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.

Read the report

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

Chevron’s impact in West Contra Costa County

Post

Chevron’s impact in West Contra Costa County

Consulting Report The value of franchising You might be interested in

Find Out More

Post

The New Rules of Data Management

Consulting Report The value of franchising Creating value in the AI Era You might be interested in

Find Out More

Post

Overcoming the middle-income trap and achieving sustainable development

The middle-income trap is an economic development situation in which a country’s income and economic output growth stagnate once the country is classified as a middle-income nation. This research paper explores how African nations can escape the so-called middle income trap.

Find Out More