GITNUXREPORT 2025

Franchise Industry Statistics

Franchise industry contributes billions, employs millions, and shows strong growth.

Jannik Lindner

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

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Key Statistics

Statistic 1

The average initial investment for a franchise ranges from $150,000 to $250,000, depending on the sector.

Statistic 2

The average revenue for a franchise unit is about $579,000 annually.

Statistic 3

The franchise industry has an average profit margin of about 15-20%.

Statistic 4

The average franchise licensing fee ranges from $20,000 to $50,000.

Statistic 5

Franchise companies frequently offer financing options, with about 65% of new franchisees utilizing some form of financial assistance.

Statistic 6

The return on investment (ROI) for franchise units averages around 20% annually.

Statistic 7

Franchise units that are part of a broader franchise system tend to perform 30% better than independent counterparts.

Statistic 8

The franchise industry offers a median initial investment payback period of approximately 2 to 3 years.

Statistic 9

Franchise companies reported an average franchisee turnover rate of around 15% annually.

Statistic 10

The average franchise revenue per employee is approximately $250,000.

Statistic 11

Around 75% of franchise owners own a single franchise unit.

Statistic 12

Franchise businesses tend to have a higher success rate compared to independent startups, with about 90% survival after five years.

Statistic 13

Approximately 8% of small business owners in the U.S. operate franchise businesses.

Statistic 14

Females own approximately 40% of franchise establishments.

Statistic 15

Millennials make up approximately 25% of all franchise owners.

Statistic 16

Approximately 45% of franchise owners operate multiple units.

Statistic 17

Franchisees report a 75% satisfaction rate with franchise support and training programs.

Statistic 18

The average age of a franchise owner is approximately 48 years old.

Statistic 19

The most prevalent franchise models include business format franchises, product/trademark franchises, and job franchises.

Statistic 20

Approximately 60% of franchise owners started their business with previous management experience in the same industry.

Statistic 21

The top reasons for franchise ownership include brand recognition, proven business models, and ongoing support.

Statistic 22

The median age of franchise startup entrepreneurs is approximately 44 years old.

Statistic 23

Franchise industry employment is highly female-inclusive, with nearly 50% of franchise businesses having at least onefemale owner or senior manager.

Statistic 24

Approximately 60% of franchise owners identify as entrepreneurs looking to achieve greater independence and financial stability.

Statistic 25

Franchise owners report their primary challenge as labor shortages, affecting roughly 55% of units.

Statistic 26

The average franchise training duration ranges from 4 to 8 weeks, varying by industry.

Statistic 27

The franchise industry contributed approximately $787 billion to the U.S. economy in 2022.

Statistic 28

There are over 773,000 franchise establishments across the United States.

Statistic 29

The franchise industry employs over 8.5 million people in the U.S.

Statistic 30

The franchise industry has seen a 4% growth rate annually over the past decade.

Statistic 31

Over 300 new franchise brands enter the market each year.

Statistic 32

The franchise industry has an annual growth rate of approximately 4% globally.

Statistic 33

Franchise industry employment is projected to grow by 7% over the next five years.

Statistic 34

The fitness and health sector within franchising has grown by over 30% in the past five years.

Statistic 35

The global franchising market is projected to reach $4.3 trillion by 2025.

Statistic 36

The most popular time to buy a franchise is in the third quarter of the year.

Statistic 37

The top five states with the most franchise establishments are California, Texas, Florida, New York, and Illinois.

Statistic 38

Franchise businesses tend to open about 35 new units every day in the U.S., amounting to roughly 13,000 new openings annually.

Statistic 39

International franchise outlets account for roughly 15% of total franchise establishments.

Statistic 40

The geographic distribution of franchises indicates the highest concentration in urban and suburban areas, with rural franchise locations making up about 12%.

Statistic 41

The most common franchise exit strategy is selling to another franchisee or franchisor, accounting for about 65% of exits.

Statistic 42

Franchise brands have expanded their online presence by over 50% in the last three years, utilizing social media and digital marketing.

Statistic 43

The top growth markets for franchise development in 2023 include the Southeast, Southwest, and Pacific Northwest regions.

Statistic 44

Franchise businesses are most likely to expand through franchising agreements, accounting for about 75% of new openings.

