In 2003,
PricewaterhouseCoopers conducted a groundbreaking study entitled, "The Economic
Impact of Franchised Businesses", for the
International Franchise Association Educational Foundation. The study
examined franchise-related economic activity for 2001, at the time the latest data available.
Here are a few highlights from this report. For the complete analysis,
visit
www.franchise.org.
Jobs Generated
Franchised
businesses generated jobs for more than 18 million Americans.
Economic Output:
Value of Goods and Services
Produced
More than 760,000
franchised businesses generated a total economic output of more than
$1.53 trillion, or nearly 10 percent of the U.S. private-sector economy.
Employment
Franchised
businesses directly employed 9,797,000 people. This is about the
same number as the U.S. durable-goods manufacturing sector. It is almost
as large as that of the information and construction sectors combined.
Economic Impact
Franchising resulted in more
than 18 million jobs or nearly 14 percent of the nation's private-sector
employment. These businesses
provided $506 billion in payroll, or more than 11 percent of the
nation's private sector payroll.
Franchised
businesses stimulated an overall economic output of $1.53 trillion,
nearly 10 percent of the private sector economy.
Business-Format
Franchises
Accounted for
622,272 establishments.
Direct impact - 7.7
million jobs, $162.9 billion payroll, $460 billion of economic output.
Indirect impact,
economic activity because of franchised businesses - 14 million jobs,
$369 billion in payroll, $1.15 trillion of economic output
Employed about as
many people in 2001 as the financial services industry.
Product Distribution
Franchises
Accounted for
145,211 establishments.
Direct impact -- 2
million jobs, $66.2 billion in payroll, $164.6 billion of economic
output.
Indirect impact,
economic activity because of franchised businesses -- 3.9 million jobs,
$137 billion in payroll, $374 billion in economic output.
In the States
Franchised
businesses accounted for at least 10 percent of the private sector
economic output of 20 states.
The economic output
generated because of franchised businesses was greatest in five states: California, Texas,
Florida, Illinois, and New York.
As a portion of the
state's overall economy, economic output generated because of franchised
businesses was very significant in these states: Nevada, Arizona,
Florida, New Mexico and Maryland.
Jobs created because
of franchised businesses were at least 10 percent of the private sector
workforce in all but four states and the District of Columbia.
The number of jobs
created because of franchised businesses was greatest in five states: California, Texas, Florida, Illinois and Ohio.
Franchising had the
greatest impact on jobs in Nevada, accounting for 20 percent of its
private sector workforce.
A CD-ROM that contains the full report, including
national, state and Congressional district views, is available for $10,
prepaid, postage and handling, by writing to IFA Publications, P.O. Box
1020, Sewickley, Pa. 15143 or by calling 800-543-1038.
