Key Franchise Performance Statistics

The headline numbers, drawn from the International Franchise Association, FRANdata, the U.S. Census Bureau, and primary franchisee surveys.

1. U.S. franchise establishments are projected to reach 845,000 in 2026, up from 832,521 in 2025 (an increase of 1.5%). (Source: International Franchise Association / FRANdata, 2026 Franchising Economic Outlook)
2. Franchise economic output is expected to rise 1.6% to $921.4 billion in 2026. (Source: International Franchise Association / FRANdata, 2026)
3. Franchising’s contribution to U.S. GDP is projected at $558.4 billion in 2026 — nearly 3% of total U.S. GDP. (Source: International Franchise Association / FRANdata, 2026)
4. Franchise employment is anticipated to reach nearly 8.9 million jobs in 2026, an increase of more than 150,000 jobs (1.8%). (Source: International Franchise Association / FRANdata, 2026)
5. FRANdata tracks approximately 9,000 U.S. franchise brands across all 50 states and Washington, D.C. (Source: FRANdata, 2026)
6. The median franchise royalty fee is 5.00% of gross sales, with fees ranging from 3% to 13% across industries. (Source: FRANdata / BizBuySell, 2024)
7. 46% of franchisees report gross sales over $1 million, and 26% report sales over $2 million. (Source: Franchise Business Review, 2025)
8. Multi-unit operators control 54% of all franchised units in the U.S. (Source: FRANdata, 2019)
9. 86% of franchisees say they would recommend their franchise to others. (Source: Franchise Business Review, 2026)
10. Quick-service restaurant franchises are expected to account for $322 billion in economic output in 2025 — more than a third of all U.S. franchising. (Source: International Franchise Association, 2025)

Industry Size & Growth

How large U.S. franchising is today and how fast it is expanding relative to the broader economy.

1. The number of U.S. franchise establishments was forecast to grow 2.5% to 851,000 units in 2025, an increase of more than 20,000 units (later revised to 832,521 in the 2026 Outlook). (Source: International Franchise Association / FRANdata, 2025)
2. Franchise GDP was projected to increase 5% to $578 billion in 2025. (Source: International Franchise Association / FRANdata, 2025)
3. Franchising was expected to add approximately 210,000 jobs in 2025 (a 2.4% increase), bringing total franchise employment to more than 9 million. (Source: International Franchise Association / FRANdata, 2025)
4. In 2024, franchising added more than 189,000 jobs (employment growth of 2.2%) and franchise output reached $896.9 billion. (Source: International Franchise Association / FRANdata, 2025)
5. In 2025, franchising was projected to grow faster than the overall U.S. economy, which the Congressional Budget Office projected would increase 1.9%. (Source: International Franchise Association / FRANdata, 2025; Congressional Budget Office)
6. The 2017 Economic Census counted 498,234 franchise establishments in the United States. (Source: U.S. Census Bureau, 2017 Economic Census)
7. Those franchise establishments generated $1.7 trillion in sales and employed 9.6 million of the 63.3 million workers in the industries covered. (Source: U.S. Census Bureau, 2017 Economic Census)
8. Franchises made up 11.4% of all businesses in the industries covered, with nearly 300 industries offering franchise opportunities. (Source: U.S. Census Bureau, 2017 Economic Census)

Unit Economics & Costs

What franchisees pay, earn, and keep — royalty fees, startup-cost structure, and revenue distribution.

1. The median franchise royalty fee is 5.00% of gross sales, with fees ranging from 3% to 13% across industries. (Source: FRANdata / BizBuySell, 2024)
2. The retail-stores industry has a median minimum royalty fee of 3.21%, while business-related franchises average 13.88% and automotive franchises 9.36%. (Source: FRANdata / BizBuySell, 2024)
3. Among emerging franchisors (under 100 units), the cost of non-brand-specific services needed to get a franchisee open averaged 73% of initial franchise-fee revenue, ranging from 40% to 81%. (Source: FRANdata, 2024)
4. Providing training to a new franchisee costs emerging franchisors an average of 19% of the initial franchise fee. (Source: FRANdata, 2024)
5. 46% of franchisees report business revenue over $1 million, and 26% report revenue over $2 million. (Source: Franchise Business Review, 2025)
6. 85% of franchisees say they enjoy operating their business, and 53% are considering buying additional units (based on a survey of more than 35,000 franchisees). (Source: Franchise Business Review, 2025)

Royalty benchmarks: FRANdata / BizBuySell, 2024.