Statistic 45

The top three franchise sectors by revenue are Food & Beverage, Business Services, and Personal Services.

Statistic 46

Food service franchises represent nearly 70% of total franchise revenue.

Statistic 47

The fastest-growing franchise sectors include health & fitness, senior care, and home improvement services.

Statistic 48

Franchise industry investments have been increasingly directed toward digital and tech innovations, accounting for approximately 10% of total franchise investments in 2023.

Statistic 49

Technology adoption rates among franchise owners is over 80%, including POS systems, online marketing, and digital payment solutions.

Statistic 50

The 'home-based franchise' model has grown by over 40% in recent years, driven by remote work trends.

Statistic 51

The healthcare franchise sector has doubled in size over the past decade due to aging populations and increased health awareness.

Statistic 52

The franchise industry is increasingly focusing on sustainable and eco-friendly practices, with about 20% of new franchise concepts integrating green initiatives.

Statistic 53

Customer loyalty programs are utilized by over 80% of successful franchise brands.

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Key Highlights

  • The franchise industry contributed approximately $787 billion to the U.S. economy in 2022.
  • There are over 773,000 franchise establishments across the United States.
  • The franchise industry employs over 8.5 million people in the U.S.
  • Around 75% of franchise owners own a single franchise unit.
  • The top three franchise sectors by revenue are Food & Beverage, Business Services, and Personal Services.
  • Franchise businesses tend to have a higher success rate compared to independent startups, with about 90% survival after five years.
  • The average initial investment for a franchise ranges from $150,000 to $250,000, depending on the sector.
  • The franchise industry has seen a 4% growth rate annually over the past decade.
  • Over 300 new franchise brands enter the market each year.
  • Approximately 8% of small business owners in the U.S. operate franchise businesses.
  • Food service franchises represent nearly 70% of total franchise revenue.
  • The average revenue for a franchise unit is about $579,000 annually.
  • Females own approximately 40% of franchise establishments.

Did you know that the U.S. franchise industry pumped nearly $787 billion into the economy in 2022, with over 773,000 establishments fueling a dynamic landscape marked by impressive growth, high success rates, and evolving sectors like health & fitness and sustainable practices?

Financial Metrics and Investment Details

  • The average initial investment for a franchise ranges from $150,000 to $250,000, depending on the sector.
  • The average revenue for a franchise unit is about $579,000 annually.
  • The franchise industry has an average profit margin of about 15-20%.
  • The average franchise licensing fee ranges from $20,000 to $50,000.
  • Franchise companies frequently offer financing options, with about 65% of new franchisees utilizing some form of financial assistance.
  • The return on investment (ROI) for franchise units averages around 20% annually.
  • Franchise units that are part of a broader franchise system tend to perform 30% better than independent counterparts.
  • The franchise industry offers a median initial investment payback period of approximately 2 to 3 years.
  • Franchise companies reported an average franchisee turnover rate of around 15% annually.
  • The average franchise revenue per employee is approximately $250,000.

Financial Metrics and Investment Details Interpretation

While jumping into the franchise world demands a hefty initial investment and licensing fees, with a typical payback in 2-3 years and a solid 20% ROI, it's clear that over 80% of franchisees find the gamble worthwhile—especially since franchise units outperform independents by 30% and generate an impressive $579,000 annually per location, proving that with some financial aid and strategic backing, franchise success is more than just a franchise fantasy.

Franchise Operations and Ownership Demographics

  • Around 75% of franchise owners own a single franchise unit.
  • Franchise businesses tend to have a higher success rate compared to independent startups, with about 90% survival after five years.
  • Approximately 8% of small business owners in the U.S. operate franchise businesses.
  • Females own approximately 40% of franchise establishments.
  • Millennials make up approximately 25% of all franchise owners.
  • Approximately 45% of franchise owners operate multiple units.
  • Franchisees report a 75% satisfaction rate with franchise support and training programs.
  • The average age of a franchise owner is approximately 48 years old.
  • The most prevalent franchise models include business format franchises, product/trademark franchises, and job franchises.
  • Approximately 60% of franchise owners started their business with previous management experience in the same industry.
  • The top reasons for franchise ownership include brand recognition, proven business models, and ongoing support.
  • The median age of franchise startup entrepreneurs is approximately 44 years old.
  • Franchise industry employment is highly female-inclusive, with nearly 50% of franchise businesses having at least onefemale owner or senior manager.
  • Approximately 60% of franchise owners identify as entrepreneurs looking to achieve greater independence and financial stability.
  • Franchise owners report their primary challenge as labor shortages, affecting roughly 55% of units.
  • The average franchise training duration ranges from 4 to 8 weeks, varying by industry.

