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Census Bureau Report: Franchise Businesses Help the Economy

Category: Uncategorized Publish on Aug 02

A recent study from the U.S. Census Bureau reports that franchises play a vital role in today’s challenging economy. Released in September 2010, the Economic Census Franchise Report was the first comprehensive report of its kind to be published by the government. The report states, “Franchise businesses accounted for 10.5 percent of businesses with paid employees in the 295 industries for which franchising data were collected in 2007. Of the 4.3 million total establishments surveyed, 453,326 were either franchisee or franchisor-owned businesses.” The new report provides the following insight on how franchising helps support the American economy.


The Franchise Industry Accounts for:

  • Nearly $1.3 trillion of the $7.7 trillion in total sales for businesses with paid employees.
  • $153.7 billion out of the $1.6 trillion in total payroll.
  • 7.9 million workers out of a total workforce of 59 million.

Successful Types of Franchises:

  • The fast food restaurant industry reported the highest number of franchise establishments.
  • New car dealerships and gas stations franchises led in sales for franchise establishments.
  • Franchise diet and weight loss centers concluded 62.7 percent of all sales in the diet and weight loss industry.

While the Economic Census Franchise Report is the first report of its kind from the government, there have been other similar reports published by organizations in the public sector. Like the government’s report, the latest International Franchise Association’s Economic Impact Study provides data gathered in 2007. It, too, demonstrates the significant role franchising plays in the American economy. Highlights from the Latest IFA Economic Impact Study:

  • 17,430,700 jobs are filled within and because of franchised businesses.
  • Over 828,138 franchise establishments exist in the U.S.
  • The direct and indirect economic impact of franchised businesses is $2.1 trillion.
  • The Gross Domestic Product (GDP) of franchised businesses is $1.2 trillion.

Together, the U.S. government’s first Economic Census Franchise Report and the IFA’s Economic Impact Study demonstrate the valuable support that franchising provides American small businesses and workers.