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Franchise Statistics

From restaurants to retail, there are no shortages of franchising opportunities available to entrepreneurs – and it can be confusing on how to make a decision. Whether you have many years of experience in owning a franchise and are looking to grow or are planning on buying a franchise, you should always take a look at franchise industry statistics before embarking on any new business plan.

Keep reading for franchise facts culled from the International Franchise Association’s annual economic outlook report and the U.S. Small Business Association.

Facts about franchises


  • 8.8 million: the total number of direct franchise jobs in 2015
  • +247,000: the number of new direct jobs franchises will create in 2015
  • +235,000: the number of new direct jobs the franchise industry created in 2014
  • Franchise types predicted to grow the most:
    • #1: Quick-service restaurants
    • #2: Retail businesses
  • Employment distribution:
    • 65%: Food and hospitality (table and full-service restaurants, quick-service restaurants, retail food, lodging)
    • 29%: Services (business services, personal services, commercial and residential services, retail products and services)
    • 6%: Real estate and automotive


  • 781,794: the number of franchise establishments in 2015
  • +5.4%: predicted growth in franchise economic output for 2015
  • $889 billion: estimated economic output for franchises this year
  • +5.1%: percent by which GDP of the franchise sector will grow (the economy as a whole is predicted to grow by +4.9%)
  • 3.0%: the percent of the economy that comes from the franchise industry


  • 8 minutes: A new franchise business opens every eight minutes every business day
  • 1 out of 12: of every businesses in the U.S. are franchise businesses
  • $250,000: average initial franchise investment (excluding real estate)
  • 10 years: the average length of a franchise contract
  • McDonald’s:the top franchise company
  • 50%:of all retail sales in the U.S. come from the franchise industry

At their core, all franchises are local businesses — and, therefore, need a comprehensive local online marketing strategy to grow. While franchisees must work within their franchisor’s guidelines, there are still many local online marketing activities that franchisees can use to reach the local community.