Survival & Failure Rates

How long new establishments last, and how franchise-backed loans actually perform. Survival figures below are U.S. Bureau of Labor Statistics data for all new private-sector establishments — the best available government longitudinal benchmark; the BLS does not publish a franchise-only cut.

1. Between 2010 and 2021, SBA 7(a) loans to franchisees defaulted at an average rate of 9.9% across all franchise brands with at least 25 loans. (Source: ROI Advisers, analysis of SBA 7(a) data, 2022)
2. The 20 most-funded franchise brands had a combined SBA 7(a) loan default rate of just 4.3% from 2010 to 2021 — well below the franchise-wide average. (Source: ROI Advisers, analysis of SBA 7(a) data, 2022)
3. 77.9% of new private-sector establishments that opened in the year ended March 2024 survived their first year. (Source: U.S. Bureau of Labor Statistics, Business Employment Dynamics, 2025)
4. Of establishments that opened in the year ended March 2021, 67.0% survived to year three and 59.1% survived to year four. (Source: U.S. Bureau of Labor Statistics, Business Employment Dynamics, 2024)
5. 51.5% of new private-sector establishments that opened in the year ended March 2019 were still operating five years later, in March 2024. (Source: U.S. Bureau of Labor Statistics, Business Employment Dynamics, 2024)
6. By their tenth year, only about 27% of new private-sector establishments remain in operation. (Source: U.S. Bureau of Labor Statistics, Business Employment Dynamics, 2025)

Multi-Unit & Territory Performance

Multi-unit ownership is where franchise scaling happens. The most recent publicly verifiable FRANdata aggregates are labeled by year below.

1. The average multi-unit franchisee owns 5 franchised locations, up from about 4.8 in 2011 — a rate of change of roughly 1% per year. (Source: FRANdata, 2019)
2. 9% of multi-unit operators (about 3,900) operate units across several different brands. (Source: FRANdata, 2019)
3. The number of large multi-unit operators (50+ units) grew 118.52% from 2010 to 2018, versus 25.39% growth across all multi-unit operators. (Source: FRANdata, 2018)
4. 43% of IFA/FRANdata survey respondents are multi-unit franchisees, while 57% are single-unit owners. (Source: IFA / FRANdata Annual Franchisee Report, 2024)

KPIs & Operating Benchmarks

Disclosure practices, franchisee satisfaction, cost pressures, and restaurant-operations benchmarks franchise operators measure against.

1. 86% of franchisors include a Financial Performance Representation (Item 19) in their FDD — of those, 94% disclose revenue, 56% expenses, and 53% profitability. (Source: Annual Franchise Development Report, Franchise Update Media, 2024)
2. 86% of franchisees would recommend their franchise; 82% enjoy operating their business and 85% enjoy being part of their franchise organization. (Source: Franchise Business Review, 2026)
3. Owner satisfaction among the Top 200 Franchises averages 30% higher than other brands (based on 26,000 franchisees across 330 brands). (Source: Franchise Business Review, 2026)
4. 80% of franchisees experienced lower business earnings over the past year, and 86% raised prices to combat cost increases. (Source: IFA / FRANdata Annual Franchisee Report, 2024)
5. 87% of franchisees report a moderate-to-substantial impact from inflationary pressures, and 65% expect costs to increase further. (Source: IFA / FRANdata Annual Franchisee Report, 2024)
6. For limited-service (QSR) restaurants, salaries and wages represented a median of 31.7% of sales in 2024 — 30.0% for profitable operators versus 34.1% for those reporting losses. (Source: National Restaurant Association, Restaurant Operations Data Abstract, 2024)
7. For full-service restaurants, labor costs were a median of 36.5% of sales in 2024 — 34.2% for profitable operators versus 42.9% for those reporting losses. (Source: National Restaurant Association, Restaurant Operations Data Abstract, 2024)
8. Sales at the Top 500 U.S. chain restaurants grew just 3% in 2024 to $437 billion, with 55% of chains falling short of the 4% foodservice inflation rate. (Source: Technomic Top 500 Chain Restaurant Report, 2024)

Food, Beverage & QSR Franchising

Quick-service restaurants drive franchising, and better-for-you food and beverage is its fastest-growing consumer story.

