The 2026 Franchise Outlook: 77+ Stats That Reveal the Next Big Move in Business

Franchising continues to be one of the most powerful engines driving business growth, job creation, and consumer spending both in the U.S. and around the world.

Franchises are everywhere, from the places we eat and shop to the services we rely on every day.

But behind those familiar brands is an industry that plays a major role in the economy, supporting millions of jobs and creating opportunities for business ownership across communities.

As consumer spending remains strong and more people explore entrepreneurship, franchising continues to grow. 

The statistics in this article break down what’s happening inside the franchise industry right now. 

It covers details on how fast the industry is expanding, where jobs are being created, and why franchising remains one of the most popular paths to owning a business.

Keep reading to find out more about this massive industry. 

Editor’s Pick: Key Franchise Statistics

• The global franchise market is expected to grow from $160.35B in 2026 to $369.84B by 2035, a 9.73% CAGR.
• U.S. franchising output is projected to exceed $936.4B in 2025, driven by lower interest rates and expansion.
• The U.S. had approximately 811,000 franchise locations in 2024, underscoring the sector’s scale.
• Franchise GDP is expected to reach $578B in 2025, growing 5%, well above overall U.S. economic growth (1.9%).
• Franchise employment rose 2.2% in 2024, adding 189,000 jobs and bringing total employment to 8.8M.
• In 2025, franchising is projected to create 210,000 new jobs, continuing steady workforce growth.
• 37% of franchisor executives cite labor availability, quality, and cost as their top business challenges.
• To address labor pressures, 66% of franchisors plan to raise wages and 64% plan to improve efficiency in 2025.
• Franchise businesses account for nearly 6% of U.S. employment and about 9% of all U.S. business establishments.

General Franchise Statistics

1. The global franchise market is estimated at USD 160.35 billion in 2026 and is projected to reach USD 369.84 billion by 2035, growing at a compound annual growth rate of 9.73% over the 2026–2035 period. (source) 

2. Lower interest rates are expected to ease financial pressure on franchise owners by cutting capital costs and encouraging expansion. As a result, FRAN data projects franchising output to surpass $936.4 billion in 2025, growing at a rate of 4.4%. (source) 

3. Personal services and retail food, products, and services are forecasted to lead franchise growth in 2025, rising by 4.3% and 3.5%, respectively, with a combined total surpassing 317,000 units. (source) 

4. Labor availability, quality, and cost are reported as the top business challenge by 37% of franchisor executives. (source) 

5. Inflation, ranked as the third-largest business challenge, is expected to affect 12% of respondents in 2025, up from 9% in 2024. This is still below 2023 levels, when 20% of respondents cited inflation as a concern. (source) 

6. In 2025, 66% of franchisors plan to raise wages, and 64% aim to improve efficiency as part of their strategies to tackle labor challenges. (source) 

7. In 2025, 26% of franchise brands report concerns over labor quality or availability—double the 13% reported in 2024. Meanwhile, concern over labor costs has declined by 10% since 2024 (to 24%), highlighting a shift from cost issues to workforce supply challenges. (source) 

8. In 2024, the U.S. had around 811,000 franchise locations. (source)

9. A significant 86% of franchisees reported feeling the impact of rising costs on their businesses, a slight decrease from the previous year’s figure. (source)

10. There are more than 3,000 different franchise brands available. (source)

11. McDonald’s made $15.4 billion from its franchised restaurants worldwide in 2023. Most of that ($9.84 billion) came from rent, and $5.53 billion came from royalties. (source)

12. The success rate for new franchises after one year is 6.3% higher than that of independent companies. (source)

Franchise Statistics in the U.S.

13. Franchise establishments are projected to expand by more than 20,000 locations, a 2.5% increase, bringing the total to roughly 851,000 units. Declining interest rates since early 2024, combined with growing small business confidence, are expected to fuel new franchise growth in 2025. (source) 

14. In 2024, franchising exceeded expectations for the second year in a row, with establishments growing an estimated 2.4%, above FRANdata’s 1.9% forecast. Strong consumer spending and modest gains in labor availability helped drive this growth. (source) 

15. Franchise GDP is expected to rise 5% to reach $578 billion, outpacing the overall U.S. economy, which is projected to grow 1.9% in 2025. (source) 

16. The Southeast is the largest franchise market, representing about 259,000 units, or 30.4% of the total projected in 2025. The region employs nearly 2.8 million people and generates $283.8 billion in output, with growth expected to reach 6.2%, exceeding the national rate of 4.4%. (source) 

17. The ten fastest-growing states for franchising in 2025, based on establishment growth and total units, are Georgia, North Carolina, Virginia, Arizona, South Carolina, Pennsylvania, Tennessee, Florida, Colorado, and Maryland. Collectively, these states are expected to account for 285,000 units, 3 million jobs, and $311 billion in output that year. (source)

18. The commercial and residential services industry is projected to top 85,000 establishments in 2025, reflecting 2.4% growth from 2024. Employment is expected to increase by 2.7%, reaching roughly 327,000 jobs. (source)

