Franchises are Local, Small Businesses That Give Back to Their Communities

Earlier this year, the International Franchise Association (IFA) released the “Value of Franchising,” a report conducted by Oxford Economics, which highlights how franchised businesses provide better benefits, stronger wage growth, greater business ownership opportunities, and community contributions than non-franchise businesses. The 2026 Value of Franchising report was developed from a survey of nearly 3,000 franchise owners nationwide.

One of the primary topics covered by the report was the impact of franchises on their local communities. There is a frequent misconception that franchise businesses are simply parts of a national big-box brand. It is important to remember these businesses are locally owned, which keeps resources in the local community through supply chains and charitable giving.

Franchisees play an important role in supporting and strengthening local communities. Most franchisees operate as small business owners who live and work in the communities they serve. They support their local economy by hiring residents, purchasing from area supply chains, and generously giving back to their communities through monetary and in-kind donations and volunteering.

Here are some important statistics from the report that highlight the local nature of franchise ownership (source: FRANdata):

• 85 percent of franchisees live and work in the communities they serve.
• 82 percent of franchisees own only one location.
• 83 percent of U.S. franchisees gave to local charities.
• Franchisees purchase an average of 40 percent of goods from other local businesses in their community.

Because franchisees usually operate in areas to which they belong, they possess deep local knowledge that franchisors often lack, and their embeddedness makes them more responsive to community needs. Franchisees resemble small non-franchised businesses, rather than large corporations, when it comes to community investment and giving. Just like any other business, franchisees support public services through the payment of local taxes, including property taxes, which help fund schools, fire departments, and other essential infrastructure.

Franchisees recruit and hire local residents, helping circulate wealth within the community. Hiring local workers and investing in their training not only builds skills but also generates productivity gains and stimulates further growth as employees spend their wages in nearby shops, restaurants, and entertainment venues.

The findings about local ownership in the Value of Franchising report reflect the primary message from the IFA’s recent “Franchise Means Local” campaign, which showcased that franchises are locally owned and operated businesses deeply rooted in their communities.

To learn more about the role franchises play in their local communities and to read the entire report, click HERE.