Franchise Operations and Ownership Demographics Interpretation

With a robust 90% five-year survival rate and nearly half of franchise owners being women or Millennials, the franchise industry proves that proven models, brand recognition, and ongoing support continue to attract a diverse and resilient entrepreneurial community—though labor shortages remain a shared challenge in this thriving landscape.

Industry Size and Growth

  • The franchise industry contributed approximately $787 billion to the U.S. economy in 2022.
  • There are over 773,000 franchise establishments across the United States.
  • The franchise industry employs over 8.5 million people in the U.S.
  • The franchise industry has seen a 4% growth rate annually over the past decade.
  • Over 300 new franchise brands enter the market each year.
  • The franchise industry has an annual growth rate of approximately 4% globally.
  • Franchise industry employment is projected to grow by 7% over the next five years.
  • The fitness and health sector within franchising has grown by over 30% in the past five years.
  • The global franchising market is projected to reach $4.3 trillion by 2025.

Industry Size and Growth Interpretation

With a staggering contribution of nearly $787 billion and over 8.5 million jobs, the franchise industry not only fuels the U.S. economy but is also sprinting ahead globally at a 4% annual growth rate, proving that in franchising, the sky is not the limit—it's the standard.

Market Expansion and Strategic Development

  • The most popular time to buy a franchise is in the third quarter of the year.
  • The top five states with the most franchise establishments are California, Texas, Florida, New York, and Illinois.
  • Franchise businesses tend to open about 35 new units every day in the U.S., amounting to roughly 13,000 new openings annually.
  • International franchise outlets account for roughly 15% of total franchise establishments.
  • The geographic distribution of franchises indicates the highest concentration in urban and suburban areas, with rural franchise locations making up about 12%.
  • The most common franchise exit strategy is selling to another franchisee or franchisor, accounting for about 65% of exits.
  • Franchise brands have expanded their online presence by over 50% in the last three years, utilizing social media and digital marketing.
  • The top growth markets for franchise development in 2023 include the Southeast, Southwest, and Pacific Northwest regions.
  • Franchise businesses are most likely to expand through franchising agreements, accounting for about 75% of new openings.

Market Expansion and Strategic Development Interpretation

With around 13,000 new franchise units launching annually—most in Q3 and concentrated in urban hubs like California and Texas—businesses are increasingly capitalizing on digital expansion and strategic exits, highlighting a dynamic, ever-growing industry where selling to fellow franchisees remains the most common exit route.

Sector-Specific Trends and Performance

  • The top three franchise sectors by revenue are Food & Beverage, Business Services, and Personal Services.
  • Food service franchises represent nearly 70% of total franchise revenue.
  • The fastest-growing franchise sectors include health & fitness, senior care, and home improvement services.
  • Franchise industry investments have been increasingly directed toward digital and tech innovations, accounting for approximately 10% of total franchise investments in 2023.
  • Technology adoption rates among franchise owners is over 80%, including POS systems, online marketing, and digital payment solutions.
  • The 'home-based franchise' model has grown by over 40% in recent years, driven by remote work trends.
  • The healthcare franchise sector has doubled in size over the past decade due to aging populations and increased health awareness.
  • The franchise industry is increasingly focusing on sustainable and eco-friendly practices, with about 20% of new franchise concepts integrating green initiatives.
  • Customer loyalty programs are utilized by over 80% of successful franchise brands.

Sector-Specific Trends and Performance Interpretation

As the franchise industry balances a nearly 70% revenue share from food services with rapid growth in health, home improvement, and tech-enabled models—while embracing sustainability and digital innovation—it's clear that adaptability and innovation remain the recipes for long-term success in this dynamic business landscape.