The franchising sector of the economy expanded by over 18 percent from 2001 to 2005, adding more than 140,000 new businesses and 1.2 million new jobs to the nations economy, according to a new economic impact study released today. Direct economic output of franchises grew by more than 40 percent to $880 billion in 2005.
Franchising now provides more jobs than many other sectors of the economy, including the durable goods manufacturing and financial activities sectors, said Matthew Shay, president and CEO of the International Franchise Association. It is clear that franchising is a critical engine of economic growth in the United States, powering local communities across the country.
The study, prepared by PricewaterhouseCoopers (PwC) on behalf of the International Franchise Association Educational Foundation, shows that from 2001 to 2005 franchise businesses have outpaced the economy as a whole in terms of the rate of growth of jobs, payroll and output. In fact, the rate of growth in employment was three times higher for franchise businesses than for the economy as a whole.