Franchise Jobs to Drive 34.6% of Michigan Employment Growth

A new study on behalf of Cinch has identified the U.S. states where franchises are driving the most job growth.

Franchises are a fundamental part of the American business landscape, spanning a diverse range of industries and sectors. From popular fast-food chains like McDonald’s and Subway to hotel brands like Marriott and Hilton, franchises are deeply woven into daily life. While these and other household names like 7-Eleven, Dunkin’, and The UPS Store are well-known franchise brands, many people may be surprised to learn that even indoor pickleball courts, escape rooms, cryotherapy centers, and pet grooming services often operate under franchise models. These businesses not only cater to a wide range of consumer interests but also create pathways for entrepreneurs to own and operate their own firms.
In recent years, franchise businesses have also become increasingly important drivers of job growth and economic output, currently representing around 9% of all U.S. business establishments and nearly 6% of total employment. According to the International Franchise Association (IFA), franchise business growth is expected to outpace the broader U.S. economy in the coming year, fueled by stronger consumer demand, improving labor supply, and advancements in automation software and AI. By 2025, franchise economic output is projected to exceed $936 billion, with employment in the sector surpassing 9 million workers.
Using newly released data from the IFA and the Projections Managing Partnership, this analysis by Cinch—a franchise marketing software company—examines the role of franchise businesses in state-level job growth. By comparing franchise-specific employment projections to those of the broader labor market, this report highlights how franchises are shaping the availability of jobs across the country.
Franchise employment is heavily concentrated in quick-service restaurants (QSRs), which are by far the largest source of franchise jobs in the U.S. In 2025, QSR franchises are projected to employ more than 4 million workers, making up a significant portion of the overall franchise workforce. Other major employers in the franchise sector include retail (1.2 million workers), full-service restaurants (1.1 million workers), and lodging (728,000 workers). These industries rely on the franchise model to expand their reach, benefiting from brand recognition and standardized operations to maintain consistency across locations.
While QSRs dominate in total employment, the fastest-growing segment is personal services, which includes businesses such as fitness centers, beauty salons, childcare services, and health & wellness providers, among others. Employment in personal services franchises is projected to grow by 7.8% between 2023 and 2025, outpacing all other sectors. The retail sector follows closely behind, with franchise employment expected to increase by 6.9% over the same period. Despite their already large workforce, QSR franchises continue to expand, with employment projected to increase by 5.1% by 2025.