FRANCHISE RESOURCES

Franchise facts


Did you know that in 2001:
  • There were 767,483 franchise business establishments in the US, accounting for 3.2% of all US business establishments.
  • The states with the most franchise establishments were: California (80,340), Texas (59,291), and Florida (50,677)
  • The states with the fewest franchise establishments were: District of Columbia (976), Alaska (1361), and Vermont (1699)
  • Franchises directly provided 9.8 million jobs, or 7.4% of all jobs.
  • Franchises directly provided $229 billion in annual payroll, or 5.0% of all payroll.
  • Franchises directly produced output worth $625 billion, or 3.9% of all payroll.
  • Four of five franchises are business format franchises (e.g., commercial and residential services, retail food); one in five are product distribution franchises (e.g., automotive/truck dealers, beverage bottling, gasoline service stations).
  • Business format franchises created 14.1 million jobs, $369 billion in payroll, and $1.15 trillion in output.
  • Product distribution franchises created 4.0 million jobs, $137 billion in payroll, and $374 billion in output.
  • Franchises were the direct and indirect cause of 18.1 million jobs, or 13.7% of all jobs.
  • Franchises were the direct and indirect cause of $507 billion in annual payroll, or 11.1% of all payroll.
  • Franchises were the direct and indirect cause of $1.53 trillion in output, or 9.5% of all output.
  • Franchises accounted for at least 10% of jobs in 46 states.
  • Franchises accounted for at least 10% of payroll in 40 states.
  • Franchises accounted for at least 10% of output in 20 states.
  • Franchises accounted for 1.9 million jobs in California, 1.4 million jobs in Texas, and 1.3 million jobs in Florida.
  • Franchises accounted for 20.0% of Nevada's jobs, 19.4% of Arizona's jobs, and 17.3% of Mississippi's jobs.
  • Franchises accounted for nearly as many jobs as all durable goods manufacturers.
  • Franchises accounted for $62 billion of payroll in California, $39 billion in Texas, and $33 billion in Florida.
  • Franchises accounted for 19.1% of Nevada's payroll, 17.0% of Arizona's payroll, and 16.3% of New Mexico's payroll.
  • Franchises accounted for $187 billion of output in California, $121 billion in Texas, and $105 billion in Florida.
  • Franchises accounted for 17.1% of Nevada's output, 14.8% of Arizona's output, and 14.7% of Florida's output.
Did you know that in 2006:
  • The top 5 franchise industries were:

    1. fast food
    2. retail
    3. service
    4. automotive
    5. restaurants
  • The top 5 franchise companies by franchise units were:

    1. McDonald's (30,300)
    2. Yum! Brands (29,300)
    3. 7-Eleven (28,200)
    4. Cendant (24,600)
    5. Subway (21,000)

Notes: (1) All jobs, payroll, and output are private-sector figures for year 2001. Source: 2004 Economic Impact of Franchised Businesses, a study conducted for the International Franchise Association Foundation which covered 50 US states and the District of Columbia. (2) Source for Top 5 franchise industries and companies: International Franchise Association membership data (2006)

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