1. The number of fast-food (QSR) franchise establishments is expected to grow 2.2% to 204,366 in 2025. (Source: International Franchise Association, 2025)
2. Employment at fast-food restaurants accounts for 45% of the franchise workforce and is expected to top 4 million in 2025, up 2.6%. (Source: International Franchise Association, 2025)
3. The U.S. restaurant industry surpassed $1 trillion in sales for the first time ever in 2024. (Source: National Restaurant Association, 2024)
4. The U.S. restaurant and foodservice industry is projected to reach $1.5 trillion in sales in 2025 and employ 15.9 million people. (Source: National Restaurant Association, 2025)
5. The U.S. fast food and quick-service market was valued at $254.11 billion in 2024 and is projected to grow at a 3.4% CAGR to $311.99 billion by 2030. (Source: Grand View Research, 2024)
6. The U.S. smoothies market generated $5.07 billion in revenue in 2023 and is expected to reach $8.18 billion by 2030, growing at a 7.1% CAGR. (Source: Grand View Research, 2023)
7. The global smoothies market was estimated at $12.46 billion in 2023 and is projected to reach $23.08 billion by 2030, a 9.3% CAGR. (Source: Grand View Research, 2023)
8. The global acai berry market was estimated at $1.49 billion in 2024 and is projected to reach $2.22 billion by 2030, a 6.9% CAGR. (Source: Grand View Research, 2024)
9. The global cold-pressed juice market was estimated at $790.1 million in 2023 and is projected to reach $1.26 billion by 2030, a 6.9% CAGR. (Source: Grand View Research, 2023)
10. The global functional drinks market was valued at $164.68 billion in 2025 and is projected to reach $315.89 billion by 2033 (8.5% CAGR), with North America holding the largest share at 34.94%. (Source: Grand View Research, 2025)
11. The global wellness market is estimated at $1.8 trillion in 2024, with the U.S. wellness market near $480 billion and growing 5–10% per year. (Source: McKinsey & Company, 2024)
12. 82% of U.S. consumers consider wellness a top or important priority in their everyday lives. (Source: McKinsey & Company, 2024)

2026 Outlook

What the franchise sector is expected to do in 2026, per the IFA/FRANdata Franchising Economic Outlook.

1. U.S. franchise establishments are projected to grow 1.5% to 845,000 units in 2026. (Source: International Franchise Association / FRANdata, 2026)
2. More than 12,000 new franchised businesses are projected to launch in 2026. (Source: International Franchise Association / FRANdata, 2026)
3. Franchise economic output is expected to rise 1.6% to $921.4 billion in 2026. (Source: International Franchise Association / FRANdata, 2026)
4. Franchising’s contribution to U.S. GDP is projected to grow 1.8% to $558.4 billion in 2026 — nearly 3% of total U.S. GDP. (Source: International Franchise Association / FRANdata, 2026)
5. Franchise employment is anticipated to increase by more than 150,000 jobs (1.8%) to nearly 8.9 million in 2026. (Source: International Franchise Association / FRANdata, 2026)

Sources

Every statistic above is attributed to one of the following organizations and the year of the underlying report:

1. International Franchise Association
2. FRANdata
3. U.S. Census Bureau
4. U.S. Bureau of Labor Statistics
5. ROI Advisers (SBA 7(a) data)
6. BizBuySell
7. Franchise Business Review
8. Annual Franchise Development Report (Franchise Update Media)
9. National Restaurant Association
10. Technomic
11. Grand View Research
12. McKinsey & Company
13. Congressional Budget Office

Methodology & notes: Figures are quoted as published by each named source and labeled by report year. Where the IFA/FRANdata Outlook revised a prior-year projection (e.g., 2025 establishments), both the original projection and the revised figure are shown. Business-survival rates are U.S. BLS Business Employment Dynamics data for all private-sector establishments — the strongest available longitudinal government benchmark — and are not franchise-specific. Market-sizing estimates from research firms vary by category definition; each is attributed to the specific firm and report.