10 Surprising Facts About The Franchise Industry in 2024

The franchising industry is a dynamic and influential sector of the global economy — creating jobs and providing valuable services. Like every industry, it has its perks and challenges. Here are 10 facts and franchise industry trends that might surprise even the most seasoned franchise aficionado.

Beyond Fast Food

When people hear “franchise,” they often think “fast food,” but the franchise sector spans a wide range of over 300 business categories, including technology, health and education.

But Food Still Rules 

Quick service restaurants make up nearly half of all franchise employment in the U.S. while full-service restaurants make up about 13%.

Economic Powerhouse 

In the U.S. alone, the franchise industry’s economic impact was projected to increase to $860.1 billion in 2023, up from $825.4 billion in 2022??. The International Franchise Association will likely release its 2024 forecast in April. In the meantime, check out our list of the best emerging franchise brands to invest in.

Job Creation Engine 

The franchise industry continues to see year-over-year employment growth, and currently supports more than 8 million jobs.

Success in Diversity 

The franchise industry has been focusing on increasing diversity among its owners, with initiatives to encourage more women and minority entrepreneurs to become franchisees. Black-owned franchises bring in more than twice the revenue of Black-owned independent startups, while Hispanic-owned franchises see nearly double the sales of Hispanic-owned independent companies.

A Big Opportunity for Veterans

Veterans have a major presence in the franchisee world, making up 14% of franchise owners compared to 7% of the U.S. population. Organizations from the U.S. Department of Veterans Affairs to the International Franchise Association have programs designed to support veterans in the industry. 

Meet some veterans who’ve opened up their own franchises, and find out why veteran franchise ownership is often a great option through our coverage at 1851 Franchise.

Global Reach and Support

The franchise model has seen global expansion, with significant growth in emerging markets such as China, Brazil and India.

As franchising goes global, franchise associations around the world advocate for the industry, provide resources and set ethical standards. The International Franchise Association (IFA) in the U.S., the British Franchise Association, the China Chain Store & Franchise Association, the Franchise Council of Australia and the Canadian Franchise Association are just a few examples.

And if you’re just in the mood for some international cuisine, here are some great franchise restaurants to check out!

Still, the U.S. Reigns Supreme When It Comes to Franchise HQs

Nine out of the 10 top franchises worldwide are headquartered in the U.S., according to Entrepreneur’s rankings. The exception? Japanese educational network Kumon, which also happens to be one of only two nonfood franchises that made the list along with Hampton by Hilton (HQ: McLean, Virginia, in the Washington, D.C., suburbs).

The State Where Franchise Owners Earn the Most? Not Where You Might Expect

The Last Frontier state might be the first state you want to look at when opening a franchise. A franchisee in Alaska, on average, earns 7.8% more than the national average salary — $138,007 versus $127,973 — according to ZipRecruiter.

Most U.S. Pro Sports Teams Are Literally Franchises

They don’t just call your favorite NBA, NHL or NFL team a “franchise.” It likely is a franchise. Each team operates as an independent business under the umbrella of the league, with its own management and business operations. The concept of franchises in these leagues is not just limited to the business side but extends to aspects such as team formation, historical development and league expansions. 

Athletes get in on the franchise game too: Former NFL star quarterback Peyton Manning once owned 31 Papa Johns stores; and former NBA hero (and current all-around superstar) Shaquille O’Neal owns over 100 restaurants, 150 car washes, 40 gyms and a movie theater.

The franchise industry in 2024 stands out for its diversity, innovation and significant economic contributions. It's a sector marked by adaptability and global influence, making it a critical component of the world economy. If you’re looking to buy your first franchise or build out your portfolio, 1851 Growth Club is here to guide you through the buying process with honesty and integrity. Contact us today to take the next step that’s right for you.