Census Bureau Reports Impact of Franchise Businesses on Economy

Census Bureau Reports Impact of Franchise Businesses on Economy

Census Bureau Reports Impact of Franchise Businesses on Economy

The U.S. Census Bureau is reporting that franchise businesses account for 10.5 percent of businesses with paid employees from the 295 different industries that franchising data was collected from in 2007.  4.3 million establishments were surveyed in 2007 and the report found that 453,326 were either franchisee or franchisor-owned.

The report also found that franchise businesses were responsible for nearly $1.3 trillion of the $7.7 trillion in sales for the industries surveyed, $153.7 billion of $1.6 trillion in payroll, and 7.9 million workers from a total of 59.0 million workers in all surveyed industries.

The 2007 Economic Census Franchise Report was the first comprehensive and detailed report the Census Bureau has ever produced on the franchised segment of the U.S. economy.  The report was a result of the Census Bureau collaborating with the International Franchise Association in order to get a better picture of the impact that franchise run businesses have on the economy.  Previous Census reports only asked a question about franchising for two industries, limited-service and full-service restaurants.

The report systematically breaks down each of the franchise industries that responded by categorizing each industry into three divisions: franchisor-owned, franchisee-owned, and all businesses.  When looking at all franchised businesses, 77.4 percent of establishments were franchisee-owned and accounted for $1.1 trillion in sales, $125.1 billion in yearly payroll, and employed nearly 6.3 million people.  Franchisor-owned businesses were responsible for the remaining 22.6 percent of the industry while accounting for $210.4 billion in sales, $28.6 billion in payroll, and 1.6 million workers.


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