Franchising Is the Backbone of Entrepreneurship

This year, the franchise industry is on pace to outperform the U.S. economy. Here's why.

- by MATT HALLER

Entrepreneurship has long been the backbone of the American Dream, and at its core lies the transformative power of franchising.

In 2025, franchising continues to shine as a dominant force in the U.S. economy—offering aspiring entrepreneurs a pathway to going into business for themselves, but not by themselves.

The organization I lead, the International Franchise Association (IFA), projects that franchising is set to grow 2.4% this year, outpacing the broader U.S. economy’s expected 1.9% GDP growth, with projections of over 210,000 jobs created. We expect the number of franchise establishments to increase by more than 20,000 units this year, or 2.5%, to 851,000 total units across the country.

That’s a testament to its resilience and potential, even in the face of uneasiness in the economy due to wavering consumer confidence, geopolitical and policy uncertainty in the U.S., and lingering high interest rates for small businesses.

A catalyst for economic growth