Overview of Franchising in the U.S. Economy.

Franchising is one of the most important business models in the United States — spanning food service, retail, personal services, hospitality, automotive, and other sectors. Unlike independent companies, franchises consist of:

• Franchise givers (franchisors) — the companies that own the brand and system;

• Franchisees — independent business owners who operate individual units under a licensing agreement.

This model allows for rapid national and global expansion while sharing risk between the franchisor and franchisee — and its economic footprint is massive.

Scale and Output

• In 2025, the U.S. franchising sector — taken as a whole — is projected to generate over $936 billion in total economic output (“franchise output”), a figure that represents the combined sales of franchise units and their contribution to the economy.

• Franchise GDP — the value added by franchised businesses — is expected to reach about $578 billion.

• There are over 850,000 franchise establishments (units) in the U.S. as of 2025, with steady year-on-year growth.

Franchising often grows faster than the broader U.S. economy, which is typically expanding at around 1.9–2% per year.

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2. Major U.S. Franchise Givers and Their Turnover

While franchising includes thousands of brands, a handful of major players dominate turnover (annual revenue/sales) — particularly in quick-service restaurants (QSR), which are a core sub-sector of franchising.

McDonald’s

• McDonald’s is by far the largest franchise system globally and in the U.S. Most (around 93%) of McDonald’s outlets worldwide are operated by franchisees rather than corporate stores.

• Global franchise sales for McDonald’s are near $120 billion annually, with the U.S. market accounting for a large share of that.

Even though McDonald’s publicly reports corporate revenue separately, the franchise turnover figure (i.e., systemwide sales) is an important indicator of the economic activity tied to that franchise system.

Inspire Brands

• Inspire Brands is a major American franchise company that owns multiple large chains including Arby’s, Dunkin’, Buffalo Wild Wings, Sonic Drive-In, Jimmy John’s, and Baskin-Robbins.

• Its combined system sales were about $32.6 billion in 2024 across roughly 33,000 franchise locations.

While Inspire’s total is smaller than McDonald’s systemwide revenue, it remains one of the largest multi-brand franchise systems in the U.S. and generates substantial yearly turnover.

Other High-Volume Franchises

Other traditionally high-turnover U.S. franchise givers include:

• Chick-fil-A — a major chain with high average per-unit sales (millions per restaurant annually) often outpacing competitors in sales per location.

• Jersey Mike’s, Taco Bell, Subway, Domino’s, Popeyes, Wendy’s, and Dunkin’ — each generate billions of dollars in annual systemwide revenue (often in the $2 billion+ range).

• The International Franchise Association’s Franchise 500 list shows a range of leading franchise givers across sectors, indicating the scale and diversity of franchise turnover.

These brands reflect a mix of fast food, retail, services, and lodging franchises, each contributing to the total economic output and turnover of the system.

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3. Franchise Turnover vs. Economic Output

It’s important to distinguish between:

• Individual brand revenue (turnover) — the sales generated by specific franchisors like McDonald’s or Inspire Brands; and

• Total franchise sector output — the combined sales of all franchised units across industries.

Together, these figures illustrate the scale of franchising’s contribution to the U.S. economy.

• The combined output of music, retail, services, hospitality, and food service franchises approaches $900 billion+ annually.

• Quick-service restaurant franchises alone contribute a significant share of that total.

This makes franchising a major pillar of the U.S. private-sector economy — rivaling entire industry sectors in output value.

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4. Impact on the U.S. Job Market

One of the most significant contributions of franchising is its impact on employment, often in local communities across the country.

Direct Employment

• Franchised businesses directly employ over 9 million workers in the U.S. as of 2025.

• This includes both full-time and part-time jobs across restaurants, retail stores, personal services, hospitality, and more.

In many regions, franchises are among the largest employers, especially for younger workers and first-time job holders. Franchising creates jobs faster than the overall job market average.

Job Growth Trends

• The franchise sector is projected to add approximately 210,000 jobs in 2025, continuing its steady expansion.

• Franchise job growth — around 2.4% annually — often outpaces the broader U.S. employment growth, reflecting strong demand for services like food, retail, childcare, fitness, and personal care.

• In many states, franchise expansion drives a significant share of total job growth. In some smaller states, franchise growth can account for over half of all new jobs.

Types of Jobs Created

Franchised businesses support a wide range of roles:

• Entry-level service positions (cashiers, cooks, servers)

• Mid-level management (store managers, shift supervisors)

• Skilled positions (technicians in home services, healthcare, and logistics)

• Professional support roles (regional managers, corporate franchisor personnel)

In sectors such as personal services (fitness, childcare, salons), job creation is increasingly strong and sometimes faster than in food service franchises.

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5. Franchise Jobs vs. Broader Labor Market Trends

Franchising provides stable employment opportunities relative to many independent small businesses for several reasons:

1. Established Brand Support — Franchise jobs have stronger training systems, career-path programs, and standardized operations.

2. Benefits and Growth — Franchise employees are more likely to receive benefits such as health insurance and paid leave compared to non-franchise equivalents.

3. Promotion Pathways — Many franchise employees advance from entry-level to management roles, contributing to workforce mobility.

All of these elements collectively contribute to the franchise sector’s role as a reliable engine of job growth and economic resilience.

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6. Broader Community and Economic Impacts

Franchises don’t just create jobs and turnover — they also:

• Support local supply chains by purchasing goods and services from local vendors;

• Offer entrepreneurship opportunities for individuals who might not otherwise start a business;

• Increase charitable and community involvement through owner philanthropy and local engagement.

Franchise ownership continues to expand wealth creation and entrepreneurial access for diverse populations, including veterans, women, and minorities.

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Conclusion

The franchise model — led by major American franchisors like McDonald’s, Inspire Brands, and hundreds of others — is an economic powerhouse:

• It generates hundreds of billions of dollars in annual output and turnover both at the individual brand level and collectively across the economy.

• Franchised businesses support more than 9 million jobs, adding hundreds of thousands of jobs each year and fueling local economies.

• The model creates scalable opportunities for owners and workers alike, often providing stronger wages and benefits compared with non-franchise small businesses.

Overall, American franchise givers are central to U.S. economic vitality — driving revenue, employment growth, entrepreneurial opportunity, and deep community engagement.