And the Winners are: Franchisees, Workers and the Economy
The International Franchise Association joined the glitter and glamour on Oscar night with a 30-second television ad that pitches the wide-ranging opportunities of the franchise business model. The Sunday, March 12, commercial also educates the public – including lawmakers and regulators – about the significant impact that franchising makes on local communities and within the economy as a whole.
“There are too many people who want to own their own business but don’t know where to start. That’s where franchising comes in,” IFA President and CEO Matt Haller points out. “As IFA seeks to protect, enhance and promote franchising, this ad raises awareness about just how many different types of business ownership opportunities are available in franchising. Franchising helps entrepreneurs go into business for themselves, but not by themselves,” which is noted during the commercial that aired during the Academy Awards telecast.
Franchise Industry Impact in U.S.
The International Franchise Association reports that nearly 800,000 franchise businesses operate in the United States. They employ more than 8.4 million people and generate in excess of $825 billion within the American economy, according to IFA figures. Franchises also account for close to 3% of the nation’s gross domestic product, IFA says.
Franchising covers a huge spectrum of services and products. Restaurants probably come to mind first for most people, but franchises also provide a sweeping array of child- and elder-care services, youth enrichment, personal-care salons, pet care, mental-health counseling, medical testing, dental-tool repair, amputee orthotics, home services (painting, plumbing, roofing, electrical, landscape care, staging, vinyl/leather repair, and one-room to whole-house remodeling), traditional and high-tech signage, hotels, and much, much more.
Perks for Franchise Owners and Employees
Nearly one-third of franchisees independently surveyed said they would not own a business without franchising. In addition, the IFA takes pride in the industry’s inclusiveness, with business owners well-represented by women, military veterans and people of color. According to IFA statistics, people of color own approximately 26% of franchises compared to 17% of independently owned/non-franchise businesses.
About two-thirds of franchise workers are offered health insurance, which is more than non-franchise small businesses, IFA states, and a little over three-fourths of employees have vacation, holiday and sick-leave benefits. Members of the IFA include companies engaging in 300-plus business categories, individual franchisees, and other enterprises that support franchising via business development, law, marketing and technology.
Promoting the Franchise Industry
The IFA’s mission is to protect, enhance, and promote franchising. In addition to the commercial at the 2023 Academy Awards, IFA has been promoting franchising with its Open For Opportunity Roadshow. This initiative was launched to help people better understand franchising and its value to communities. Recent Roadshows included a visit to New Jersey and a Nevada stop right before the IFA 2023 Annual Convention. Highlights included site visits at local franchise businesses and roundtable discussions with franchisees, local elected officials, and business and community leaders. Officially launched at the 2022 IFA Annual Convention in San Diego, the Roadshow has also visited South Florida, Atlanta, Philadelphia, Wilmington, DE, Sacramento, San Jose, Virginia, Maryland, and the Twin Cities.
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