- Franchise businesses account for nearly 50% of all retail sales in the United States.
- Franchise businesses employ more than 14 million Americans
- There are an estimated 5,000 franchise companies operating in the U.S. doing business through nearly 500,000 retail outlets.
- Seventy-Five industries use franchising to distribute goods and services to consumers.
- 1 out of every 12 business is a franchised business.
- Total sales by franchised businesses is approaching 2-trillion dollars.
- A U.S. Department of Commerce study conducted from 1971 to 1997 showed that during that time less than 5% franchise businesses were closed each year.
- A 1999 study by The United States Chamber of Commerce found that 86% of franchises opened within the last five years were still under the same ownership and 97% of them were still open for business.
- Compare that to a U.S. Small Business Administration study conducted from 1978 to 1998, which found that 62% of non franchised businesses closed within the first 6 years of their existence due to failure, bankruptcy, etc.
- A new franchised business is opened every 8 minutes of every business day.
- In 2000, the median gross annual income, before taxes, of franchisees was in the $75,000 to $124,000 range, with over 30% of franchisees earning over $150,000 per year.
- According to the February, 2005 article by the NFIB, 1 of 4 small businesses with employees have their primary location at home. 85% of small firms are operated by owner-managers.
- From January, 2000 to December, 2004 the index that tracks the performance of the top 50 franchisors increased 34.5% compared to a drop of 20.1% in the S&P 500 during the same period.
By using the aid of a professional franchise consultant, you will able to understand how these franchise statistics may impact your search for a business.
Source: U.S. Dept. of Commerce
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