New Data Shows Franchise Workers Earn More, Stay Longer

The International Franchise Association released a new study on January 7 showing that franchised businesses outperform comparable non-franchised companies on wages, benefits, and employment stability. The report, conducted by Oxford Economics, drew from nearly 3,000 franchisee surveys and detailed payroll data from Paychex, making it the most comprehensive look at franchise employment to date.

What the Data Shows for Franchise Employees

Franchise workers are 3 to 7 percentage points more likely to receive health insurance and paid leave than peers at comparable non-franchise businesses. Wages at franchised locations grow faster over time, and part-time franchise employees are roughly 20 percent more likely to convert to full-time roles. Between 2021 and 2024, franchise employment grew 10 percent faster than employment in comparable non-franchise sectors.

Who Actually Owns These Businesses

The data challenges the assumption that franchising is dominated by large multi-unit groups. Eighty-two percent of franchisees own a single location. Ninety-four percent have fewer than 50 employees. Nearly half of all franchised brands operate 25 units or fewer. These are neighborhood businesses, not corporate-owned chains, and the study documents that they behave like neighborhood businesses: 83 percent donated to local charities in the past year, and franchisees purchase roughly 40 percent of their goods from other local businesses.

The Ownership Gateway Finding

Sixty-four percent of franchisees are first-time business owners, and 30 percent say they would not have started a business at all without the franchise model. This tracks with long-standing observations from franchise consultants: the structured support of a franchise system lowers the threshold for ownership enough to bring in operators who lack the risk tolerance or prior experience for a fully independent venture.