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Fact sheet

Franchise Statistics 2026: 184 Sourced Facts on US Franchising

184 franchise statistics on size, costs, lending, closures, contracts and regulation, each copied from a published report with its year, base and fact id, compiled October 18, 2026.
Updated Next update: after the 2024 Annual Business Survey release (scheduled 2026-12-03) and SBA's next FOIA fileBy the Editorial TeamData: CC BY 4.0
A wooden desk with an open notebook of hand-drawn bar charts, a calculator and a coffee cup in soft morning light, no people, no readable text
Short answer

These franchise statistics come from 64 published research reports. The US had an estimated 832,521 franchise establishments in 2025, and 4.7% of responding employer firms franchised in 2023. The median FDD estimates $265,372 to $573,000 to open, the median royalty is 6% of sales, and franchise-coded loans were 13.8% of SBA 7(a) loans in FY2026 to June 30.

This fact sheet reports published data. It is not financial advice; requirements are as each brand published them on the date shown.

The numbers

01832,521832,521: US franchise establishments, 2025 estimate, up 1.3% on 2024IFA/FRANdata, 2026 Franchising Economic Outlook, PDF p. 9, via Franchise Industry Growth (S001)
024.7%4.7%: US employer firms (responding) that operated all or partly as a franchise, 2023Census 2024 Annual Business Survey, data year 2023 (AB2300CSCB01), via Franchise Statistics by State (S002)
0313.8%13.8%: Franchise-coded share of SBA 7(a) loans, FY2026 (Nov 13, 2025 to Jun 30, 2026)SBA 7(a) FOIA, as of 2026-06-30, via SBA Franchise Loans (S003)
046%6%: Median standard royalty, 239 FDDs with a percentage royalty (middle half 5% to 7%)Minnesota CARDS FDDs, 2025 to 2026, via Franchise Royalty Rates (S004)
05$265,372$265,372 to $573,000: Median Item 7 low and high estimate, 259 FDDs issued 2025 to 2026Minnesota CARDS Item 7 tables, via Franchise Initial Investment (S005)
064.7%4.7%: Median share of franchised outlets that exited a system in one year (terminations, non-renewals, reacquisitions, ceased operations)FDD Item 20, 220 systems, latest FY, via Franchise Closure Rates (S006)
078.7%8.7% vs 7.0%: SBA 7(a) franchise vs non-franchise loans charged off, FY2010 to FY2019 approvalsSBA 7(a) FOIA, as of 2026-06-30, via Franchise Failure Rate (S007)
0897.3%97.3%: FDDs that require or provide for an owner’s personal guarantee (252 of 259)Minnesota CARDS FDDs issued 2025 to 2026 (259 brands), via Franchise Personal Guarantee (S008)
0981.1%81.1% of 259 Minnesota-filed FDDs issued 2025 to 2026 promise some protected area (210 FDDs)Item 12, Minnesota CARDS FDDs, via Franchise Territory Rights (S009)
1028.6%28.6% of 259 FDDs show negative total equity (74 FDDs)Minnesota CARDS, 259 FDDs issued 2025 to 2026, via Franchisor Financial Health (S010)
111414: Franchise registration states on the FTC and NASAA list (as reported by GAO, 2023), each confirmed at its statute in October 2026GAO-23-105338, via Franchise Registration States (S011)
125.8%5.8% of 259 FDDs list an independent franchisee association (15 FDDs)FDD Item 20, 259 Clean FDDs on Minnesota CARDS, issued 2025 to 2026, via Franchisee Associations (S012)

Franchise statistics on industry size, firms and owners

There is no single count of US franchises. The answer depends on the unit: an industry estimate of establishments (Franchise Industry Growth, S001), a Census count of establishments with paid employees in 2017 (Franchise vs Independent Business, S017), or the share of employer firms that franchise (Franchise vs Independent Business, S019). Each measure is shown with its own base below. The 2017 Economic Census is still the latest Census establishment count, so industry estimates fill the gap after 2017 and have missed by about 2% in recent years (Franchise Industry Growth, S016).

Costs and fees

Franchise costs vary more across brands than any average suggests. In the site’s sample of 259 franchise disclosure documents (FDDs) filed in Minnesota and issued 2025 to 2026, the median brand’s high estimate is 1.92 times its low estimate (Franchise Initial Investment, S030). Recurring fees beyond the royalty also add up: the median brand lists $5,500 a year in fixed-dollar fees on top of royalty and ad fund (Franchise Royalty Rates, S035). For a plain-language overview of budgeting, see the site’s franchise costs guide.

Financing and SBA lending

SBA loan files are the only public, loan-level record of how franchises are financed. Two caveats apply to every figure here. Franchise status depends on the lender entering a franchise code, and coding fell while SBA did not publish its Franchise Directory (SBA Franchise Loans, S048), so FY2024 and FY2025 franchise counts are understated. Franchise-flagged PPP loans are a floor for the same reason (Franchise Pandemic Relief, S056).

