Franchise Facts

    • According to Franchise World Magazine, a franchise business has a 92% success rate after 5 years compared to a 23% success rate of an independent business after the same period of time.
    • There is only one Franchise bankruptcy to every 40 independent business bankruptcies in North America (5,000 vs. 200,000 annually, respectively).

  • A Franchise Times survey indicates that 90% of their respondents recommend franchise ownership. In addition, a full 87% are satisfied with their franchise experience and only 4% expressed they were not at all satisfied.
  • The U.S. Census Bureau reports franchise businesses accounted for 10.5 percent of businesses with paid employees in the 295 industries for which franchising data were collected in 2007. Of the 4.3 million total establishments surveyed, 453,326 were either franchisee or franchisor-owned businesses.
  • The U.S. Census Bureau also reports franchise businesses accounted for nearly $1.3 trillion (16.9%) of the $7.7 trillion in total sales for these industries, $153.7 billion (9.6%) out of the $1.6 trillion in total payroll, and 7.9 million workers (13.4%) out of a total workforce of 59.0 million.
  • There are more than 300 different industries and business categories that use the franchising business model as a means to distribute goods and services.
  • There are an estimated 3,000 different franchisers (franchise business companies) operating in the U.S. today.
  • Most franchise companies have fewer than 100 units.
  • One out of every 12 businesses is a franchised business.
  • A new franchised business is opened every 8 minutes of every business day.
  • The average initial franchise investment is $250,000- excluding real estate.
  • The average royalty fees paid by franchisees range from 3% to 6% of monthly gross sales.
  • The average length of a franchise contract is 10 years.
  • Top franchise industry- Fast Food Franchises
  • Top franchise company- McDonalds
  • From January, 2000 to December, 2010 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 over the same period
  • Franchise businesses are the #1 choice of businesses during a recession, only because they are proven systems
  • US Department of Labor data (2010):
      • Today’s earner will have 10 – 14 jobs by the age of 38
      • 1 in 4 workers has been with their current employer for less than one year
      • 1 in 2 have been there less than 5 years
      • The average length of employment in the US is 2.5 years
      • As of May 2011, the average (mean) duration of unemployment is now 40 weeks

WHY TAKE THE RISK OF CONTINUING GOING THROUGH A JOB SEARCH EVERY TWO AND A HALF YEARS?

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