Economic Impact | 21 Sep 2021
The value of franchising
The franchise business model plays an important role within the U.S. economy. Prior to the pandemic, in 2019, the economic output of franchise establishments in the United States was about $787.5 billion and represented 3% of the country’s GDP. Most people immediately associate franchising with fast food restaurants. However, quick service restaurants are just a fraction of the entire sector, making up only a fourth of all franchised establishments, less than half of the workers, and just over a third of the economic output.
Beyond their economic contribution, we find that franchises offer pay, benefits, and training on par with comparable non-franchise small businesses. In addition, 32% of franchisees report they would not own a business if they were not franchisees. Lastly, we highlight how franchisees are embedded in their local communities through their local supply chains and charitable giving.
Our economic consulting team are world leaders in quantitative economic analysis, working with clients around the globe and across sectors to build models, forecast markets and evaluate interventions using state-of-the art techniques.
To find out more about our capabilities, contact:
EMEA
Sam Moore
+44 (0)207 803 1415
Email
Americas
Jeffrey Klonoski
+1 646 503 3048
Email
Asia
Rhianne Clark
+65 6850 0112
Email
Related Services
Post
The economic impact of abandoning the WTO
Oxford Economics have been commissioned by the International Chamber of Commerce (ICC) to provide an independent assessment of the economic impact of WTO dissolution. This report details our findings and the assumptions underpinning our analysis.
Find Out More
Post
The economic impact of the sports activities of public service media
This study shows how the sports activities of public service media supported €4.5 billion of GDP and 57,000 jobs across 31 European countries in 2022, taking direct, indirect (supply chain), and induced (wage-funded expenditure) impacts into account. The report also highlights wider economic benefits of public service media sports coverage, such as the way in which it leverages sponsorship income for sports bodies.
Find Out More
Post
Global Trade Education: The role of private philanthropy
Global trade can amplify economic development and poverty alleviation. Capable leaders are required to put in place enabling conditions for trade, but currently these skills are underprovided in developing countries. For philanthropists, investing in trade leadership talent through graduate-level scholarships is an opportunity to make meaningful contributions that can multiply and sustain global economic development.
Find Out More