Figure 1Startup share of franchise-coded SBA loans by sector, FY2020 to June 30, 2026Share of franchise-coded SBA 7(a) loans that opened a new business (pet: 7(a) and 504 approvals)
0.0%20.0%40.0%60.0%80.0%75.3%Fitness centers71.7%Pet concepts (7(a) and 504)70.6%Personal care67.2%Snack and beverage bars57.0%Restaurants54.0%All franchise-coded 7(a) loans7.7%Hotels
Source: SBA 7(a) and 504 FOIA files as of 2026-06-30, via the site's sector reports (ids in the CSV). Download data (CSV)

Outcomes, closures and turnover

No public dataset tracks every franchise unit from opening to closing, so there is no reliable national franchise failure rate. Three kinds of evidence exist: Census and survey research on startup survival, SBA loan charge-offs, and the outlet counts franchisors disclose in FDD Item 20. They point the same way: franchise and independent startups survive at similar rates after the first year (Franchise Failure Rate, S063) (Franchise Failure Rate, S064), and transfers to new owners are the most common turnover event (Franchise Closure Rates, S060). The site’s franchise failure rate review covers the studies in detail.

Franchise data comes from many separate public records; this page brings them together.
Franchise data comes from many separate public records; this page brings them together.

Contracts and territory

Contract terms are the most uniform part of franchising. Most of the 259 FDDs in the sample set a 10-year term, require a personal guarantee and include a post-term non-compete. Territory protection is common but conditional: most FDDs print the federally required no-exclusive-territory sentence even when they promise a protected area (Franchise Territory Rights, S078). Readers comparing offers can use the site’s buying a franchise guide as a checklist.

Figure 2Share of 259 FDDs with each term or condition, FDDs issued 2025 to 2026Minnesota-filed FDDs, one per brand; each bar is a published statistic on this page
Franchisor may assign the agreement without consent99.2%Owner personal guarantee97.3%Post-term non-compete88.4%Some protected territory81.1%Hired manager may run the unit78.0%Binding arbitration71.4%10-year initial term65.6%Franchisee confidentiality clauses disclosed53.3%Area development agreement offered48.6%Supplier rebates received by franchisor47.9%Negative franchisor equity28.6%Private equity or fund owner21.2%Independent franchisee association listed5.8%
Source: Minnesota CARDS FDDs issued 2025 to 2026, via the site's FDD reports (ids in the CSV). Download data (CSV)

Franchisor finances and ownership

Franchisor finances appear in two public records: audited statements attached to FDDs (Item 21) and, for listed companies, SEC 10-K filings. Royalties are a minority of revenue for most listed franchisors (How Franchisors Make Money, S093), and required purchases are another revenue line for many private ones (Franchise Supplier Rebates, S094). Weak balance sheets are common in the FDD sample; states respond with fee deferrals and other financial assurance conditions (Franchisor Financial Health, S090).

Regulation and enforcement

Franchise sales are regulated by the FTC Franchise Rule nationally and by state registration and relationship laws. Enforcement is mostly about registration: most state orders concern an unregistered offer or sale (Franchise Enforcement Actions, S111), and penalties are small at the median (Franchise Enforcement Actions, S112). Franchise cases are a small part of the federal civil docket, but filings rose in the 12 months to June 30, 2026 (Franchise Litigation, S115).

Franchisee voice and rights

FDDs say little about franchisee organizations. Few list an independent association, and about half disclose that franchisees signed confidentiality clauses in the last three fiscal years (Franchisee Associations, S120). Ad funds are rarely audited (Franchise Advertising Fund, S122), and franchisors keep wide rights over franchisee data (Franchise Technology Requirements, S127). Item 15 rules on owner involvement vary widely by brand (Semi-Absentee Franchises, S130) (Semi-Absentee Franchises, S131).

Sector snapshots

Each line below comes from one of the site’s sector reports and describes franchise lending or structure in that sector. The Census share of franchise establishments for every sector is in the sector snapshot table that follows. Sector loan shares inherit the SBA coding caveat described under financing.

