The study "Economic Impact of Franchised Businesses" was conducted for the International Franchise Association Educational Foundation by PricewaterhouseCoopers in 2003 to measure economic activity that occurred in 2001, the latest data available.  The complete study and other pertinent information about franchising is located at the association's Web site: www.franchise.org

Jobs Generated

• Franchised businesses generated jobs for more than 18 million Americans.

Economic Output:  Value of Goods and Services it Produces

• More than 760,000 franchised businesses generated a total economic output of more than $1.53 trillion, or nearly 10 percent of the U.S. private-sector economy.

Employment

• Franchised businesses directly employed 9,797,000 people.
• This is about the same number as the U.S. durable-goods manufacturing sector.
• It is almost as large as that of the information and construction sectors combined.

Economic Impact

• Resulted in more than 18 million jobs or nearly 14 percent of the nation's private-sector employment.
• The businesses provided $506 billion in payroll, or more than 11 percent of the nation's private-sector payroll.
• Franchised businesses stimulated an overall economic output of $1.53 trillion, nearly 10 percent of the private-sector economy.

Business-Format Franchises

• Accounted for 622,272 establishments.
• Direct impact - 7.7 million jobs, $162.9 billion payroll, $460 billion of economic output.
• Indirect impact, economic activity because of franchised businesses - 14 million jobs, $369 billion in payroll, $1.15 trillion of economic output
• Employed about as many people in 2001 as the financial services industry.

Product Distribution Franchises

• Accounted for 145,211 establishments.

• Direct impact -- 2 million jobs, $66.2 billion in payroll, $164.6 billion of economic output.

• Indirect impact, economic activity because of franchised businesses -- 3.9 million jobs, $137 billion in payroll, $374 billion in economic output.

In The States

• Franchised businesses accounted for at least 10 percent of the private-sector economic output of 20 states.
• The economic output generated because of franchised businesses was greatest in five states - California, Texas, Florida, Illinois, and New York.
• As a portion of the state's overall economy, economic output generated because of franchised businesses was very significant in these states - Nevada, Arizona, Florida, New Mexico and Maryland.
• Jobs created because of franchised businesses were at least 10% of the private sector workforce in all but four states and the District of Columbia.
• The number of jobs created because of franchised businesses was greatest in five states - California, Texas, Florida, Illinois and Ohio.

• Franchising had the greatest impact on jobs in Nevada, accounting for 20 percent of its private-sector workforce.

The International Franchise Association, founded in 1960, is the world's oldest and largest organization representing franchised small-businesses which span 75 diverse industries.

A CD-ROM that contains the full report, including National, State and Congressional District Views, is available for $10, prepaid, postage and handling, by writing to IFA Publications, P.O. Box 1020, Sewickley, Pa. 15143 or by calling 800-543-1038.