Who Actually Owns and Benefits from Franchise Businesses?

Franchise businesses are independently operated by local franchise owners, providing entrepreneurial opportunities to first-time business owners, career paths for workers, and giving back to local economies. These are local small businesses who create jobs, provide essential services, and uplift the communities they serve.

 

  • Supports first-time franchise owners: Sixty-four percent of local franchise owners are first-time business owners. One in five franchise owners was an employee at the same or another franchise brand before starting their own business.

 

  • Strengthens local communities: Eighty-five percent of franchise owners live in the community where they operate. Eighty-three percent of franchisees give to local charities that fund schools, sponsor youth sports and support local nonprofits and charities. Franchisees on average purchase 40% of goods from other local businesses in their community.

 

  • Creates ownership opportunities: Franchise businesses are more likely to be owned by people of color, women and veterans than non-franchise businesses. Veterans, women and people of color generate higher income through the franchise model.

 

  • Uplifts workers: Franchises offer greater opportunities for wage growth, more generous benefits, stronger retention rates, and career growth than non-franchises. Part-time employees of franchises are 20% more likely to transition into full-time roles than non-franchises. Employees of franchises are 3-7% more likely to receive benefits than non-franchised businesses employees. After 1 year, non-franchise employees are 49% more likely to leave than franchise employees.

 

  • Drives the U.S. economy: The franchise model is a major economic driver across the country, supporting 832,000 franchise establishments, 8.8 million jobs and $907 billion in annual economic output.

 

 

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