牛津经济研究院-特许经营的价值（英）-2021.9-39页_1mb

Summary of "The Value of Franchising" Report

Core Content

This report, commissioned by the International Franchise Association, evaluates the value of the franchising model across three main dimensions: employment practices, entrepreneurship, and local community impact. It is based on data from the Homebase payroll database and a survey of over 4,000 franchisees (the franchise census), providing insights into how franchising affects workers, business owners, and local economies.

Main Goals of the Study

• Analyze pay, benefits, and training at franchised firms and compare them with non-franchise small businesses.
• Assess franchising as a path to entrepreneurship, especially for first-time business owners and women.
• Understand the role of franchisees in local communities, including local procurement and charitable giving.

Key Findings

1. Franchises Offer Competitive Pay and Training

• Franchise workers earn slightly higher wages (2.2-3.4%) compared to non-franchise workers, though the difference is statistically significant only in some models.
• The average hourly wage in the sample is $11, with franchise workers earning $0.24-$0.37 more per hour.
• Franchise firms are slightly larger on average (13.6 vs. 9.6 workers per month), consistent with U.S. Census Bureau data.
• Starting wages, wage growth, and turnover are similar between franchise and non-franchise businesses.
• Franchise workers are promoted to management at higher rates (14% vs. 11% after 20 months), though this difference is marginally significant.
• Training hours per employee are comparable to the average U.S. business, with franchisees offering an average of 33.4 hours of formal training per employee.
• 11% of franchisees provide 50 hours or more of training per worker.

2. Franchising as a Path to Entrepreneurship

• Franchised businesses are larger than non-franchised ones, with 1.8 times higher sales and 2.3 times more jobs.
• Franchises are inclusive, with benefits extending across all demographic groups, including Black-owned businesses which generate 2.2 times more sales than non-franchised Black-owned businesses.
• 42% of franchisees receive capital support, and 21% report being capital constrained when starting their first franchise.
• 32% of all franchisees would not own a business if not for franchising, with 39% of female owners and 39% of first-time owners expressing this sentiment.
• This suggests that franchising could be responsible for the loss of 60,000 businesses (or 223,000 establishments) if not available.

3. Franchisees as Local Community Contributors

• Franchisees are local business owners, which helps keep resources within the local economy.
• 21% of franchisees purchase inputs from local suppliers, while 36% source at least 25% of their intermediate goods locally.
• 65% of franchisees donate to local charities, similar to the 66% of all small businesses.
• Franchisees donate 6% of their profits on average, which is also in line with small business norms.
• $1.5 billion was donated to charity by U.S. franchised businesses in the year before the pandemic, and $900 million was raised over the same period.
• 18 million hours of volunteering were sponsored by franchised businesses in 2019, valued at hundreds of millions of dollars to society.

Methodology

• Data Sources: Homebase payroll data and the franchise census survey.
• Homebase Data: Includes 3,700 franchise and 137,000 non-franchise small businesses.
• Survey Sample: Over 4,000 franchisees were surveyed, covering a wide range of industries and business sizes.
• Analysis Focus: Wage comparison, training hours, and community impact.
• Timeframe: Data from 2018-2019, with most questions referring to the year before the pandemic.

Conclusion

The report concludes that franchising is a valuable business model that:

• Matches or exceeds non-franchise small businesses in terms of pay, benefits, and training.
• Supports entrepreneurship, particularly among new entrepreneurs and women.
• Strengthens local economies through local employment, procurement, and charitable contributions.

These findings suggest that franchising is not only a growth strategy for companies but also a beneficial model for workers and communities.

Appendix Notes

• Methodological Appendix: Includes details on the franchise census, Homebase data, and regression analysis.
• Homebase Data: Provides hourly wage data and workforce information for small businesses.
• Sample Size: Over 141,000 companies were included in the analysis, with 3,700 identified as franchises.
• Limitations: The Homebase dataset lacks worker-level demographic data (age, race, sex, education, experience), which limits the depth of analysis on certain aspects.

References

• Cappelli, P., & Hamori, K. (2008) – Study on franchise and independent business practices.
• Krueger, A. B. (1991) – Analysis of wage rates in fast-food restaurants.
• Weil, D. (2014) – "The Fissured Workplace" – argues that franchising can lead to lower labor costs.
• Sowell, R. (1987) – Emphasizes the value of training in entry-level jobs.
• Oxford Economics – Provides economic forecasting and modeling to businesses and institutions globally.