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Franchising Facts

  • Nearly 10% of all businesses are Franchises.
  • A new franchised business is opened every 8 minutes of every business day.
  • Franchise businesses account for approximately 50% of all US retail sales.
  • Today, more than 75 different industries utilize the concept of franchising in order to distribute their goods and services.
  • A 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.
  • Total Franchised Sales are projected to reach $1.7 trillion this year.
  • In 2000, the median gross annual income, before taxes, of franchisees was in the $75,000 – $124,000 range, with over 30% of franchisees earning over $150,000 per year.
  • Franchises succeed because franchisees have a vested interest in their business.
  • Expansion through franchising happens much faster and more efficient, since the system has been refined by the franchisor and has been fully tested in one or more markets before it is duplicated in new markets.
  • As the system grows, franchisor utilizes collective buying power and is able to buy products at a lower cost. These savings are usually passed on to the franchisees which gives them a pricing edge over their competitors.
  • The system continues to operate well constantly due to the fact that franchisor maintains an on-going supervision, training and support programs for all franchisees.
  • Immediate infusion of capital by franchisee into franchisor’s business allows an ongoing research and product development to better the system’s products and services constantly in order to always keep an edge over the competitors.

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