Franchise Facts

• More Then $800 Billion in Annual Sales In The U.S.



• Total Franchise Sales To Reach $1 Trillion By The Year 2000



• There Are Approximately 550,000 Franchises In The U.S.
  
  
• Franchise Businesses Currently Account For 42% Of All Retail Sales In The U.S.
  
  
• More Than 8 Million People Are Employeed By Franchise Businesses With An Average Of 8-14 Employees Per Business
  
  
• The U.S. Department Of Commerce States That 90% Of Franchises Are Still In Operation After 10 Years, Compared To Just 18% For Other Forms Of Small Business
  
  
• Franchised Businesses Create More Than 170,000 New Jobs Each Year
  
  
• A 1999 Study By The U.S. Chamber Of Commerce Found That 86% Of Franchises Opened Within The Last 5 Years Were Still Under The Same Ownership And That 97% Of Them Were Still Open For Business
  
  
• 1 Out Of Every 12 Businesses Is A Franchised Business
  
  
• A U.S. Department Of Commerce Study Conducted From 1971 To 1997 Showed That During That Time, Less Than 5% of Franchised Businesses Were Closed Each Year
  
  
• A New Franchised Business Is Opened Every 8 Minutes Of Every Business Day
  
  
• A Study By The U.S. Small Business Administration Revealed That 62.2% Of All New Businesses Failed Within Their First 6 Years Of Business
  
  
• A Recent Gallup Poll Of Franchisee's Found That More Than 94% Considered Themselves Successfull, And That More Than 75% Would Buy Their Franchise Again If They Had To Do It Over
  
  
• 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



• Over 75 different industries use franchising to distribute goods and services to consumers.



• Average initial investment level for nearly 8 out of 10 franchises, excluding real estate, is less than $250,000.


• Average royalty fees range from 3% to 6% of monthly gross sales.



• Most franchise companies have fewer than 100 units.



• Average length of franchise contract is 10 years.



• Top 10 Franchise Industries:
  
  
  1. Fast Food
  2. Retail
  3. Service
  4. Automotive
  5. Restaurants
  6. Maintenance
  7. Building & Construction
  8. Retail - Food
  9. Business Services
  10. Lodging