Table 1Sector snapshot: franchise share of US establishments by sector, 2017 Economic Census
SectorFranchise share of establishments, 2017 (%)As stated in the sector report (base and definition)Source report
Private mail and shipping centers67.567.5% of U.S. private mail centers (3,249 of 4,812) were franchises in 2017.Shipping Store Franchise Statistics (S156)
Hotels and motels57.957.9% of U.S. hotel and motel establishments (31,244 of 53,978) were franchises in 2017, the latest Census count.Hotel Franchise Statistics (S149)
Restaurants (limited-service)57.3Franchises were 57.3% of U.S. limited-service restaurant establishments in 2017: 144,941 of 252,884.Restaurant Franchise Statistics (S148)
Electronics stores (cell phone)47.610,992 of 23,078 U.S. electronics-store establishments (47.6%) were franchise units in 2017.Cell Phone Store Franchise Statistics (S163)
Exam preparation and tutoring37.1Exam preparation and tutoring was 37.1% franchised in 2017 (3,511 of 9,467 US establishments), rank 10 of 267 covered industries.Education Franchise Statistics (S157)
Snack and beverage bars (coffee)33.233.2% of the 63,247 US snack and nonalcoholic beverage bars were franchise establishments in 2017 (21,011).Coffee Franchise Statistics (S160)
Passenger car rental (in a franchise system)32.2In 2017, 3,935 of 12,209 U.S. passenger car rental establishments (32.2%) operated in a franchise system, ranking 11 of 241 industries with 1,000 or more establishments (median 3.3%).Car Rental Franchise Statistics (S164)
Beauty salons27.221,462 of 78,887 U.S. employer beauty salons (27.2%) were franchise establishments in 2017; 90.7% of those franchise salons were franchisee-owned.Beauty Salon Franchise Statistics (S154)
Tax preparation26.7Franchise establishments were 26.7% of the 30,025 U.S. tax preparation establishments with payroll in 2017, up from 21.7% in 2007.Tax Preparation Franchise Statistics (S159)
Fitness centers26.626.6% of U.S. fitness and recreational sports centers (9,757 of 36,655 establishments) were franchise establishments in 2017, the latest Census franchise tabulation.Fitness Franchise Statistics (S150)
Gas stations with convenience stores1818.0% of U.S. gasoline stations with convenience stores (17,782 of 98,788) were franchise establishments in 2017, the latest Census count.Convenience Store Franchise Statistics (S155)
Real estate brokerage offices17.721,529 real estate brokerage offices in the United States were franchised in 2017, 17.7% of 121,906 offices (NAICS 531210).Real Estate Franchise Statistics (S158)
Senior care (services for the elderly)13.5In 2017, 4,272 of 31,533 U.S. establishments in services for the elderly and persons with disabilities (NAICS 624120) were franchises (13.5%).Senior Care Franchise Statistics (S152)
Automotive service8.68.6% of US automotive service establishments were franchised in 2017 (15,732 of 182,561).Automotive Franchise Statistics (S153)
Temporary help services (staffing)6.3Franchises were 6.3% of U.S. temporary help services establishments (2,345 of 37,391) in 2017.Staffing Franchise Statistics (S161)
Pet care4.7In 2017, 867 of 18,464 US pet care establishments were franchise units (4.7%), rank 106 of 267 covered industries.Pet Franchise Statistics (S162)
Home services (22 industries)3.2In 2017, 18,706 of 586,545 establishments in 22 US home service industries were franchised (3.2%).Home Service Franchise Statistics (S151)
Source: U.S. Census Bureau, 2017 Economic Census franchise status (EC1700FRAN), as published in each sector report; employer establishments; franchise status is self-reported, so shares are likely lower bounds. Download CSV
Figure 3Franchise share of US establishments by sector, 2017Share of employer establishments that were franchise units, 17 sectors covered by the site's reports
Private mail and shipping centers67.5%Hotels and motels57.9%Restaurants (limited-service)57.3%Electronics stores (cell phone)47.6%Exam preparation and tutoring37.1%Snack and beverage bars (coffee)33.2%Passenger car rental (in a franchise system)32.2%Beauty salons27.2%Tax preparation26.7%Fitness centers26.6%Gas stations with convenience stores18.0%Real estate brokerage offices17.7%Senior care (services for the elderly)13.5%Automotive service8.6%Temporary help services (staffing)6.3%Pet care4.7%Home services (22 industries)3.2%
Source: U.S. Census Bureau, 2017 Economic Census (EC1700FRAN), via the site's sector reports (ids S148 to S164). Download data (CSV)

Where the reports differ

Some measures appear in more than one report with different numbers. In each case below the reports use a different base, period or definition, or the counts have not yet been reconciled. Both figures are shown with their definitions; neither is picked over the other.

Table 2Where the site's reports give different figures for similar measures, 2017 to 2026
MeasureFigure A (definition)Figure B (definition)Why they differ
Initial fee as a share of the Item 7 low estimate16.8% of the low estimate, n 259 (Franchise Royalty Rates, S037)15.3% of the low estimate, 258 FDDs with a fee line (Franchise Initial Investment, S031)Same FDD sample; the two reports use different fee inputs and denominators (259 vs 258 FDDs). Both give 7.6% of the high estimate.
Median SBA 7(a) loan for a franchise startup, FY2020 to June 2026$350,000 across 21,344 start-up 7(a) term loans (What Franchises Borrow, S052)$302,000 for a startup franchise loan (Franchise Resale Index, S170)Different loan sets: start-up 7(a) term loans only (21,344) versus every franchise-coded 7(a) approval marked Startup, including revolving lines of credit and cancelled approvals. Both reports state their filter.
Share of FDDs promising a protected territory81.1% (210 of 259) promise some protected area (Franchise Territory Rights, S009)73.7% with full protection; 81.1% counting limited protection (Fitness Franchise Statistics, S172)Same 259 FDDs and the same coding; the fitness report also quotes the narrower full-protection share. Use 81.1% for any protected area.
Real estate and build-out share of the Item 7 high estimate, all 259 FDDsAveraged 33.4% (Franchise Initial Investment, S174)36.2% for the median FDD (Fitness Franchise Statistics, S173)Mean of shares versus median share.
Franchise share of establishments, 2017 Economic Census11.4% of establishments in the covered industries (Franchise vs Independent Business, S017); 11.41% (Franchise Industry Growth, S176)11.5% across all 267 industries with published franchise counts (Home Service Franchise Statistics, S175)Different industry sets in the same Census file.
Startup share of all franchise-coded SBA loans, FY2020 to June 30, 202654.0% of franchise-coded 7(a) loans (SBA Franchise Loans, S046)51.6% of all franchise-coded approvals (Pet Franchise Statistics, S177)7(a) only versus 7(a) and 504 approvals combined.
Hotels' share of franchise-coded SBA 7(a) dollars31.8%, FY2018 to FY2023 (Hotel Franchise Statistics, S178); 31.7%, FY2010 to June 30, 2026 (Hotel Franchise Statistics, S134)Accommodation 26.0% of franchise-coded dollars, FY2024 to FY2026 (SBA Franchise Loans, S179)Different periods; FY2024 and FY2025 coding was depressed while the Directory was unpublished.
Source: Franchise Consultants and Brokers published reports (statistic ids shown); figures copied as stated. Download CSV

