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

entrepreneur daily

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 She is a graduate from Syracuse University, and received an MFA from Columbia University. 

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

Editor's Pick

Related Topics

Business Solutions

Stay Organized with This Task Management Tool, on Sale for $30

A Study Planr Pro subscription is just $30 for life.

Business Ideas

55 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

Here Are 3 Strategies Startup Founders Can Use to Approach High-Impact Disputes

The $7 billion "buy now, pay later" startup Klarna recently faced a public board spat. Here are three strategies to approach conflict within a business.

Data & Recovery

Get 2TB of Cloud Storage with PhotoSphere for Just $280 for a Limited Time

Easily store and access photos, videos, and other files spread across your work devices.