19. FRANdata projects that franchise establishments in the business services sector will grow 1.1% in 2025, fueled by lower interest rates and ongoing entrepreneurial activity. This growth is expected to push total locations past 103,000 and create roughly 11,000 new jobs. Industry output is also anticipated to rise 2.7% year-over-year, reaching $107.9 billion. (source) 

20. Franchise establishments are projected to rise 4.3% to 132,000 locations in 2025, with output increasing 7.5% to $48.7 billion. The sector is also expected to generate over 625,000 jobs that year. (source) 

21. Franchise businesses have grown as key contributors to job creation and economic output, accounting for roughly 9% of all U.S. business establishments and nearly 6% of total employment. (source)  

22. In 2023, McDonald’s led U.S. franchises in global sales, earning roughly $129.5 billion worldwide. 7-Eleven ranked second, with its franchise locations generating nearly $98 billion in global sales. (source)

23. In 2024, the U.S. personal services franchise industry generated about $45 billion, with output projected to reach $49 billion in 2025. After steady growth from $39.3 billion in 2019, the industry dropped to around $26 billion in 2020 due to the COVID-19 pandemic, a 33% decline from the previous year. (source)

24. The US commercial and residential services franchise industry was unaffected by the pandemic, with a steady output growth since 2013, reaching $57 billion in 2023. (source)

25. The US business services franchise industry recovered to pre-pandemic levels in 2024, generating $105 billion. The industry grew 30% from 2013 to 2019, peaking at $106 billion, but declined to $91.3 billion in 2020 due to the pandemic. (source)

26. The food industry was disproportionately affected by inflation, with three of the top five industries most impacted being food-related. (source)

27. Nearly all (90%) franchise business units increased their prices to offset rising costs and maintain profitability. (source)

28. The initial investment to open a Kentucky Fried Chicken (KFC) franchise in the U.S. was approximately $3.7 million, with $1.9 million going towards building and site costs and $100,000 towards permits, licenses, and security deposits. (source)

29. The initial investment to open a Burger King franchise was approximately $4,520,900, with $1.6 million going towards improvements and construction, and $50,000 towards the franchise fee. (source)

30. The initial investment to open a McDonald’s franchise was estimated at $2,503,000, with $1,650,000 going towards signs, seating, and decor. (source)

31. In 2024, franchise establishments in the U.S. generated an estimated $897 billion in economic output. Since 2007, the economic contribution of these franchises has experienced considerable fluctuations. (source)

32. According to the International Franchise Association, the franchise industry experienced significant growth in 2021, opening over 21,000 new locations and creating more than 660,000 additional employment opportunities across the United States. (source)

33. From 2007 to 2024, the number of quick-service restaurant (QSR) franchises in the U.S. generally grew. By 2024, there were an estimated 199,931 QSR franchise locations nationwide. (source)

34. Over 50 million Americans eat fast food daily. That represents 37% of the population. (source) 

35. The rate of U.S. businesses operating as franchises fell by 9.4% between 2014 and 2020, with some metros experiencing declines as high as 63.5%. (source)

36. Franchise businesses contributed US $670 billion to the U.S. economy in 2020, representing 3% of the total nominal GDP. (source)

37. Franchise market growth in the Southeast and Southwest will surpass other regions in the U.S. in 2024, as the top 10 states for franchise growth are Texas, Florida, Georgia, North Carolina, South Carolina, Tennessee, Maryland, Arizona, Colorado, and Virginia. In contrast, California and Washington are expected to see a decline in franchise growth, dropping by 4.2% and 2.3%, respectively. (source)

Franchise Statistics in Other Regions

38. Revenue in Australia’s franchising industry is projected to decline at an annualized rate of 1.2% over the five years to 2024–25, before rising by an estimated 1.7% to reach $201.2 billion. (source) 

39. Australia’s franchising industry comprises 1,234 businesses, with the total number declining at a compound annual growth rate of 0.4% between 2020 and 2025. (source) 

40. The Australian franchising industry’s market size has been shrinking at a compound annual growth rate of 1.2% from 2020 to 2025. (source) 

41. Metcash, Eagers Automotive, and Harvey Norman are the leading companies in Australia’s franchising industry. (source) 

42. More than half of UK investors (54%) reported plans to invest between £20,000 and £100,000, similar to last year, while 3% indicated budgets exceeding £1 million, reflecting steady involvement from high-net-worth individuals. (source) 

43. Finding the right franchise opportunity was the main barrier for 51% of UK investors, while 33% were concerned about the economy and 27% cited funding access as obstacles to investment. (source) 

44. UK fast-food franchise industry revenue is expected to grow from £13.1 billion to £12.7 billion by 2024-25, with a 3.8% increase in the final year. (source)

45. Canada’s franchising GDP grew from $100 billion in 2019 to $120 billion in 2024. Canada’s franchise industry is the 12th largest sector in the country and the second largest globally, contributing significantly to the nation’s economy. (source)

46. Franchised businesses in Australia are heavily concentrated in New South Wales, Victoria, and Queensland. (source)

47. Lockdowns, trading restrictions, and social distancing measures since March 2020 have posed many challenges for franchised businesses in Australia. (source)

48. Market share concentration in the Australian franchising industry is low, with the top four companies generating 32% of market revenue in 2024. (source)

