The value of franchising: Why this business model is worth protecting

If you want to live life on your terms through business ownership, this episode of “The Sidekick Life” is for you.

We sat down with Matt Haller, president and CEO of the International Franchise Association, to unpack a powerful new report on the value of franchising and why the future of this business model depends on smart advocacy, real data and bold storytelling.

And yes … we also talk about the biggest event in franchising happening next week in Vegas. 👀

The value of data in franchising

The IFA partnered with Oxford Economics to create a comprehensive, data-backed report on the impact of franchising across the U.S. economy.

But why now?

“We’re always trying to create conversation about franchising … Data is really important for us to tell the story,” Matt said.

In a world where opinions travel faster than facts, the IFA wanted something irrefutable. This wasn’t anecdotal. It includes:

• 3,000 franchisees surveyed
• Representation across 300+ industries
• Payroll data comparing franchise vs. non-franchise businesses

The goal? Ground the conversation in real numbers and protect a business model that creates wealth, jobs and opportunity.

“Franchising is not a foregone conclusion moving forward,” Matt said.

That’s a mic drop moment.

The stat that changes the conversation

One of the biggest takeaways?

Franchise locations perform 1.4 times better than non-franchise businesses in the same industries.

That’s not hype. That’s data.

For prospective franchise owners asking, “Why pay franchise fees?” This is your answer.

“The performance … across thousands of franchisees is exactly that,” Matt said. “Sure, it comes with trade-offs. But in more cases than not, it works.”

Yes, there are royalties. Yes, there are systems. But there’s also brand equity, marketing power, operational support and a network effect that independent operators just don’t have.

This is one of the strongest data-backed validations of the franchise model we’ve ever seen.

Franchising is bigger (and broader) than fast food

Many people assume franchising equals fast food. But fast food represents only about a fourth of franchise businesses.

Franchising spans many industries that include:

• Home services
• Pet care
• Hospitality
• Education
• Business services
• Retail
• Health & wellness

“Franchising is not an industry,” Matt said. “It’s a business strategy used by over 300 industries.”

If you’re exploring business ownership, you likely have more options than you think.

The “franchise means local” truth

82% of franchisees own just one location.

That means when you walk into a franchise business, there’s an 8-in-10 chance it’s owned by a local entrepreneur.

“Franchising is still a small-town success story, and it’s grounded in localism at the end of the day,” Matt said.

This completely reframes the “shop local” conversation.

Franchise brands may be national, but ownership is overwhelmingly local. These are neighbors. Parents. Veterans. Immigrants. First-time entrepreneurs.

And they’re building wealth inside proven systems.

Franchising makes business ownership possible

The report found that 30% of franchisees say they would not have owned a business without franchising. And Matt believes that number may actually be higher.

Why?

Because franchising lowers the barrier to entry with:

• Built-in systems
• Brand recognition
• Peer networks
• Supplier relationships
• Training and support

For many people, especially women, veterans, immigrants and minorities, franchising is the bridge between wanting to own a business and actually doing it.

“Those are business owners that just don’t exist because you don’t have that network effect … and the support infrastructure from the franchisor,” Matt said.

This is wealth creation. This is mobility. This is impact.

The employment story no one talks about

Franchising doesn’t just benefit owners. It creates better employee outcomes, too.

According to the report:

• Wages grow faster in franchise businesses
• Part-time employees are 20% more likely to transition to full-time
• Franchise workers are more likely to receive benefits after one year
• Employment growth in franchising outpaces non-franchise businesses

There are 8.8 million direct franchise jobs in the U.S.

“It’s transformational … and the data bears it out,” Matt said.

Franchise systems invest in training, benefits and upward mobility. And because ownership is local, employees often work directly with people they know, not some distant corporate office.

Why the IFA’s advocacy work is critical

Behind the scenes, the IFA is fighting to protect the franchise model from regulatory changes that could fundamentally alter how it works. Matt and his team are currently advocating for the American Franchise Act, legislation aimed at ending the ongoing “joint employer” issue once and for all.

“This report is fundamental to why the business model needs to be protected,” Matt said.

Data drives policy. Policy protects opportunity. Without advocacy, franchising could be reshaped by people who don’t fully understand it. That’s why this report – and the work happening in Washington – matters so much.

Don’t miss the IFA convention in Las Vegas

The annual IFA Convention is February 23-25 in Las Vegas. And with 4,000+ franchise leaders gathering, it’s the Super Bowl of franchising.

This year’s speaker lineup includes:

• Kat Cole (former Cinnabon president turned CEO of AG1)
• Andrew Cathy, CEO of Chick-fil-A
• Daymond John from “Shark Tank”
• Industry leaders from Purpose Brands and beyond

“Franchising at its core is still a people business,” Matt said.

There’s no better place to see that in action than at the IFA Convention. If you’re serious about business ownership, franchise growth or protecting this model for the next generation, this is where the conversations happen.