FRANCHISE FACTS

U.S. Sales

• More than $800 billion in annual sales.
• 40.9% of all retail sales.
• Total franchise sales to reach $1 trillion by the year 2000.

Franchise Growth

• 1 in 12 business establishments is a franchise.
• A new franchise opens every 8 minutes of every business day.
• There are approximately 550,000 franchises in the U.S.

Employment

• More than 8 million people are employed by franchise businesses, with an average of 8 to 14 employees per business.
• From 1975 to 1988 the total number of people employed in franchising nearly doubled, from 3.5 million to 7 million, and the number of persons employed per business increased 80% from 8 to 14.
• Franchised businesses create more than 170,000 new jobs each year.

Success Studies

• According to the U.S. Commerce Department fewer than 5% of franchises were terminated on an annual basis.
• In a study by Arthur Anderson & Company of 366 franchise companies, nearly 97% were still in business after 5 years.
• In contrast, 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.

The Last Recession

Franchising in the Economy, 1991-1993, a study conducted by the University of Louisville, indicated that franchising not only participated in, but helped to lead America out of its recent economic downturn.  As people once again are downsized and re-engineered they will need to replace their employment through franchising.