49. The non-food retail sector is the most sought-after for franchising in Australia, comprising over 25% of all franchise systems. (source)

50. Australia has 1,344 franchise systems with approximately 98,000 units, generating $184 billion in revenue and employing over 598,000 people. (source)

51. 60% of franchisors in Australia have been franchising for over 10 years. (source)

52. 92% of franchise systems are locally owned and operated in Australia, with the majority being homegrown Australian businesses that have been franchising for an average of nine years. (source)

53. 28% of Australian franchise systems had expanded to an international level. (source) 

54. Based on volume, Nigeria’s top franchises are the fast-food and Quick Service Restaurants operators, accounting for 45% of the franchises. (source)

55. Australia’s franchise sector plays a significant role in the country’s economy, with 95% of franchisors and almost all franchisees being small businesses with fewer than 20 employees. The sector’s stability is evident in the fact that nearly 300 franchise systems have operated for over 20 years, while 30% of franchisees have been in their business for 5-10 years and 40% for more than 10 years. (source)

56. Women play a significant role in Australia’s franchise industry, owning around 34% of franchises and holding many leadership positions, generating a substantial $6 million annual contribution to the economy. (source) 

57. In Australia, women-owned franchises drive growth, outpacing the overall sector with an impressive 7.8% average annual growth rate, significantly higher than the industry average. (source)

58. Australia’s franchise industry shrunk to $185.1 billion in 2024, down 2.4% annually over 5 years. (source)

59. China has over 4,000 franchise brands and 500,000 franchise outlets. (source)

60. In 2023, approximately 211,131 people were employed by convenience store franchises in South Korea. Overall, more than one million South Koreans worked across all franchise establishments that year. (source) 

61. South Korea’s franchise industry grew 10.6% in 2021, with 259,662 stores driven partly by increased demand for foreign food. The combined franchise stores’ revenue rose 14.2% to 84.8 trillion won (or $66.5 billion USD). (source)

62. The typical initial investment for a franchise in Singapore ranges from S$30,000 to S$150,000. (source)

63. South Africa has over 68,463 franchisees (a 43% increase from 2019) and 727 franchise systems. (source)

64. Franchising in South Africa generated an estimated R999 billion in turnover in 2023. This represents a 36% increase from 2019, accounting for 15% of South Africa’s GDP. (source)

65. Africa’s franchising finance market is valued at $93.9 billion, with available funding totaling $37.6 billion, leaving a financing gap of $7.51 billion. (source)

Franchise Employment Statistics

66. Franchise employment rose by 2.2% in 2024, creating over 189,000 new jobs and pushing total employment to 8.8 million. Output grew by 3.9%, closely matching FRANdata’s projected 4.1%, with growth supported by strong consumer demand and wider use of AI to improve operational efficiency. (source) 

67. In 2025, franchising is projected to create around 210,000 new jobs, reflecting a 2.4% growth rate. While filling labor needs is easier than in past years, labor costs continue to be a concern for both franchisors and franchisees. (source)

68. In 2025, 70% of franchisors report unfilled job vacancies among their franchisees, a decrease from 80% in 2024. (source)

69. Nearly half of franchisor executives (48%) anticipate an increase in total franchisee employment over the coming year, while 40% expect it to remain unchanged. (source)

70. In 2025, QSR franchises are expected to employ over 4 million people, representing a large share of the franchise workforce. Other major franchise employers include retail with 1.2 million workers, full-service restaurants with 1.1 million, and lodging with 728,000 employees. 

71. Franchises in South Carolina are projected to employ 8.8% of the state’s workforce in 2025, the highest rate in the country and significantly above the national average of 5.8%. (source)

72. In 2024, approximately 8.66 million people worked in U.S. franchise businesses. After steady growth from 2013 to 2019, employment dropped to around 7.5 million in 2020, but the industry has since recovered, with 2025 expected to set new records. (source)

73. US business services franchise employment grew steadily from 2013 to 2019 (650,000), declined in 2020 (588,000) due to the pandemic, and slowly recovered in 2023 (adding an extra 34,000 jobs). (source)

74. 80% of respondents reported struggling with staffing shortages, with unfilled job vacancies impacting their franchises. (source)

75. Labor costs and quality remain a top challenge for 34% of franchise businesses, down from 47% in 2023. (source)

76. Franchise employment declined by 11.2% to 7.5 million in 2020, losing approximately 940,000 jobs due to limited capacity and revenue deterioration. (source) 

77. Franchises create 2.3 times more jobs than non-franchise businesses of similar size. Also, franchises generate 1.8 times more taxable revenue than independent businesses. (source)

78. Employees of franchise businesses earn up to 3.4% more and have better access to health insurance (65%) and paid leave (76%). (source)

79. The U.S. Census Bureau reports that franchise businesses recently made up over 11% of all businesses with paid employees across 295 industries. (source)

FAQs

Conclusion

With its widespread presence, economic impact, and employment opportunities, franchising is a vital part of the business landscape. 

Whether you’re an entrepreneur, investor, or consumer, understanding these franchise statistics can help you make informed decisions and appreciate the significance of this interesting industry.