A landmark new report from Oxford Economics confirms what we’ve known all along: franchising isn’t just a business model it’s an engine of opportunity.

At We Sell Restaurants, we spend every day working with entrepreneurs evaluating the leap into franchise ownership and with brands looking to grow strategically through the franchise model. The question we hear constantly is some version of: does franchising actually work? Now, a definitive answer has arrived. The January 2026 Oxford Economics report, The Value of Franchising, commissioned by the International Franchise Association Foundation, delivers the most comprehensive data yet on what franchising means to workers, entrepreneurs, and local communities. And the findings are remarkable.

Here’s what the research found and why it matters to anyone considering a franchise in the restaurant space.

Franchising Is Bigger Than You Think

Most people think of franchising and picture fast-food chains. But quick-service restaurants represent only about a quarter of the 830,000+ franchise establishments operating across the U.S. in 2024. The franchise universe spans business services, personal services, lodging, retail, and more. That said, accommodation and food services remain a cornerstone of the franchise economy  and one of the sectors where franchising would create the most devastating economic impact if it were to shrink. The report estimates that without franchising, the U.S. would have11,000 fewer businesses in hotels and restaurants alone, wiping out a significant portion of entrepreneurial activity in the sector.

The scale of the over all industry is striking. Franchising contributed $550 billion to U.S. GDP in 2024and employed nearly 8.8 million people  equivalent to 5.5% of the entire U.S. workforce and comparable in economic size to the entire Philadelphia metropolitan area. Franchise employment grew 7.3% between 2021 and 2024, outpacing the 6.7%average growth across comparable sectors. Looking ahead, franchise GDP is projected to grow 5% in 2025 more than three times the Congressional Budget Office’s 1.4% projection for the broader economy.

Franchisees Are Better Employers

One of the most important findings for anyone evaluating a restaurant franchise investment is what the data shows about working conditions. Using payroll records from Paychex covering roughly 10,000 employers over a two-year period, Oxford Economics found that franchise employees enjoy measurably better outcomes than workers at comparable non-franchised businesses:

• Franchise employees are 6.5 percentage points more likely to receive paid sick leave
• They are 5.7 percentage points more likely to receive health insurance
• Non-franchise employees are 49% more likely to leave their job than franchise counterparts by the 12th month of employment
• Part-time franchise workers are 20% more likely to transition to full-time status within their first two months on the job
• Wages grow faster at franchise businesses, while base pay is on par with comparable non-franchise employers

For restaurant franchise buyers, these numbers tell a story with real operational weight. Turnover is one of the most punishing cost drivers in food service. Recruiting, hiring, and training a single employee costs thousands of dollars and that cycle repeats itself constantly in high-turnover environments. A business model that demonstrably retains employees longer and converts part-timers to full-time faster is a competitive advantage that goes straight to the bottom line. Franchise Business Review’s own research reinforces this, finding that overall satisfaction among franchise employees was 83%, with 82% describing their work as rewarding and satisfying.

Franchising Opens Doors That Otherwise Stay Shut

For 64% of the more than 2,900franchisees surveyed, their franchise was the first business they ever owned. That is not a coincidence  it is the franchise model working exactly as designed. Franchising provides a proven playbook, an established brand, franchisor support, and a network of fellow operators that dramatically lowers the barrier to entrepreneurship for people who might never otherwise make the leap.

Thirty percent of survey respondents said flat-out that they would not own a business without the franchise model. Women and first-time owners were even more likely to credit franchising as the reason they became business owners at all. If franchising disappeared, the U.S. would lose an estimated 80,000 businesses, 215,500 local franchise locations, and 4 million jobs. In the restaurant and hotel sector alone, that’s11,000 businesses gone.

The diversity dimension is equally compelling. According to the 2023 Annual Business Survey, about 26% of franchises are owned by people of color, compared to just 19% of non-franchised businesses. Black-owned franchised businesses reported sales 2.3 times higher than Black-owned non-franchised businesses. Veteran-owned franchises reported average sales 2.7 times higher than their independent counterparts. The franchise model doesn’t just open a door  it changes the entire trajectory of what’s possible.

What Franchisees Value Most: The Support System

The report asked franchisees where franchisor support proved most valuable. The top three answers were access to a network (65% found it very important), franchisee training (64%),and technology platforms (64%). For women and first-time owners, access to that network ranked even higher  69% and 67% respectively called it very important.

This tracks with what we observe in our work matching buyers with restaurant franchise concepts. The right franchise system doesn’t simply hand you a brand name  it surrounds you with tools, systems, peer support, and institutional knowledge that would take years to develop independently. As one survey respondent put it: “I would not have taken the leap to be a business owner without the franchise. The franchise enables you to ramp up quickly with the support they give that just isn’t realistic if you are on your own.”

And that support translates to real business performance. On average, franchised businesses report sales 1.4times larger than non-franchised businesses of similar type  and employ 2.1times as many people. The infrastructure behind the brand is not just moral support. It is a measurable competitive edge.

Franchisees Give Back to the Communities They Serve

There’s a persistent narrative in some policy circles that franchise businesses are proxies for large corporations extracting value from local communities. The data tells a very different story. A full 85% of franchisees live and work in the same town or region where they operate their business. On average, they source 40% of their inputs from local suppliers. And 83% gave to local charities in the past year.

