Franchise Statistics

Source:  IFAIFAMember_IFA_logo

  • Franchising creates almost $2,000,000,000,000 (2 trillion) revenue every year — worldwide. Enough to:
    – equal the 4th largest GNP in the world
    – blanket the State of Massachusetts (7,600 sq. miles)
    – circle the earth 6,500 times
    – stack 137,000 miles high (over 1/2 way to the moon)
  • Franchise businesses account for about 50% of all retail sales in the United States.
  • Franchise businesses employ more than 15 million Americans.
  • More than 75 industries use franchising to distribute goods and services to consumers.
  • 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.
  • 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 U.S. 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 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.
  • 1 out of every 12 businesses is a franchised business.
  • A new franchised business is opened every 8 minutes of every business day.

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