franchising-entrepreneurs-chasing-american-dream-small-businesses-pizza-hut/