Franchising is a Proven Path to Business Ownership

Earlier this year, the International Franchise Association (IFA) released the “Value of Franchising,” a report by Oxford Economics, that highlighted 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.

Franchising provides substantial benefits for those new to business ownership. The primary advantage is access to a well-established brand name, which helps build customer trust. Franchisees also receive comprehensive training and ongoing support, covering everything from operations and marketing to customer service, as well as a network of other franchisees experiencing similar goals and challenges.

The survey asked franchisees to describe the areas where franchisor support was received and proved most useful. The largest percentage of responses identified access to a network (65 percent of franchisees found it very important), franchisee training (64 percent), and technology platforms (64 percent). Access to an established network was seen as very important by first-time business owners (67 percent) and women (69 percent). This showcased how franchising can help overcome barriers to business ownership for these groups.

Franchising offers a path into entrepreneurship for operators of every size and scale. As demonstrated by the survey, respondents ranged from single-unit owners (64 percent) to large multi-unit owners (1 percent owning 50+ establishments). They represented a wide range of annual revenue figures, with 43 percent of respondents earning less than $1 million, 41 percent earning between $1 million and $5 million, and 15 percent earning $5 million or more. While establishment size varied, 94 percent of the franchisees surveyed employed fewer than 50 workers.

Here are some important statistics from the report that highlight how franchising is a proven path to business ownership:

• 64 percent of franchisees are first-time business owners.
• 30 percent say they would not own a business at all without franchising.
• Veterans, women, and people of color are represented among franchisees at disproportionately high rates.

Impact on business ownership

With nearly two-thirds of franchisees surveyed being first-time business owners, it suggests that franchising serves as a reliable entry point into entrepreneurship for many prospective business owners. Extrapolating the percentages of businesses that would not exist without franchising (30 percent), the U.S. would have 80,000 fewer businesses and four million fewer jobs.

A diverse group of entrepreneurs

Franchising provides much-needed support to new and small business owners, who often face challenges like insufficient business networks for peer support, investment, and business opportunities, along with the absence of the full range of essential skills needed to operate, service, and grow a business. Evidence suggests minority entrepreneurs often face even greater obstacles to business ownership. Against this backdrop, franchising plays an important role in supporting entrepreneurship for some of these underrepresented groups.

The report showed that franchise businesses are more likely to be minority-owned than non-franchise businesses. Black-owned franchise businesses earned 2.3 times more in sales than Black-owned non-franchise businesses. Veteran-owned franchises reported 2.7 times more in sales than veteran-owned independent businesses.

To learn more about how franchising supports entrepreneurship throughout the country and to read the entire report, click HERE.