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U.S. Business Landscape | 2026 Edition

Franchising in Perspective

How franchise locations compare with the U.S. small-business population

Headline comparison

2.3%Approximate Count Ratio

845,000 franchise locations compared with 36.2 million small businesses

The U.S. franchise sector is projected to include about 845,000 locations in 2026, equivalent in count to roughly 2.3% of the nation’s 36.2 million small-business firms. Locations and firms are different units of measurement.

How the Estimate Is Calculated

MeasureFigure
U.S. franchise establishments, 2026 projection845,000
U.S. small businesses, SBA 2026 publication36,207,130
Franchise locations ÷ small-business firms (845,000 ÷ 36,207,130 × 100)2.33% ≈ 2.3%

Two data series. Different reference periods. IFA / FRANdata projects franchise locations for 2026. The SBA’s February 2026 publication reports 36,207,130 small-business firms using 2022 Census data. This is a scale comparison, not a same-year market-share measurement.

Why the Definitions Matter

  1. 01 Locations Are Not Companies

    IFA counts franchise establishments; SBA counts firms. One franchise company can operate multiple locations. Therefore, the 2.3% ratio is not the exact share of small-business companies or owners that are franchises.

    Most franchises are small businesses, but the franchise sector is not identical to the small-business population.

  2. 02 Most Small Businesses Have No Employees

    82.3% of small businesses, 29.8 million firms, have no paid employees. Only about 6.4 million small businesses have employees.

    Using only the small-employer denominator gives 845,000 ÷ 6.4 million ≈ 13.2%. This is illustrative, not evidence that 13.2% of small employer firms are franchises, because locations and firms remain different units.

  • Small Businesses With No Employees82.3%29.8 million firms have no paid employees; about 6.4 million have employees.
  • Employment Count Ratio~14%Nearly 8.9 million franchise jobs compared with 62.3 million small-business employees (8.9M ÷ 62.3M ≈ 14.3%).
  • Projected Franchise Output, 2026$921.4BProjected franchise economic output for 2026 (IFA / FRANdata).

Sources: IFA / FRANdata, 2026 Franchising Economic Outlook (February 19, 2026; locations, jobs and output are projections). SBA Office of Advocacy, Frequently Asked Questions About Small Business (February 2026; business counts use 2022 Census data).

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