Franchise Industry Statistics and Economic Outlook
Franchise Industry Statistics 2007
Nationwide franchise statistics are based on the first ever exhaustive review managed by the Census Bureau in 2007.
The U.S. Census Bureau reports 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.
Additionally, franchise businesses accounted for nearly $1.3 trillion of the $7.7 trillion in total sales for these industries, $153.7 billion out of the $1.6 trillion in total payroll, and 7.9 million workers out of a total workforce of 59.0 million.
National Statistics:
10% of gross number of all businesses are franchises.
15% of total national sales ($1.3T) are Franchises (in comparable fields)
77% are Franchisee owned
22.6% are Franchise Owned
Among franchise businesses, 77.4 percent of the establishments were franchisee-owned, accounting for $1.1 trillion in sales, $125.1 billion in annual payroll and employing nearly 6.3 million workers. Franchisor-owned businesses made up 22.6 percent of franchise businesses, with $210.4 billion in sales, $28.6 billion in annual payroll and 1.6 million workers.
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Other National Highlights 2007
Distribution of Franchise Businesses by Industry, 2014
- Limited-service restaurants, sometimes called fast food restaurants, had the highest number of franchise establishments with paid employees (124,898), followed by gas stations with convenience stores (33,991), and full-service restaurants (30,130).
- New car dealers led in sales for franchise establishments ($687.7 billion), followed by gas stations with convenience stores ($131.1 billion) and limited-service restaurants ($112.6 billion).
- Sales for franchise establishments in the diet weight loss centers industry represented 62.7 percent of all sales for that industry, number three behind new car dealers (100 percent) and limited service restaurants (74.4 percent).
- Limited-service restaurants also had the third highest percentage (59.1 percent) of franchise establishments compared with all establishments within that industry, surpassed only by new car dealers (100 percent) and private mail centers (67.9 percent).
- Sales per establishment in the used auto dealer industry tended to be higher for franchise businesses than for non-franchise businesses. Franchise establishments in this industry reported sales per business of $16.2 million versus $2.5 million for the industry as a whole, a difference of $13.7 million.
Franchise Business Economic Outlook for 2014
Prepared by the International Franchise association built on disparate reports from ADP, Census Bureau and others.
Employment and Income by Industry 2014
Click to View Franchise Business Economic Outlook for 2014 - IHS
As projected in our December 2012 forecast report, 2013 proved to be a year of sub-par growth, with the economy held back by tax increases introduced at the beginning of the year and fiscal drag from the federal government sequester. Our December 2012 forecasts of economy-wide employment growth of 1.6% and real GDP growth of 1.9% in 2013 look to be on target. The performance of the franchise sector in 2013 also appears to have finished the year generally in line with our forecast of a year ago. Growth of the number of franchise establishments (at 1.4%) and franchise output (4.3%) showed gains that were modest but ahead of the overall results for industries where franchises are concentrated. Franchise employment, however, posted stronger than anticipated growth (2.3% versus our December 2012 forecast of 2.0%) boosted by gains in the Quick Service Restaurant segment.
We expect real GDP growth to accelerate to 2.7% in 2014 due to a much smaller federal fiscal drag combined with continued improvements in consumer spending, housing, exports, and business equipment investment. The recent softness in the housing recovery is temporary, although our existing home sales forecast shows slower growth in 2014. We see an acceleration of consumer spending growth from a rate of 2.0% in 2013 to 2.8% in 2014. But we see little acceleration in the pace of employment growth.
The implications for the franchise sector in 2014 are continued gains in employment growth and a modest acceleration of output growth.
We expect the number of franchise establishments in the United States to increase by 1.7% in 2014, ahead of the 2013 pace of 1.4%.
We expect employment in franchise establishments to increase 2.3% in 2014, matching the pace of growth in 2013.