National Overview

Direct Contributions to the U.S. Economy

• There were 828,138 franchised business establishments in the United States in 2007.

• Franchised businesses provided 9,125,700 jobs, or 6.2 percent of the U.S. private nonfarm workforce in 2007.

• Franchised businesses supplied an annual payroll of $304.4 billion, or 4.2 percent of all private nonfarm payrolls in the United States in 2007.

• Franchised businesses produced goods and services worth $802.2 billion, or 3.4 percent of private nonfarm output in the United States in 2007.

• Franchised businesses contributed $468.5 billion to GDP, or 3.9 percent of all private nonfarm GDP in the United States in 2007.

• We include in “franchised businesses” all those establishments that are part of a franchise system – those businesses owned by franchisees and those owned by franchisors.

Total Contributions to the U.S. Economy

• Franchised businesses demand products and services from other businesses and provide income to their workers and owners, who then spend their income and create still more income for other parties. As this cycle repeats, the jobs, payroll, output, and contribution to GDP that exist because of franchised businesses grow beyond the jobs, payroll output, and contribution to GDP that are in franchised businesses alone.

• Franchised businesses were the cause of over 17 million jobs, or 11.8 percent of all U.S. private nonfarm employment in 2007.

• Franchised businesses were the cause of $707.6 billion of annual payrolls, or 9.7 percent of all private nonfarm payrolls in the United States in 2007.

• Franchised businesses were the cause of $2.1 trillion of annual output, or 9.0 percent of all private nonfarm output in the United States in 2007.

• Franchised businesses were the cause of $1.2 trillion in GDP, or 9.7 percent of all private nonfarm GDP in the United States in 2007.