What we could not verify: popular franchise statistics

We opened the top results for the search “franchise statistics” on October 18, 2026 and recorded their headline claims. Pages that loaded were statistics roundups by marketing, engineering and franchisor sites; two top results returned errors. The table lists claims for which the page cites no primary dataset next to the claim, quotes each claim, and shows what the primary data in the site’s reports says instead. A claim can be true and still be unverifiable from public data; where no dataset measures it, the table says so.

Table 3Popular franchise statistics online vs what the primary data shows (pages read 2026-10-18)
#Claim as printedWhere seen (source given)What the primary data shows
C01"10% of all businesses in the U.S. are franchises." Also: "10.5% of U.S. businesses are franchises"WebFX; HigherVisibility (Links to other roundup pages; no primary dataset)4.7% of responding US employer firms franchised in 2023 (Franchise Statistics by State, S002); franchise establishments were 11.4% of establishments in the covered industries in 2017 (Franchise vs Independent Business, S017). The answer depends on firms versus establishments.
C02"A new franchise opens every 8 minutes during a single business day."WebFX; NY Engineers (None next to the claim)No public dataset counts franchise openings nationally. The industry estimate shows net growth of 1.3% in 2025 (Franchise Industry Growth, S001); 258 systems in the FDD sample opened 4,235 franchised outlets in their latest year (Franchise Development Backlog, S072).
C03"Approximately 80-90% of franchises are successful, according to various industry reports."NY Engineers ("Various industry reports", not named)High success rates trace to franchisor surveys such as a 1992 survey reporting 96.9% of units still operating, which did not survey franchisees (Franchise Failure Rate, S165). Of 2004 startups, 60% of franchises and 63% of independents were still operating in 2011 (Franchise Failure Rate, S064).
C04"According to SBA data, approximately 20-25% of franchise businesses close within the first five years, compared to roughly 50% of independent small businesses."Zoom Room ("SBA data", no file named)SBA publishes loan outcomes, not business closures. 8.7% of franchise and 7.0% of non-franchise 7(a) loans approved FY2010 to FY2019 were charged off (Franchise Failure Rate, S007).
C05"Veterans own 14% of franchises in the US." Also: "An estimated 14% of franchise businesses are veteran-owned"HigherVisibility; Zoom Room (None next to the claim)The Census ABS shows veteran-owned and nonveteran-owned employer firms both franchised at 4.6% in 2023 (Franchise Owner Demographics, S026). None of the site's reports found a primary source for the 14% figure.
C06"69% of franchise owners are men." Also: "31.0% of all franchise owners are women"WebFX; NY Engineers (Links to other roundup pages)Female-owned firms were 19.1% of US franchise employer firms in 2023 (Franchise Owner Demographics, S024). That is a firm count, not a count of individual owners.
C07"44 years old is the average age of a franchise owner."WebFX; HigherVisibility (None next to the claim)The last Census microdata with owner age and franchise status are from 2007: 32.8% of franchise owners were under 45 and the median owner was in the 45 to 54 band (Franchise Owner Demographics, S166).
C08"5% to 6% is the royalty percentage of a franchise." [dash shown as 'to'] Also: "royalty fees that range from 4% to 12%"WebFX; NY Engineers (None next to the claim)The median standard royalty in 239 FDDs with a percentage royalty is 6% (Franchise Royalty Rates, S004); 86.2% sit between 4% and 8% (Franchise Royalty Rates, S032).
C09"53% of franchises are owned by multi-unit franchise owners." Also: "Approximately 54% of all franchise units are now owned by multi-unit operators"WebFX; Zoom Room (Links to other roundup pages)Not measured by any public dataset the site uses: FDD Item 20 counts outlets, not how many each owner holds, and Census franchise tables do not report it. Could not verify.
C10"There are over 3000 unique franchises in the U.S."WebFX; NY Engineers (Links to other roundup pages)The FTC estimates about 4,000 franchisors covered by its rule and about 240 new franchisors a year (Franchise Registration States, S023); the September 29, 2026 SBA Franchise Directory lists 2,401 coded brands (SBA Franchise Directory, S167).
C11"The median total investment for a franchise in the United States is approximately $250,000"Zoom Room (None next to the claim)In 259 FDDs issued 2025 to 2026, the median Item 7 estimate runs from $265,372 (low) to $573,000 (high) (Franchise Initial Investment, S005).
C12"The SBA 7(a) program funded approximately $10 billion in franchise loans in the most recent fiscal year."Zoom Room (None next to the claim)SBA files show 7,174 franchise-coded 7(a) loans worth $5.38 billion in FY2025 (SBA Franchise Loans, S169), an undercount while the Franchise Directory was unpublished (SBA Franchise Loans, S168).
Source: Top search results for 'franchise statistics', read 2026-10-18; primary data via the site's reports (ids shown). Download CSV

