Franchise Opportunities in the US: World Franchise Day Deep Dive
Jun 17, 2025
I love franchising and I believe in the power this business model has to turn entrepreneurial dreams into realities. I'm the franchisee's biggest advocate and also one of the strongest supporters of franchisors and franchise leaders.
That’s why when the World Franchise Council announced World Franchise Day earlier this year, I was thrilled!
To join this celebration, we created an infographic with data & insights that reflected the power of franchising, but not just in economic terms or around the franchise opportunities in the US.
To me, this day is also an opportunity to recognize the people behind the franchise brands—franchise founders, franchise owners, franchise leaders, and team members—who make it all happen, as well as those who support the industry.
But what is World Franchise Day, and what does it stand for?
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World Franchise Day: A Collective Celebration
Promoted by the World Franchise Council (WFC) and uniting more than 40 countries, World Franchise Day enhances awareness and appreciation of franchising.
It recognizes the profound impact of the franchise business model in shaping our modern economies and local communities, contributing to job creation, entrepreneurship, and development.
It also aims to shine a spotlight on the small business owners, who are in business for themselves, but not by themselves. Along with a global community of franchising, these players power the industry, and this day acknowledges their contributions and innovations within the business landscape.
It also honors the resilience and forward-thinking nature of franchises, as well as the power of connectivity, collaboration, and shared success, all supported by an established and proven system.
The WFC established earlier this year that World Franchise Day would be celebrated on June 11, 2025, and on the second Wednesday of June each year.
To commemorate the date, the International Franchise Association (IFA) reported that a group of US lawmakers introduced a historic congressional resolution to recognize June 11 as the first-ever World Franchise Day.
“From this point forward, each June 11 will be a moment to not only take stock and celebrate all that franchising does but also ensure that we are doing everything in our power to preserve, protect, and enhance the model for future generations”, said Matt Haller, President of the IFA in a press release.
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The Impact of the Franchise Industry in the US
Franchises have a significant impact on global economies and entrepreneurship, as the sector generates numerous direct and indirect jobs, provides numerous first-job opportunities, and offers individuals the chance to own and operate a business.
These positive effects of franchising are especially true in the United States.
The IFA’s “2025 Franchising Economic Outlook” indicates that there were 830,876 franchise establishments in the US in 2024, and the number is expected to increase by 2.5% in 2025, reaching 851,000 units.
One-third of business owners say they wouldn’t own their own business without franchising, according to “The Value of Franchising” report. In fact, around 26% of franchises are owned by minorities, including women and people of color. Another interesting fact: 14% of all franchisees in the country are veterans.
Contrary to popular belief, only a quarter of franchises in the US are quick-service restaurants (QSRs). The rest of the industry includes concepts related to childcare, health services, home improvement, pet care, fitness services, and hair salons. There are around 300 lines of business in franchising.
Iconic or legacy franchise brands account for just 16% of the US market, while local brands represent 50% of all franchises in the country.
And 48% of the franchising enterprises have 25 locations or fewer.
Another US franchising statistic is that around 8.8 million jobs in the country are franchise-related. It is expected that franchising employment will exceed 9 million by 2025.
76% of these jobs offer vacations, holidays, and sick leave. More than 65% of franchise workers are offered health insurance. And franchise firms often pay wages 2.2%-3.4% higher than those of similar non-franchise businesses.
Franchises also offer education and training (with certain legal limitations because of joint employer liability) and career growth opportunities. I know this firsthand because it happened to me!
I started as a pizza delivery driver and then progressed to become an assistant manager, unit manager, and district manager. Then, I joined the international division, where I opened many master franchises around the world. Ultimately, I became Director of Corporate Operations, overseeing the 65 company stores in the Atlanta region.
These opportunities can arise for anyone who is up to the challenge, whether it's advancing in the business or becoming an owner or multi-unit franchisee themselves.
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US Franchise Economic Growth
As the President of the IFA wrote in an Entrepreneur Magazine article, franchising is “a dominant force in the US economy”. In fact, if franchising didn’t exist, the US would lose:
- 60,000 businesses
- 223,000 establishments
- 1.8 million jobs
As stated in the IFA report, franchising is projected to grow 2.4% this year, outpacing the broader US economy's expected 1.9% GDP growth.
The research firm FRANdata, which also contributed to the industry report, forecasts that franchising output will surpass $936.4 billion in 2025, representing a 4.4% increase over 2024, when it reached $896.9 billion.
FRANDATA also expects franchise GDP to maintain growth, increasing at a pace of 5% to $578 billion this year.
Of course, these numbers may change due to the ongoing economic uncertainty, tariffs, geopolitical tensions, regulations, and other challenges related to labor availability and operational expenses. However, the sentiment is still positive as of today.
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Other economic data relate to the franchise’s supply chains. According to “The Value of Franchising” report, over one-third of franchises (36%) purchase at least 25% of their goods locally. Again, this indicator may increase as a mitigation strategy for tariffs on imported goods, delays, or shortages.
Our investigation also showed that, as small business owners, franchisees are deeply committed to the communities they serve. Not only providing local jobs, income, and benefits, but also supporting schools, and giving back through charitable initiatives.
65% of independent franchisees donate to charity and contribute millions of hours of volunteer work. “Franchisees are more than business owners—they are community builders”, states the IFA report.
Franchising Trends in the US
Franchise establishments are forecasted to reach 851,000 units in 2025. With consumers demonstrating a preference for services and high-value goods, Personal services and Retail food, products, and services are expected to be the fastest-growing industries this year, adding over 317,000 units combined.
- Personal services, which include the health and wellness, child-related, beauty-related, and pet services sectors, are expected to grow by 4.3% this year to 132,045 units.
- Retail food, products, and services are forecasted to grow by 3.5% to 185,408 units.
The Commercial & Residential Services establishments are expected to grow 2.4% to exceed 85,000 units by the end of the year.
The QSR and restaurant sectors are expected to grow by 2.2% and 1.3%, respectively, resulting in a total of 238,500 units and contributing more than 4 million employees.
Experts also highlight that ongoing advancements in technological adoption, including automation and artificial intelligence, will continue to optimize operational efficiency and profitability in franchised businesses.
Regarding franchise opportunities in the US, FRANdata projects that the South will continue to be the leading region for franchised businesses.
“Currently accounting for over 30% of all US franchised businesses, this share is expected to increase due to the region’s business-friendly policies and ongoing migration, leading the Southeast to experience the highest rate of franchise growth in 2025”, said the IFA report.
Based on projected establishment growth and total franchised units, the research firm identifies these as the top 10 US states for franchise growth in 2025:
- Georgia
- North Carolina
- Virginia
- Arizona
- South Carolina
- Pennsylvania
- Tennessee
- Florida
- Colorado
- Maryland
Notably, eight of these top-performing states are located in the southeast and southwest regions, reflecting the growth forecast for these areas.
Franchising as a Dream Catalyst
As you can see, franchising is a dynamic industry with a significant economic impact. While these small business owners face many challenges, they are also resilient, in large part thanks to the power of their economies of scale, proven systems, and the community that supports them every day.
Our purpose at the American Franchise Academy is to protect the American dream of business ownership through franchising. And, as franchisees biggest advocates, we made it our mission to provide business leaders with the knowledge, tools, and resources they need to be successful.
We do that through three elite training programs:
- COMMAND, for growing Multi-Unit Franchisees.
- LEAD, for District Managers.
- MANAGE, for Unit Managers and Single-Unit Franchisees.
If you are interested in learning more about our programs and how we can make your business journey more enjoyable and profitable, explore our Program’s Website.
