Franchise Statistics
Source: IFA
http://www.franchise.org
- 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.