Latest data behind these franchise statistics

Every statistic on this page carries its own data year. The table lists each underlying dataset, the latest release the site’s reports use, and when that release is dated. The oldest is the 2017 Economic Census, which is still the latest Census count of franchise establishments.

Table 4Latest data: each underlying dataset and its as-of date, checked 2026-10-18
DatasetPublisherLatest release usedDate or period (as recorded)Recorded inStatistics on this page
Economic Census, franchise status (EC1700FRAN)U.S. Census BureauReference year 2017; no U.S. 2022 tableno U.S. tableFranchise vs Independent Business: How Franchise Establishme22
Annual Business Survey, franchise tablesU.S. Census BureauData year 2023 (2024 ABS); next release 2026-12-032026-12-03Franchise vs Independent Business: How Franchise Establishme11
Franchising Economic Outlook, 2026 editionIFA and FRANdata2025 estimates, 2026 projections2025Franchise Industry Growth: How Fast It Really Is and How Acc5
SBA 7(a) and 504 FOIA loan filesU.S. Small Business AdministrationApprovals FY1991 to as-of date2026-06-30Franchise Loan Interest Rates: SBA 7(a) Rates vs Prime, FY2040
SBA Franchise Directory fileU.S. Small Business AdministrationFile dated 2026-09-29File dated 2026-09-29SBA Franchise Loans: How Much 7(a) and 504 Lending Goes to F1
PPP and Restaurant Revitalization Fund FOIA filesU.S. Small Business AdministrationFinal files2020-04 to 2021-07Franchise PPP Loans and Restaurant Revitalization Grants: Wh2
FDD sample, Minnesota CARDS (259 brands)Minnesota Department of CommerceFDDs issued 2025-01-24 to 2026-08-18FDDs issued 2025-01-24 to 2026-08-18Franchise training programs: hours, location and costs in 2574
Survey of Consumer FinancesFederal Reserve Board2022 survey (most recent conducted)2022Franchise Affordability: How Many US Families Can Meet Franc2
Integrated Database, civil casesFederal Judicial CenterFilings to June 30, 20262025-07-01 to 2026-06-30Franchise Litigation in U.S. Federal Courts: Filings, Outcom2
Consumer Sentinel Data BookFederal Trade Commission2024 edition (no 2025 book)2024Franchise Fraud in the US: What Complaint and Enforcement Re1
State statutes and state enforcement order listsState legislatures and regulatorsChecked October 20262015-01-01 to 2026-10-14Franchise Enforcement Actions: 562 State Orders, 2015 to 20299
Company 10-K filingsSEC EDGARLatest fiscal year, mostly FY2025Latest two fiscal years in each company's latest 10-K (FY2024 to FY2026)Publicly Traded Franchise Companies: Openings, Closures and 2
Google TrendsGooglePulled 2026-10-07Oct 2025 to Sep 2026Franchise Search Trends: Google Interest in Buying a Franchi1
Survey of Business Owners 2007 microdataU.S. Census Bureau2007 (historic; no newer owner-age file)2007Franchise owner demographics: who owns US franchise business3
Source: Release dates and periods as recorded in the site's reports' fact sheets; counts derived (rows DL01 to DL14 in derived.csv). Download CSV

Original analysis: what this page contains

Breadth: statistics by theme

Formula
count of fact sheet S rows; themed lists = 9 themes x 15
Inputs
S001 to S184 (D01, D04)
Result
184 statistics: 12 headline cards, 135 one-line statistics in 9 themes, 17 sector rows and the rest in comparison tables and charts
Limitations
Breadth is a count, not a measure of importance; themes overlap.

Traceability: source reports and tiers

Formula
distinct source slugs; Tier 1 S rows / all S rows x 100
Inputs
source and tier columns of S rows (D02, D03, D05, D12)
Result
64 of 65 published reports; 96.2% of statistics rest on a Tier 1 primary source
Limitations
Tier is the source report's rating of its primary source; FDD-based figures are the site's own coding of public filings.

Recency profile

Formula
latest year named in each statistic's text or data period, grouped
Inputs
data_period and text of S rows (D06, D13 to D18)
Result
75.5% of statistics have data from 2025 or 2026; 27 rest on 2017 or earlier data, mostly the 2017 Economic Census
Limitations
A range such as 'FDDs issued 2025 to 2026' counts as 2026; fiscal years count by their label.

