IFA Projects Franchise Sector Output to Pass $920 Billion in 2026

The International Franchise Association (IFA) projects that U.S. franchise economic output will exceed $920 billion in 2026, according to the organization's forecast reported by Franchise Times.

The figure marks the trade group's latest annual assessment of the sector's contribution to the U.S. economy. It positions franchising as a nearly trillion-dollar industry by output, spanning restaurants, retail, services, real estate and other segments tracked in the IFA's modeling.

The IFA, the sector's main lobbying and trade body in Washington, publishes the projection as part of its recurring franchise business outlook. The forecast serves as a benchmark that lenders, prospective franchisees, franchisors and policymakers use to gauge the health of the business format franchising model.

The $920 billion-plus output estimate covers the total value of goods and services produced by franchise establishments across the economy. It is the headline number in the IFA's outlook for 2026 and signals that the association expects the sector to keep growing in nominal terms over the coming year.

For an industry built on local operators paying fees and royalties to national brands, output of that scale underscores how deeply the franchise model is embedded in the American economy. Restaurants and quick-service food remain the most visible franchise category, but the IFA's data typically span dozens of industries, from fitness and haircare to maintenance services and business-to-business operations.

The forecast arrives at a moment when franchise operators face continued pressure on labor costs, food and supply inputs, and borrowing costs that remain elevated relative to the post-2008 decade. Against that backdrop, a projection of more than $920 billion in output for 2026 suggests the association sees unit-level economics and new-unit development holding up despite those headwinds.

The number also carries political weight. The IFA has been a prominent opponent of joint-employer liability expansions and other regulatory measures it argues raise costs for franchise systems. A near-trillion-dollar output figure gives the group a concrete measure of the sector's economic footprint when it makes that case to lawmakers and regulators.

Investors and lenders track the IFA outlook closely because franchise development is a leading indicator of small-business formation. When franchisors project unit growth and operators secure financing for new locations, that activity feeds through commercial lending, commercial real estate and equipment suppliers.

The 2026 forecast implies continued nominal expansion for the sector. Whether that growth outpaces inflation, and how it distributes across industries and geographies, will depend on consumer spending, wage trends and financing conditions through the year.

If the projection holds, franchising would enter 2027 knocking on the door of $1 trillion in annual output — a threshold that would hand the IFA an even louder argument for the model's centrality to U.S. Main Street growth.