The International Franchise Association (IFA) released a groundbreaking new report, The Value of Franchising, highlighting how franchised businesses deliver stronger wage growth, better benefits, expanded business ownership opportunities, and meaningful contributions to local communities compared to non-franchise businesses.
Conducted by Oxford Economics, the study draws on a 2025 survey of thousands of franchisees, along with an analysis of payroll data provided by Paychex.
The findings confirm what those within franchising know firsthand. The franchise business model is powered by small business owners across hundreds of industries who are deeply invested in their employees, their customers, and the communities they serve.
Importantly, the report provides clear, data-backed evidence that challenges the misconception that franchising is “big business.” Instead, it shows that franchise businesses are locally owned, community-rooted, and often stronger and more generous employers.
Some findings from the report include:
Community Impact
- 85% of franchisees live and work in the communities they serve
- 83% of U.S. franchisees donated to local charities in the past year
- Most franchisees purchase a portion of their goods from other local businesses
Franchising Is Local Small Business
- 82% of franchisees own one single unit
- 47% of franchised brands operate 25 units or fewer
- Franchisees purchase an average of 40% of their goods from local businesses in their communities
Stronger Jobs and Career Growth
- Wages grow faster over time at franchised businesses compared to non-franchised businesses
- Franchise employees are more likely to receive key benefits
- Part-time franchise employees are more like to transition into full-time roles
A Proven Path to Business Ownership
- 64% of franchisees are first-time business owners
- Veterans, women, and people of colour are represented among franchisees at disproportionately higher rates
Together, these findings reinforce the value of the franchise business model in delivering better jobs, expanding access to entrepreneurship, and strengthening communities across the country.
Explore the findings and help share the value of franchising.
This IFA report focuses on data collected from the U.S., but demonstrates the importance and value of the franchising industry in communities world-wide. To gain more insight on the Canadian franchising industry specifically, check out the CFA’s annual Franchise Forecast and stay tuned for the Trends Issue of Franchise Canada magazine, going live this January.