Franchising's Growth and Influence

2005 saw phenomenal growth in the number of franchises. Although the exact percentage of unit growth for all franchise systems is yet unknown, Entrepreneur Magazine says that their limited list of 500 top franchise companies grew in units by a whopping 11%.

The franchise community is a large one that impacts the economy and society. The International Franchise Association states that in 2001 there were more than 760,000 franchised businesses in the U.S. As a whole, franchises employ some 10 million people and have a total economic output of $1.5 trillion. According to a Small Business Administration report "Franchising's Growing Role in the U.S. Economy" from 1975 to 1988 the industry has grown 5.7% compounded annually.

An 11% growth in top growing franchise networks helps the economy, particularly "in the small and medium business (SMB) market." Of course, such economic clout and strong growth begs to know more about the industry, which some argue is still something of a mystery. The U.S. Bureau of the Census just announced that it will include questions about franchising in the 2007 Census of Business.