Franchise Industry Research

The 2024 International Franchise Association (IFA)/FRANdata Franchisee Survey Report provides a detailed analysis of the economic conditions on franchised businesses. While recent data show moderating inflation, the report showed these businesses have faced significant challenges over the past year due to persistently high operating costs and a slowdown in consumer spending. The report also shares some franchise sentiments on disclosure and tax policy.

The 2024 Franchising Economic Outlook is IFA’s annual study in partnership with FRANdata detailing the franchise sector’s performance for the past year and projected economic outlook for the year ahead, as well as an in-depth state outlook for all 50 states and Washington, D.C. The report highlights sector growth across eight key franchising business lines and details regional trends, including the top states for franchise growth. It also provides key insights into the state of the U.S. economy, trends in business, and challenges facing small business owners.

The report highlights the ongoing labor challenges encountered by franchise businesses. Concerns of inflation has faded for the businesses, but the cost of borrowing and the slowdown in consumer demand has started to challenge franchises. Significantly, there is a notable increase in budget allocations for technology, innovation, and marketing as well as training and development, crucial for the success of franchise systems.

As new joint employment standards loom, franchisors are highly concerned if they have to increase control or reduce support to their franchisees.

The survey reflects a diverse respondent pool, encompassing 215 brands from 26 different industries with franchise units ranging from less than 10 to over 12,000. Executives from private family-owned systems to platform companies and publicly listed firms contribute to the varied perspectives presented in this report.

The International Franchise Association's (IFA) 2023 Franchisee Survey shows the impacts of inflationary pressures on franchised businesses. The report highlights that while inflation is improving as compared to 2022, it is still having a significant impact on franchised businesses across all sectors with the cost of labor being the biggest driver. The report also highlights a number of ways that being part of a franchise system provides advantages for navigating rising costs.

Ahead of the NLRB’s forthcoming joint employer rule, survey conducted in partnership with Oxford Economics shows significant concerns among franchisees with broadened joint employment standard, decreasing access to business ownership, causing disruptions to the franchise relationship, and increasing costs.

The 2023 Franchising Economic Outlook is IFA’s annual study in partnership with FRANdata detailing the franchise sector’s performance for the past year and projected economic outlook for the year ahead, as well as an in-depth state outlook for all 50 states and Washington, D.C. The report highlights sector growth across eight key franchising business lines and details regional trends, including the top states for franchise growth. It also provides key insights into the state of the U.S. economy, trends in business, and challenges facing small business owners.