Franchise Statistics
- Franchised businesses account for nearly 50% of all retail sales in the United States.
- The International Franchise Association has reported that franchisingis responsible for 760,000 businesses, 18 million jobs, 14 percent of the private sector employment, and over $500 billion in payroll!
- From January, 2000 to December, 2004, 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.
- 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 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.
- A U.S. Small Business Administration study conducted from 1978 to 1998 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.
- According to the February 2005 article by the National Federation of Independent Business (NFIB), 1 in 4 small businesses with employees have their primary location at home, 85% of small firms are operated by owner-managers.
- Franchise businesses account for 3.0% of U.S. gross domestic product (GDP). Growth of GDP originating in the franchise sector will increase 4.8% in 2012, from $439 billion to $460 billion.
- The number of direct jobs rebounded in 2011 to post a gain of 1.9%. In 2012, franchise business employment will increase by 2.1%, from 7,934,000 jobs to 8,102,000 jobs – an increase of 168,000 jobs.
- According to the February 2005 article by the National Federation of Independent Business (NFIB), 1 in 4 small businesses with employees have their primary location at home, 85% of small firms are operated by owner-managers.
- The minority ownership rate for franchised businesses increased from 19.3 percent in 2002 to 20.5 percent in 2007. In 2007, 20.5% of franchised businesses were owned by minorities, compared to 14.2% of non-franchised businesses.
IFA Introduction to Franchising
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