U.S. franchises produced $963 billion in output in 2023 and supported 9 million jobs. The sector paid $228 billion in wages and $55 billion in taxes that year. The sections below present employment figures, unit counts, market growth, and sector shares.
Key Takeaways
- U.S. franchises supported 9 million jobs in 2023.
- Franchise sector payroll $228 billion in 2023.
- 8.9% of U.S. private sector employment from franchises.
- U.S. franchise units totaled 839,211 in 2023 estimates.
- Business format franchises: 478,142 establishments in 2022.
- Product distribution franchises: 339,390 establishments 2022.
- The U.S. franchise industry generated $963 billion in output in 2023.
- Global franchise market size reached $1.8 trillion in 2022.
- U.S. franchise sector grew by 2.1% in economic output from 2022 to 2023.
- 85% franchisee satisfaction rate in 2023.
- Average ROI for franchises 15-20% annually.
- 92% of franchisees enjoy operating business.
- Food & beverage franchises 36% of total units.
- Business services 18% of franchise establishments.
- Health & fitness 12% market share in units.
In 2023, U.S. franchises backed 9 million jobs, contributing $963 billion GDP through resilient, expanding operations.
Related reading
01 · Category
Economic Impact24 stats
01
U.S. franchises supported 9 million jobs in 2023.
02
Franchise sector payroll $228 billion in 2023.
03
8.9% of U.S. private sector employment from franchises.
04
Franchises generated $963 billion GDP contribution.
05
Average franchise employee wage $38,000annually.
06
Franchise taxes paid $55 billion federal/state/local 2023.
07
40% of franchise jobs in food service.
08
Franchises created 250,000 net new jobs 2022-2023.
09
Small business share: 90% franchises under 500 employees.
10
Franchise royalties average 6% of gross sales.
11
Total franchise investment $1.2 trillion capital.
12
Franchises contribute 15% to retail sales GDP.
13
2.5 million franchise employees full-time equivalent.
14
Economic multiplier effect 2.3x for franchise spending.
15
Franchises account for 21% of GDP in service sectors.
16
Annual franchisee earnings average $150,000profit.
17
SBA loans to franchises: $30 billion yearly.
18
Franchise sector resilience: 85% survival rate 5 years.
19
Total franchise supply chain spend $400 billion.
20
Franchises generate $100 billion in state GDP avg.
21
35% of Black-owned businesses are franchises.
22
Women own 20% of franchise units.
23
Veterans own 10% of franchises, employing 50,000 vets.
24
Hispanic franchise ownership up 15% since 2018.
Interpretation
Economic Impact Interpretation
While franchises are often joked about as cookie-cutter operations, these numbers prove they are actually the robust, job-creating dough of the American economy, responsibly seasoned with diversity and baked with a surprising 85% survival rate.
02 · Category
Franchise Units & Establishments28 stats
01
U.S. franchise units totaled 839,211 in 2023 estimates.
02
Business format franchises: 478,142 establishments in 2022.
03
Product distribution franchises: 339,390 establishments 2022.
04
Top 200 franchisors control 40% of all franchise units.
05
Average franchise system has 150 units in 2023.
06
78% of franchises are multi-unit owned.
07
New franchise unit openings: 28,000 in 2022 U.S.
08
Closures: 19,000 franchise units in 2022.
09
International units represent 15% of U.S. franchisor total.
10
Food sector franchises: 250,000+ units in U.S.
11
3,000+ franchise brands active in U.S. 2023.
12
Multi-brand ownership in 45% of franchisees.
13
Average age of franchise system: 12 years.
14
Hotel franchises: 45,000 units globally.
15
Retail franchises grew 2.5% in units 2022.
16
62% of franchises are single-unit operators.
17
Emerging brands (<10 units) totaled 1,200 in 2023.
18
Fitness franchises: 20,000+ units U.S.
19
Service franchises: 300,000 establishments 2022.
20
Beauty/personal care: 35,000 franchise units.
21
Education franchises expanded 4% in units 2023.
22
Quick service restaurants: 220,000 units U.S.
23
Healthcare franchises: 15,000 units 2023.
24
Real estate franchises: 28,000 offices globally.
25
Pet services: 12,000 franchise locations U.S.
26
Senior care franchises grew 6% to 18,000 units.
27
Travel franchises: 8,500 units worldwide.
28
Cleaning services: 45,000 franchise outlets.
Interpretation
Franchise Units & Establishments Interpretation
While a vast landscape of 839,211 U.S. franchise units suggests a thriving democracy of small business, the reality is a tightly scripted oligopoly where the top 200 brands control 40% of the turf, the average owner runs multiple outposts, and for every plucky new opening there's a seasoned veteran quietly closing its doors.
03 · Category
Market Size & Growth30 stats
01
The U.S. franchise industry generated $963 billion in output in 2023.
02
Global franchise market size reached $1.8 trillion in 2022.
03
U.S. franchise sector grew by 2.1% in economic output from 2022 to 2023.