Popular claims check

Formula
count of claims recorded from top search results; count with no primary dataset next to the claim
Inputs
C01 to C12 (D07, D08, D09)
Result
12 claims checked; 12 cite no primary dataset next to the claim; 1 is not measured by any public dataset the site uses
Limitations
Pages and rankings change; a claim with no cited source can still be correct.

Where the reports differ

Formula
count of measure pairs with different published figures
Inputs
definitions table (D10)
Result
7 measures, each shown with both definitions
Limitations
Two pairs (manager-run share, protected territory share) are unreconciled counts on the same sample and are flagged for correction.
Figure 4Statistics on this page by latest data year (compiled 2026-10-18)Count of the page's statistics by the most recent year their data cover
037.575112.5150272017 or earlier62018 to 202292023320241120251282026
Source: Franchise Consultants and Brokers, derived from this page's fact sheet (rows D13 to D18). Download data (CSV)

In short

What's new

As of October 18, 2026
  • 2026-10-18: page compiled from 64 published reports; training-hours figures taken from the final Franchise Training Programs report (median 76 hours).
  • 2026-10-18: popular franchise statistics from top search results checked against primary data (12 claims).
  • SBA lending figures use the SBA FOIA files as of 2026-06-30 and the SBA Franchise Directory file dated 2026-09-29.
  • FDD figures use 259 Minnesota-filed FDDs issued 2025-01-24 to 2026-08-18.
  • Census establishment counts remain at reference year 2017; the next Annual Business Survey release is scheduled for 2026-12-03.

Questions people ask

How many franchises are in the US?

The IFA and FRANdata estimate 832,521 US franchise establishments in 2025 (Franchise Industry Growth, S001). The latest Census count, the 2017 Economic Census, found 498,234 franchise establishments with paid employees in the industries it covered (Franchise vs Independent Business, S017). Counting firms instead, 135,505 responding US employer firms (4.7%) franchised in 2023 (Franchise vs Independent Business, S019). The FTC estimates about 4,000 franchisors (Franchise Registration States, S023).

What percentage of franchises fail?

No public dataset gives a national franchise failure rate. Franchised startups were 5.1 percentage points more likely than independents to survive their first year (2002 and 2007 cohorts) (Franchise Failure Rate, S063), and of 2004 startups 60% of franchises and 63% of independents were still operating in 2011 (Franchise Failure Rate, S064). In FDD Item 20 data, the median system’s exits equaled 4.7% of its franchised outlets in one year (Franchise Closure Rates, S006).

How much does it cost to open a franchise?

The median FDD issued 2025 to 2026 estimates $265,372 to $573,000 (Franchise Initial Investment, S005). 20.8% of FDDs have a low estimate under $100,000 (Franchise Initial Investment, S028) and 31.3% a high estimate of $1 million or more (Franchise Initial Investment, S029). The median initial franchise fee is $49,500 (Franchise Royalty Rates, S036). For lower-cost options see franchises under $100k.

What is the average franchise royalty?

The median standard royalty is 6% of sales across 239 FDDs with a percentage royalty, with a middle half of 5% to 7% (Franchise Royalty Rates, S004). Royalty plus ad fund and other percentage fees has a median of 8% (Franchise Royalty Rates, S034).

How many franchise loans does the SBA make?

Lenders made 5,619 franchise-coded 7(a) loans worth $4.75 billion from November 13, 2025 to June 30, 2026, 13.8% of 7(a) loans (SBA Franchise Loans, S184). FY2025 had 7,174 franchise-coded 7(a) loans worth $5.38 billion (SBA Franchise Loans, S169). From FY1991 to June 30, 2026 the total was 155,337 loans and $84.3 billion (SBA Franchise Loans, S043).

Frequently asked questions

What share of US businesses are franchises?

It depends on the unit. 4.7% of responding US employer firms operated all or partly as a franchise in 2023 (Franchise Statistics by State, S002). Counting establishments instead, franchises were 11.4% of establishments in the industries the 2017 Economic Census covered (Franchise vs Independent Business, S017).

How many people work in franchise businesses?

The IFA and FRANdata estimate 8,788,313 US franchise jobs in 2025 and project 8,944,955 for 2026 (Franchise Industry Growth, S014). In Census data, franchise firms held 10.2% of employment at responding US employer firms in 2023 (Franchise Statistics by State, S020).

How long is a typical franchise agreement?

170 of 259 FDDs issued 2025 to 2026 (65.6%) set a 10-year initial term, and the median is 10 years (Franchise Agreement Terms, S073). 90.2% of renewable agreements charge a renewal fee (Franchise Agreement Terms, S074).

Do franchisees get exclusive territories?

Usually not in the strict sense. 85.3% of 259 FDDs print “You will not receive an exclusive territory” (Franchise Territory Rights, S078), yet 81.1% promise some protected area (Franchise Territory Rights, S009), and 92.9% of those keep the franchisor’s right to sell online inside it (Franchise Territory Rights, S079).

How common are personal guarantees in franchising?

97.3% of 259 FDDs require or provide for an owner’s personal guarantee (Franchise Personal Guarantee, S008). Only 3 of 247 guarantee forms (1.2%) cap the guarantor’s liability (Franchise Personal Guarantee, S082).

