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Inflation Is Impacting Some Franchisees More Than Others, But All Are Hurting A new report found that around 90% of franchisees noticed a moderate to substantial inflation impact on their business.

By Madeline Garfinkle

Opinions expressed by Entrepreneur contributors are their own.

Rising inflation has taken no mercy, with nearly every industry being impacted.

And franchisees in particular have been hit hard — a new report by the International Franchise Association found that nearly 90% of franchisees have noticed a moderate to substantial inflation impact on their business.

The survey examined 1,004 respondents who cumulatively own more than 4,984 franchise businesses. Nine of out 10 franchisees reported raising costs at their units to combat rising costs of goods and labor.

Among the two leading culprits that led to rising costs were gasoline and fuel prices, followed by labor-related increases.

Related: 28 U.S. States Have Just Hit the Highest Average Gas Prices in Their History, National Average Breaks Record

However, the inflationary damage has impacted some industries more than others. Lodging (90%), quick-service restaurants (83%), and child-related businesses (61%) saw the most impact, with beauty-related industries (51%) seeing the least.

The one saving grace amid the inflationary pressures within the franchise industry has been the support among peers — 47% of respondents said they've received support from other franchisees during the difficult time, with retail franchisees reporting the most peer support at 69%.

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

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