Collectively, U.S. franchisees donated an estimated $2.3 billion to charity, raised another $2.6 billion, and sponsored 34 million hours of volunteer activity in the most recent financial year. The average franchised business donated more than $12,000 and raised another $14,000 during that same period. These are not corporate citizenship statistics  they are neighbor statistics, reflecting the reality that most franchise owners are members of the communities they serve.

The Bottom Line for Restaurant Franchise Buyers and Brands

Whether you are a prospective franchisee evaluating your first investment in a restaurant concept, or a growing brand considering how to expand through franchising, this report delivers a clear, data-backed message: the franchise model works. It creates better jobs, builds stronger businesses, serves more diverse entrepreneurs, and invests more deeply in local communities than comparable independent ventures.

At We Sell Restaurants, we see this every single day in the buyers and brands we work with. The Oxford Economics report now confirms on a national scale what we have witnessed one transaction at a time. If you have been wondering whether now is the right time to buy a restaurant franchise  or whether franchising is the right growth path for your brand  the evidence has never been more compelling.

Reach out to the We SellRestaurants team to learn more about available franchise opportunities and how we can connect the right buyer with the right brand.

Frequently Asked Questions

Is franchising a good investment compared to opening an independent restaurant?

The data strongly supports franchising as a more resilient path to restaurant ownership. According to the Oxford Economics report, franchised businesses report average sales 1.4 times larger than non-franchised businesses of the same type. Franchised businesses also demonstrated slightly higher survival rates in their first one to two years  the period when new businesses are most vulnerable  and grew faster than independent ventures during that critical window. The built-in advantages of brand recognition, operational systems, and franchisor support give franchise owners a meaningful head start that independent operators have to build from scratch.

Do franchise employees make less money than employees at independent restaurants?

No. The Oxford Economics analysis of Paychex payroll data found no statistically significant difference in base wages between franchise and non-franchise employees when controlling for industry, location, and firm size. In other words, franchises offer pay on par with comparable independent businesses. What franchise employees do receive at higher rates are benefits  including paid sick leave, health insurance, paid vacation, and overtime — making total compensation at franchise businesses measurably stronger than at non-franchise counterparts.

Is franchising only accessible to people with significant capital orbusiness experience?

Not at all. In fact, the opposite is true. The Oxford Economics survey found that 64% of franchisees were first-time business owners, and 30% said they would not own any business if the franchise model were not available. Franchising is specifically designed to lower the barriers to entrepreneurship by providing systems, training, brand recognition, and support that independent startups must develop on their own. Women and first-time owners in particular cited the franchise network and training as critical to their ability to become business owners.

How does franchising benefit minority and veteran entrepreneurs specifically?

The numbers here are striking. According to the 2023 Annual Business Survey, about 26% of franchise businesses are owned by people of color, compared to just 19% of non-franchised businesses. Black-owned franchised businesses earn 2.3 times as much in sales as Black-owned independent businesses. Veteran-owned franchises report average sales 2.7 times higher than veteran-owned independent businesses. The franchise model appears to be an especially powerful equalizer for groups that have historically faced greater obstacles to capital, networks, and business support.

Is a restaurant franchise a locally owned business or just a corporate outpost?

It’s genuinely locally owned. The Oxford Economics survey found that 85% of franchisees operate businesses in the same town or region where they live. They hire local workers, source roughly 40% of their supplies from local vendors, and give back generously the average franchise owner donated more than $12,000 to charity and raised an additional $14,000 in the most recent financial year. Franchisees also pay local property taxes that fund schools and public infrastructure. While the brand may be national, the business owner is your neighbor.

What support can I expect from a franchisor as a restaurant franchise owner?

According to franchisees themselves, the most valuable areas of support are access to a peer network(rated very important by 65% of respondents), franchisee training covering sales, marketing, and operations (64%), and technology platforms for data collection and business management (64%). Franchisors also typically provide advertising support, vendor relationships that unlock bulk purchasing power, employee training resources, and real estate guidance. For first-time business owners, this comprehensive support structure is often the difference between thriving and struggling through the learning curve alone.

How fast is the franchise sector growing compared to the broader economy?

Significantly faster. Franchise employment grew 7.3% between 2021 and 2024, outpacing the 6.7% average growth rate across comparable sectors of the economy. Looking forward, franchise GDP is projected to grow 5% in 2025 more than three times the Congressional Budget Office’s 1.4% forecast for the U.S. economy overall. In sectors including retail, business services, and personal services, franchise employment grew at an even faster clip than the overall industry average, suggesting the model continues to gain ground as a preferred vehicle for business growth.

How do I get started with buying a restaurant franchise?

The best first step is connecting with a team that specializes in restaurant franchise transactions. At We Sell Restaurants, we work with buyers at every stage  from those just beginning to explore franchise concepts to experienced multi-unit operators ready to expand. We help you evaluate opportunities, understand the financials, and match your goals and investment profile with the right brand. Reach out to our team to start the conversation.

Learn More here: https://www.franchise.org/the-value-of-franchising/