It is estimated that up to 6000 franchise companies operate in the U.S.
75 industries use franchising to distribute goods and services to consumers.
Franchise business account for nearly 50% of all retail sales in the United
1 out of every 12 businesses is a franchised business.
Franchise businesses employ more than 14 million Americans.
Nearly 86% of all franchises opened in 60 industries during the past 5 years
are still under the same ownership.
A new franchised business is opened every 8 minutes of every business day.
750,000 franchised businesses in the U.S. generate over a $1 trillion each
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.
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.
A US department of commerce study conducted from 1971 to 1997 showed that
during that time less than 5% of franchise businesses were closed each year.
Compare that to a US 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.
U.S. Department of Commerce Seven Year study of Franchise vs. Independent
Start-Up Success Rate:
According to the U.S. Department of Commerce, franchise businesses are exponentially
more likely to succeed than individual new start-ups, particularly if you look
at the figures over a five or seven year period. According to Department of
Commerce figures, after seven years 91% of new franchises are still in business,
as compared to only 20% of individual new start-up businesses.