IFA, Oxford Economics Release New Franchise Report

September 21, 2021

Washington, D.C. – Today, the International Franchise Association (IFA) and Oxford Economics released a first-of-its-kind report detailing the impact and importance of franchising in America.

The report, The Value of Franchising, reveals how independent franchise owners are local business leaders who contribute to economic growth, job creation and charitable endeavors in their communities. The report also coincides with the launch of IFA’s newly launched, purpose- driven campaign, Open for Opportunity, highlighting the stories of members and what it truly means to be part of the franchising community.

“Today’s report shows how important franchises are to driving our economy forward as we recover from the COVID-19 pandemic. The advantages of the franchise model are undeniable. They drive higher sales, employ more workers than their counterparts and are demonstrated leaders within their own communities, contributing to economic growth, job creation, and charitable endeavors,” said Matthew Haller, President and CEO of the International Franchise Association. “This report, in conjunction with our campaign establishes how franchises are part of something bigger than ourselves. We are rising to our community’s challenges and the franchise model is working—for our families, our neighbors, and our communities.”

Key highlights from the report illustrate how franchises:

  • Report sales 1.8 times as large as comparable non-franchise establishments, on average. Black-owned franchises earn 2.2 times as much in sales compared to Black-owned independent businesses, on average.
  • Provide 2.3 times as many jobs than their non-franchise counterparts, on average.
  • Pass their success on to employees in the form of higher wages and benefits and greater opportunity for advancement.
  • Pay 2.2 – 3.4 percent higher wages than similar non-franchises.

Additionally, the report found that more than 65 percent of franchise workers are offered health insurance, a greater proportion than among small establishments in general.

“After surveying more than 4,000 franchise owners, today’s report is a first-of-its-kind assessment demonstrating the importance of the franchise business model to workers, entrepreneurs, and local communities,” said Hamilton Galloway Head of Consultancy, Americas at Oxford Economics. ““Data-driven evidence showcases the vital role franchises of franchises in the US economy, the country’s recovery from the COVID-19 pandemic and, importantly, why franchises must be included as part of the solution.”

The details were announced today during IFA’s annual leadership summit in Washington D.C.

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About International Franchise Association

Celebrating 60 years of excellence, education, and advocacy, the International Franchise Association is the world's oldest and largest organization representing franchising worldwide. IFA works through its government relations and public policy, media relations, and educational programs to protect, enhance and promote franchising and the more than 733,000 franchise establishments that support nearly 7.6 million direct jobs, $674.3 billion of economic output for the U.S. economy, and 2.5 percent of the Gross Domestic Product (GDP). IFA members include franchise companies in over 300 different business format categories, individual franchisees, and companies that support the industry in marketing, law, technology, and business development.

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