How many states require franchise registration?

14 states require franchisors to register or file their FDD before selling (Franchise Registration States, S011). Those 14 states held 37.6% of the US population on July 1, 2025 (Franchise Registration States, S105).

How long does it take to open a franchise?

Among 223 brands that state a typical time, the median runs 5.9 to 9 months from signing to opening, FDDs issued 2025 to 2026 (How Long to Open a Franchise, S084).

How much initial training do franchisors provide?

The median initial training program is 76 hours, about 1.9 forty-hour weeks, across 252 brands with FDDs issued 2025 to 2026 (Franchise Training Programs, S086).

What share of SBA franchise loans go to startups?

Startups were 54.0% of US franchise-coded 7(a) loans from FY2020 to June 30, 2026, against 11.0% of other 7(a) loans (SBA Franchise Loans, S046).

How many franchisors are new?

45 of 250 franchisors with 2025 or 2026 FDDs (18.0%) had been franchising under 5 years (Emerging Franchise Brands, S100). The FTC estimates about 240 new franchisors a year (Franchise Registration States, S023).

For journalists

Most quotable statistics

If you cite only a few, cite these

  • 832,521: US franchise establishments, 2025 estimate, up 1.3% on 2024 source
  • 4.7%: US employer firms (responding) that operated all or partly as a franchise, 2023 source
  • $265,372 to $573,000: Median Item 7 low and high estimate, 259 FDDs issued 2025 to 2026 source
Press summary and suggested headlines

Franchise Consultants and Brokers has published a fact sheet of 184 franchise statistics, each copied from one of 64 published research reports and traced to a fact id and primary source. The IFA and FRANdata estimate 832,521 US franchise establishments in 2025, up 1.3%. Census data show 4.7% of responding employer firms franchised in 2023. In 259 franchise disclosure documents issued 2025 to 2026, the median initial investment estimate runs from $265,372 to $573,000, the median royalty is 6% of sales, 97.3% provide for a personal guarantee and 28.6% show negative franchisor equity. Franchise-coded loans were 13.8% of SBA 7(a) loans in FY2026 to June 30. The median system's exits equaled 4.7% of its franchised outlets in one year. The page also checks 12 widely repeated franchise statistics against primary data and lists where the site's own reports use different definitions. Data tables are free to reuse under CC BY 4.0.

Suggested headlines

  • US franchise establishments estimated at 832,521 in 2025, up 1.3%
  • Median franchise costs $265,372 to $573,000 to open, FDDs show
  • Franchise-coded loans are 13.8% of SBA 7(a) lending in FY2026
  • 97.3% of franchise contracts call for a personal guarantee
  • 28.6% of franchisors in a 259-FDD sample show negative equity

Methodology

Scope. This fact sheet draws on 64 of the 65 reports listed as published in the site’s research registry on 2026-10-18; the Item 19 report is not used because this page carries no Item 19 figures. Statistics were taken only from those reports’ key findings, headline figures and fact sheets. Each row of this page’s fact sheet records the source report slug, the source fact id or ids, the primary source URL the report opened, and the source report’s own limitation note.

Selection. We chose statistics that answer common questions about US franchising and that carry a year, base and geography: 12 headline cards, 9 themed lists of 15, a 17-row sector table and 20 rows used in comparison tables and charts. Brand rankings, earnings, Item 19 results and per-unit sales were excluded. Brand names appear only where a source report states them as facts.

Copying rule. Text is copied verbatim from each report’s report.json by script, so wording, rounding and caveats match the source. Where two reports give different numbers for a similar measure, both appear in the definitions table with their bases.

Claims check. We opened the top search results for “franchise statistics” and a close variant on 2026-10-18, saved the pages, and recorded claims with no primary dataset cited next to them. Two results returned HTTP errors and one redirected to an unrelated page; they are listed in excluded.md.

Derived figures. The only calculations on this page are counts about the page itself (statistics per theme, data-year profile, source tiers), shown in the original analysis block with formulas. Scripts are in the report folder.

Limitations. The page inherits each source report’s limits. FDD figures describe 259 brands with Minnesota-filed FDDs, not every franchisor. SBA figures describe loans, not units. Census establishment data stop at 2017. Last updated 2026-10-18.

Sources and source quality

Tier 1: primary and government sources (32)

