IFA Report Highlights Franchise Model Benefits

The International Franchise Association (IFA) released the "Value of Franchising" a new report conducted by Oxford Economics, that highlights how franchised businesses provide better benefits, stronger wage growth, greater business ownership opportunities, and increased community contributions than nonfranchise businesses.

"This study confirms that franchisees are small business, and benefits of the franchise business model are powerful for employees, aspiring small business owners, and the communities where they operate across America and the world," said Matt Haller, IFA President and CEO. "As America celebrates its 250th anniversary, this report underscores how one of the greatest American inventions, franchising, has not only created millions of small business owners, but also enabled these small businesses to be more generous employers and remain entrepreneurs at heart. Franchising has opened doors to millions of business owners and their employees from all walks of life, and this report proves why the growth of franchising, and the jobs it creates, continue to outpace other business models."

The 2026 Value of Franchising report, developed from a survey of nearly 3,000 franchise owners nationwide conducted in 2025 and an analysis of detailed payroll data provided by Paychex, shows that:

• Franchises are local, small businesses that give back to their communities. FRANdata reports 82% of franchisees own only one location, 85% of franchisees live and work in the communities they serve, and 83% of U.S. franchisees gave to local charities. Additionally, franchisees purchase an average of 40% of their goods from other local businesses in their community.
• Franchises offer employees stronger wage growth, benefits, and career growth. Wages grow faster over time for employees at franchised businesses than nonfranchises. Franchise employees are 3–7 percentage points more likely to receive key benefits than nonfranchised businesses, including health insurance and paid leave. Part-time franchise employees are approximately 20% more likely to transition into full-time roles than nonfranchise employees. Across similar sectors of the economy, franchise employment grew 10% faster than nonfranchise employment between 2021 and 2024.
• Franchising is a proven path to business ownership. According to the study, 64% of franchisees are first-time business owners, and 30% of franchisees say they would not own a business at all without franchising. Underrepresented groups, such as veterans, women and people of color, are represented as franchisees at a disproportionately higher rate.

The report further describes the diverse nature of franchised businesses, despite commonly being perceived as fast food restaurants, and how franchised businesses are truly small businesses with 94% having fewer than 50 employees. Nearly half (47%) of all franchised brands are relatively small, operating 25 units or less, and only one quarter of all franchises are quick-service restaurants.

"The Value of Franchising report demonstrates that independent franchise owners are local business leaders who contribute disproportionately to economic growth, job creation, wealth distribution, and charitable endeavors in their communities," said Hamilton Galloway, head of consultancy, Americas at Oxford Economics. "Through both survey data and econometric analysis, this report provides compelling data, exhibiting the value provided by businesses that use the franchise model to their industries and communities."

The report builds off an original version of The Value of Franchising, commissioned in 2021, which also found that franchises drive higher sales and provide more jobs than comparable nonfranchise establishments while passing on their success to employees in the form of higher wages and benefits and greater opportunity for advancement.

The full report and a summary of the findings are available here.