The Value of Franchising

Franchising is a cornerstone of the U.S. economy. To understand it better, in 2025, IFA commissioned a survey of nearly 3,000 franchisees and performed an econometric analysis comparing franchises with non-franchise businesses. The report, conducted by Oxford Economics, shows how franchising combines reliable, trusted brands with local, small business owners to deliver stronger jobs, entrepreneurial opportunities, and deeper community service and investment.

Executive Summary  Read The Full Report

Franchising uniquely blends brand recognition with local ownership, delivering better jobs, expanded access to entrepreneurship, and stronger communities across the United States.

The 2026 Value of Franchising Report highlights how:

  • Franchises are small businesses and much more than fast food.
  • Franchises offer greater opportunities for wage growth, more generous benefits, stronger retention rates, and career growth than non-franchises.
  • Franchising is proven path to business ownership – especially for underrepresented communities and first-time business owners.
  • Local ownership serves local communities – keeping jobs, investment, and charitable giving rooted in local communities.

View Full Report

The Franchise Community By the Numbers

85%

of franchisees live and work in the communities they serve

64%

of franchisees are first-time business owners

83%

of U.S. franchisees gave to local charities

“The Value of Franchising report demonstrates that independent franchise owners are local business leaders who contribute disproportionately to economic growth, job creation, wealth distribution, and charitable endeavors in their communities. Through both survey data and econometric analysis, this report provides compelling data, exhibiting the value provided by businesses that use the franchise model to their industries and communities.”

– Hamilton Galloway, Head of Consultancy, Americas at Oxford Economics

“This study confirms that franchisees are small business and benefits of the franchise business model are powerful for employees, aspiring small business owners, and the communities where they operate across America and the world. As America celebrates its 250th anniversary, this report underscores how one of the greatest American inventions – franchising – has not only created millions of small business owners, but also enabled these small businesses to be more generous employers and remain entrepreneurs at heart. Franchising has opened doors to millions of business owners and their employees from all walks of life, and this report proves why the growth of franchising, and the jobs it creates, continue to outpace other business models.”

- Matt Haller, IFA President and CEO.

Search