There’s no doubt that franchising is a leading contributor to the U.S. economy and the country’s GDP output. According to some of the latest statistics and data, the industry is responsible for approximately 775,000+ establishments in the U.S., including 300 or so new concepts that launch each year. Cumulatively, these franchises account for $787 billion (with a b) dollars and employ more than 8.2 million workers. According to the U.S. Census Bureau, it’s estimated that franchises make up just over 10% of all businesses in America and contribute as much as 3% of the total GDP ($474.2 billion).
These are easily some impressive numbers to share, but if you’ve ever wondered about franchising’s impact in California only, FranNet of California has found some research you may be interested in reading about.
Digging Up Statistics
Some of the most comprehensive data and statistics can be found on the International Franchise Association’s (IFA) website. There are tools and resources that allow you to break down the numbers on a state by state basis. And since we represent California, we’ve already pulled the pertinent data for you.
Franchising’s Impact in the State of California
Going strictly by the numbers, there are just over 81,000 franchise establishments in California. Combined, they produce nearly 788,000 jobs for workers in our state, with a payroll estimated to top $28 billion per year. In terms of output, franchising in the state of California is responsible for $81.5 billion in economic contributions, amounting to $43.9 billion to our Gross Domestic Product.
California Voters Speak Out
Approximately 80% of California’s voting population have a favorable view of locally owned small businesses in the U.S. – of which franchising plays an outsized role. More than half, 53%, reveal that franchises play a part in their daily lives through the purchase of products or services. Almost the same percentage, 55%, believe that franchises are much more likely to contribute to community building, assistance, and charitable efforts on a local level.
If you – or someone you know – has an interest in exploring an entrepreneurial future, but don’t know where to start, we urge you to review the FranNet “Buying Process,” a series of steps we guide you through to discover the perfect business opportunity for your income and lifestyle goals. There are seven in all, the first of which begins with a simple online quiz that we like to call the “Entrepreneurial Readiness Profile.” It only takes a few minutes to fill out but allows you the opportunity to share your work style, income goals, and business model preferences. We then take this information and process it internally, before providing you with multiple franchise opportunities that match up with your answers.
That’s it – that’s step one, so we urge you to share your answers and preferences with us when you’re ready to launch your own personal entrepreneurial journey. After all, if everything goes according to plan, you could become part of next year’s statistics that reveal franchising’s impact in the Golden State!
If you’d like to review your options for franchise ownership, we’d love to be your guide and navigator. Meetings with FranNet of California are always no-cost and no-obligation to you. Our role and function is to be your guide, allowing you to make your own informed decisions on the direction you want to go. Over time, we’ve had the opportunity to work with hundreds of entrepreneurs in California who ended up owning the business of their dreams – and we can do the same for you. Getting started with FranNet of California is easy, and you can book an introductory session with us by following this link.