  1. AS 45.66.220(2), Alaska State Legislature (accessed 2026-10-07)
  2. HB1177 bill status page, Arkansas State Legislature (accessed 2026-10-08)
  3. Survey of Consumer Finances 2022, summary extract public data (scfp2022excel.zip), Board of Governors of the Federal Reserve System (accessed 2026-10-03)
  4. 2026-27 Enacted Budget, 1701 DFPI, California Department of Finance (accessed 2026-10-03)
  5. Cal. Corp. Code 31500, California Legislative Information (accessed 2026-10-07)
  6. FJC Integrated Database, civil cases SY1988 to present (cv88on.zip, through 2026-06-30), Federal Judicial Center (accessed 2026-10-04)
  7. Consumer Sentinel Network Data Book 2024, Federal Trade Commission (accessed 2026-10-06)
  8. Issue Spotlight: Risks to Small Business Success in Franchising (July 2024), Federal Trade Commission staff (accessed 2026-10-08)
  9. FOIA 7(a) loan file, FY2020 to present, as of June 30, 2026 (CSV), Franchise Consultants and Brokers (accessed 2026-10-08)
  10. Minnesota CARDS franchise registrations (259 Clean FDDs linked in the dataset), Franchise Consultants and Brokers analysis of Minnesota CARDS FDD filings (accessed 2026-10-05)
  11. Franchise Failure Rates: An Assessment of Magnitude and Influencing Factors, Journal of Small Business Management (abstract via OpenAlex) (accessed 2026-10-03)
  12. Statute screen (two Justia-scoped searches) plus cited page, Maryland General Assembly (accessed 2026-10-08)
  13. Press release (2025 re-proposal), North American Securities Administrators Association (accessed 2026-10-03)
  14. Thinking about starting a franchise business? Think again, The Journal of Entrepreneurial Finance (Pepperdine) (accessed 2026-10-03)
  15. Business Employment Dynamics, Table 7: Survival of private sector establishments by opening year, Accommodation and Food Services, U.S. Bureau of Labor Statistics (accessed 2026-10-03)
  16. 2024 Annual Business Survey, Characteristics of Businesses, AB2300CSCB01 (data year 2023), U.S. Census Bureau (accessed 2026-10-03)
  17. 2017 Economic Census, Selected Sectors: Franchise Status for the U.S. and States (EC1700FRAN), bulk file, U.S. Census Bureau (accessed 2026-10-04)
  18. 2020 Annual Business Survey, AB1900CSCB01 (data year 2019), U.S. Census Bureau (accessed 2026-10-03)
  19. 2007 Economic Census, Franchise Statistics bulk file EC0700CFRA1, U.S. Census Bureau (accessed 2026-10-14)
  20. Survey of Business Owners 2007 Public Use Microdata Sample (CSV), U.S. Census Bureau (accessed 2026-10-04)
  21. Brighter Prospects? Assessing the Franchise Advantage using Census Data (CES 17-21), U.S. Census Bureau, Center for Economic Studies (accessed 2026-10-03)
  22. Survival Patterns Among Newcomers to Franchising (CES 97-5), U.S. Census Bureau, Center for Economic Studies (accessed 2026-10-03)
  23. 91 FR 24235, PRA notice for the Franchise Rule (OMB 3084-0107), U.S. Federal Trade Commission (Federal Register via GovInfo) (accessed 2026-10-07)
  24. 89 FR 57077, Disclosure Requirements and Prohibitions Concerning Franchising (final rule), U.S. Federal Trade Commission (Federal Register via GovInfo) (accessed 2026-10-07)
  25. GAO-23-105338, FTC: Actions Needed to Improve Education Efforts (p. 7 and note 18), U.S. Government Accountability Office (accessed 2026-10-07)
  26. GAO-23-105338: FTC Actions Needed to Improve Education Efforts and Awareness of Complaint Process for Franchise Owners (April 2023), U.S. Government Accountability Office (accessed 2026-10-06)
  27. McDonald's, Form 10-K, fiscal year ended 2025-12-31 (filed 2026-02-24)), U.S. Securities and Exchange Commission (EDGAR) (accessed 2026-10-08)
  28. 7(a) and 504 FOIA loan files and data dictionary (as of 2026-06-30), U.S. Small Business Administration (accessed 2026-10-03)
  29. Paycheck Protection Program (PPP) FOIA, files as of 2024-09-30, U.S. Small Business Administration (accessed 2026-10-05)
  30. SBA Franchise Directory file, effective September 29, 2026 (xlsx), U.S. Small Business Administration (accessed 2026-10-05)
  31. Washington franchise enforcement order list, Washington Department of Financial Institutions, Securities Division (accessed 2026-10-14)
  32. 16 CFR 436.5, Disclosure items (FTC Franchise Rule), eCFR as of 2026-10-01, eCFR (National Archives) (accessed 2026-10-14)

Tier 2: trade bodies, market research, company filings (4)

  1. 2026 Franchising Economic Outlook (2026-02-19), FRANdata for the International Franchise Association (accessed 2026-10-04)
  2. 2025 Franchising Economic Outlook (February 2025), FRANdata for the International Franchise Association (accessed 2026-10-04)
  3. Google Trends, 'buy a franchise', United States, 2004 to present, Google (accessed 2026-10-07)
  4. 2025 Residential Franchise Report (REALTOR Magazine, 2025-10-01), National Association of REALTORS (accessed 2026-10-14)

Guides that use this data

Browse every study in our franchise research library.

How to cite and reuse

Franchise Consultants and Brokers Editorial Team. "Franchise Statistics 2026: 184 Sourced Facts on US Franchising." Franchise Consultants and Brokers, updated October 18, 2026. https://franchiseconsultantsandbrokers.com/research/franchise-statistics/

The data tables and charts on this page are licensed under CC BY 4.0. Please credit “Franchise Consultants and Brokers, franchiseconsultantsandbrokers.com” with a link to this page.

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