Franchise Buyer Profile

Franchise Facts

According to latest 2009 estimates, there are over 3,000 franchises available in 80 industry categories.

Franchised businesses account for nearly 50% of all retail sales in the United States in 2009.

In the year 2000, franchises made up an estimated $1 trillion in annual retail sales.

Franchises account for more than 40% of US retail sales.

More than 8 million people in the United States are employed by a franchise.

One out of every 12 US retail businesses is a franchise establishment.

Franchises become profitable faster than typical start up businesses.

In 1998 there were nearly $850 billion sales of franchised goods and services at over 700,000 US franchise locations.

A Gallup poll reported that nine out of ten franchise owners say they consider their franchise to be either somewhat or very successful.

The report also found that overall satisfaction in owning a franchise business was high among the more than 1,000 franchise owners polled. "Nine of 10 respondents' expectations were either exceeded (18%), mostly met (48%) or somewhat met (24%)."

The franchisees surveyed in this Gallup poll reported substantial levels of gross income, defined as the amount of money remaining after expenses are paid but before paying taxes. The average gross income reported was $91,630 and 25% of franchise owners reported grossing $100,000 or more in the past year.

Statistics from the U.S. Department of Commerce show that from 1971 to 1987, less than 5% of franchise businesses were terminated on an annual basis.

According to a study by Arthur Andersen & Company in 1991, of 366 franchise companies in 60 different industries, nearly 86% of all franchise operations that had opened in the previous five years were still under the same ownership; only 3% of those businesses were out of business.

The U.S. Small Business Administration reports that from 1978 to 1988, 62.2% of all new non-franchised businesses were ended within the first six years of their operation due to failure, bankruptcy, retirement or other reasons.

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