04
Franchise business format establishments increased 1.8% to 478,142 in 2022.
05
Projected U.S. franchise output to reach $1.1 trillion by 2025.
06
International franchise market expected to grow at 5.5% CAGR through 2030.
07
U.S. franchise GDP contribution was 4.3% of total GDP in 2023.
08
Franchise sector sales reached $890 billion in direct sales in 2023.
09
Global franchising revenue hit $3.2 trillion in 2023 estimates.
10
U.S. franchise industry expansion rate averaged 3% annually 2018-2023.
11
Franchise market in Asia-Pacific grew 7.2% in 2022.
12
U.S. product distribution franchises output $306 billion in 2023.
13
Total U.S. franchise establishments at 817,532 in 2022.
14
Franchise industry projected 4% growth in 2024.
15
European franchise market valued at €1.2 trillion in 2022.
16
U.S. franchise output per capita $2,900in 2023.
17
Franchise sector CAGR 2.5% from 2020-2023.
18
Global fast-food franchise market $1.5 trillion in 2023.
19
U.S. franchise establishments grew 12% from 2017-2022.
20
Franchise business output share 10% of private sector GDP.
21
Latin America franchise market $150 billion in 2022.
22
U.S. franchise sales volume up 5.3% YoY in 2023.
23
Middle East franchise investment $25 billion annually.
24
Franchise market resilience shown by 1.5% growth during 2020 pandemic.
25
U.S. franchise sector valued at $2.3 trillion total impact 2023.
26
India franchise market to reach $20 billion by 2025.
27
Canada franchise GDP contribution 5% in 2022.
28
Australia franchise turnover $170 billion AUD 2023.
29
U.K. franchise sector 48,000 outlets employing 710,000.
30
Projected global franchise growth 6% CAGR 2023-2030.
Interpretation
Market Size & Growth Interpretation
For an industry that loves uniformity, the franchise model has proven to be a remarkably adaptable and colossal economic engine, growing with stubborn resilience to generate trillions globally while becoming so embedded in daily life that its annual output amounts to nearly three thousand dollars for every American.
More related reading
04 · Category
Performance & Trends20 stats
01
85% franchisee satisfaction rate in 2023.
02
Average ROI for franchises 15-20% annually.
03
92% of franchisees enjoy operating business.
04
Digital marketing adoption 75% in franchises.
05
Sustainability initiatives in 60% of top franchises.
06
Labor shortage impacts 70% of food franchises.
07
E-commerce integration 40% growth in retail franchises.
08
Average franchise fee $35,000in 2023.
09
Royalty fees average 5.8% of sales.
10
Tech investment up 25% YoY in franchises.
11
Multi-unit growth 10% annually.
12
Female franchisee satisfaction 88%.
13
International expansion 20% of top 200 franchisors.
14
Supply chain disruptions affected 55% in 2022.
15
AI adoption 30% in operations by 2024.
16
Net promoter score avg 65 for franchises.
17
Inflation impact: 12% cost increase 2023.
18
Refranchising trend 15% of units.
19
Ghost kitchens 25% growth in food sector.
20
ESG reporting 50% of large franchisors.
Interpretation
Performance & Trends Interpretation
While franchisees are overwhelmingly happy and profitable, their success is a high-wire act of managing rising costs, labor shortages, and supply chain woes, all while racing to adopt the latest tech and trends to stay ahead.
05 · Category
Sector Breakdown19 stats
01
Food & beverage franchises 36% of total units.
02
Business services 18% of franchise establishments.
03
Health & fitness 12% market share in units.
04
Retail 10% of franchise output.
05
Education/childcare 8% of total franchises.
06
Automotive 7% of product distribution franchises.
07
Hotels 6% global franchise units.
08
Senior care 5% growth leader in services.
09
Pet care 4% of emerging sectors.
10
Beauty salons 3.5% unit share.
11
Real estate 3% of total franchisors.
12
Cleaning/janitorial 9% business services.
13
Travel agencies 2% declining sector.
14
Quick service food 25% revenue dominant.
15
Home services 11% fastest growing.
16
Convenience stores 5% product dist.
17
Fitness gyms 15,000 units, 10% share.
18
Medical staffing 4% healthcare slice.
19
Laundry/dry cleaning 2.5% retail.
Interpretation
Sector Breakdown Interpretation
The franchise world is a hearty meal of food and beverage, spiced with business services, garnished with a side of fitness, and served with the sobering reality that travel agencies are the wilted lettuce on the plate.
Reference
Cite This Report
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APA
Isabelle Moreau. (2026, February 13). Franchise Industry Statistics. Gitnux. https://gitnux.org/franchise-industry-statistics
MLA
Isabelle Moreau. "Franchise Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/franchise-industry-statistics.
Chicago
Isabelle Moreau. 2026. "Franchise Industry Statistics." Gitnux. https://gitnux.org/franchise-industry-statistics.
Sources & references
33 datasets cited across this report · attribution is report-level