By Mark S. Lee
Michigan Chronicle
https://michiganchronicle.com
A quiet but powerful shift is underway in the American economy—and it’s landing squarely in Michigan. According to the 2026 Franchising Economic Outlook, the industry is on track to surpass $920 billion in output while supporting nearly 9 million jobs nationwide. And Michigan has surged into the top 10 states for franchise growth, signaling a pivotal moment for entrepreneurs and communities across the state.
Corporate growth matters, but so does the growth of small businesses and entrepreneurs.
Franchising is rooted in ownership which drives local job creation and economic development by strengthening overall revenue and tax bases.
“Michigan’s rise in franchise growth reflects the resilience of its local entrepreneurs and the enduring strength of the franchising model,” said Katherine Patterson, Vice President, Communications, International Franchise Association. “After years of efforts to diversify the economy and support small businesses, we’re seeing franchise development accelerate across the state—particularly in the last 18 to 24 months.”
That acceleration is being fueled by consumer demand, franchise investment, and a workforce looking to step into ownership. The growth is especially visible within the service industry permeating everyday lives such as quick-service and casual dining, automotive services, health and wellness, and home services.
This growth is happening across Detroit and beyond.
Why?
Franchising lowers the barrier to business ownership. For many, starting from scratch can feel overwhelming; however, franchising offers a path based on providing support and access. This helps to increase the odds of success.
As Patterson puts it, “Franchising has empowered people from all walks of life to go into business for yourself, but not by yourself.”
That distinction matters, especially in today’s economy. The model creates access points for first-time entrepreneurs and career changers who may not have otherwise considered business ownership. It also plays a meaningful role in expanding opportunity.
“The numbers don’t lie,” Patterson added. “Underrepresented groups, such as veterans, women and people of color, are represented as franchisees at a disproportionately higher rate.”
Beyond ownership, franchising is also quietly becoming one of the most consistent job creators in the country, with more than 150,000 jobs projected to be added in 2026 alone. But it’s not just about quantity—it’s about quality and mobility within the workforce.”
“Franchises offer employees stronger wage growth, benefits, and career growth compared to non-franchises,” Patterson noted, pointing to higher rates of access to benefits like health insurance and paid leave.
From a Detroit lens, this trend taps into something deeper—the city’s long-standing “builder” DNA. This is a place where people don’t just work jobs; they build businesses, create opportunities, and invest in their communities.
Franchising aligns directly with that mindset. It allows individuals to own something tangible, operate within a system that works, and scale over time. And increasingly, that’s exactly what’s happening.
Many franchise owners are expanding and becoming significant local employers. That kind of growth doesn’t just impact individual owners—it strengthens entire neighborhoods.
“Franchise businesses play a vital role in job creation and building long-term economic stability in cities like Detroit,” Patterson said. “They are often among the first to invest in revitalizing neighborhoods, creating career-pathway jobs that provide stable income, benefits, and advancement opportunities for residents.”
That local impact is compounded over time. Franchise businesses not only generate jobs but create a pathway to economic self-sufficiency and long-term wealth building.
“By fostering small business ownership and economic self-sufficiency, franchising helps build resilient local economies that can weather challenges and sustain growth for generations,” Patterson added.
For the city and state, the implications are significant. As the state continues to evolve and diversify its economic base, franchising is emerging as a powerful, community-driven growth engine—one rooted in accessibility, scalability, and local ownership.
And in Detroit, that’s more than a trend.
It’s a continuation of a legacy.
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