Economic Impact | 21 Sep 2021
The value of franchising
The franchise business model plays an important role within the U.S. economy. Prior to the pandemic, in 2019, the economic output of franchise establishments in the United States was about $787.5 billion and represented 3% of the country’s GDP. Most people immediately associate franchising with fast food restaurants. However, quick service restaurants are just a fraction of the entire sector, making up only a fourth of all franchised establishments, less than half of the workers, and just over a third of the economic output.
Beyond their economic contribution, we find that franchises offer pay, benefits, and training on par with comparable non-franchise small businesses. In addition, 32% of franchisees report they would not own a business if they were not franchisees. Lastly, we highlight how franchisees are embedded in their local communities through their local supply chains and charitable giving.
Our economic consulting team are world leaders in quantitative economic analysis, working with clients around the globe and across sectors to build models, forecast markets and evaluate interventions using state-of-the art techniques.
To find out more about our capabilities, contact:
EMEA
Sam Moore
+44 (0)207 803 1415
Email
Americas
Jeffrey Klonoski
+1 646 503 3048
Email
Asia
Rhianne Clark
+65 6850 0112
Email
Related Services
Post
Impacts of the proposed Los Angeles fast food ordinance
Save Local Restaurants commissioned Oxford Economics to calculate high-level cost estimates relating to a proposed city ordinance that would impose new requirements on quick-service restaurant operators in Los Angeles.
Find Out More
Post
Catalyzing Africa’s Sustainable Transition: Insights to Impact a Climate-Resilient Future
Sustainable finance is not merely a climate imperative but a development necessity. As climate risks intensify, Africa must urgently mobilise capital to advance its adaptation, mitigation, and development goals. Realising this ambition will require coordinated action across governments, financial institutions, international partners, multilateral agencies, and the private sector. With bold leadership, innovative tools, and supportive ecosystems, the continent can chart a path toward a more inclusive, resilient, and sustainable global economy.
Find Out More
Post
Global P&C Insurance Outlook to 2050
Capgemini leveraged custom macro and insurance market forecasts from Oxford Economics for their latest P&C insurance flagship report.
Find Out More