📺 Stream EntrepreneurTV for Free 📺

By the Numbers: The Census Report on Franchises A first-time review by the U.S. Census Bureau dissects franchising, one stat at a time.

By Julie Bennett

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Close

Quick, did you know that nearly half of the optical stores in the United States are affiliated with franchises? Or that there isn't a single franchise company that sells luggage and leather goods?

Probably not. Actually, few knew until last fall, when the U.S. Census Bureau issued its first Economic Census Franchise Report. In 2007, when the Census Bureau surveyed 4.3 million businesses that have paid employees, its forms included questions about franchising for the first time. The results, which were released in September 2010, show that franchises account for 10.5 percent of all businesses and support 7.9 million workers in a work force of 59 million. Franchising sales account for nearly $1.3 trillion of $7.7 trillion in total sales.

The numbers came as no surprise to the International Franchise Association in Washington, D.C., says spokeswoman Alisa Harrison, because they closely match information gathered by accounting firm Pricewaterhouse-Coopers for the IFA's annual Economic Impact of Franchising reports.

"What did surprise us," Harrison says, "was that franchises appear in 295 different industries."

Franchising dominates several obvious industries, such as fast-food restaurants (59 percent) and hotels (47 percent). But it is barely present in others, such as musical instruments and supplies (1 percent) and driving schools (.04 percent).

The report, Harrison says, "gives us better information to present to policymakers when lobbying for issues related to our franchise community." It can also be a useful research tool for IFA members and for groups thinking of launching a franchised business. The IFA has allocated funds from its 2011 budget to hire a researcher to analyze the information and make it more user-friendly, she adds.

The Census Bureau conducts a business census every five years. The IFA is working with the bureau for the 2012 survey to include questions for businesses that do not have paid employees, such as sole proprietor accounting franchises. Owners of real estate franchises, Harrison says, might also fit into that category because their agents are independent contractors.

To find data from the report, go to the IFA's website, franchise.org, and type "2007 Economic Census Franchise Report" into the search engine.

Julie Bennett is a freelance writer.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Franchise

Franchising Is Not For Everyone. Explore These Lucrative Alternatives to Expand Your Business.

Not every business can be franchised, nor should it. While franchising can be the right growth vehicle for someone with an established brand and proven concept that's ripe for growth, there are other options available for business owners.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Passengers Are Now Entitled to a Full Cash Refund for Canceled Flights, 'Significant' Delays

The U.S. Department of Transportation announced new rules for commercial passengers on Wednesday.

Leadership

Why Companies Should Prioritize Emotional Intelligence Training Alongside AI Implementation

Emotional intelligence is just as important as artificial intelligence, and we need it now more than ever.

Business News

Elon Musk Tells Investors Cheaper Tesla Electric Cars Should Arrive Ahead of Schedule

On an earnings call, Musk told shareholders that Tesla could start producing new, affordable electric cars earlier than expected.