Below are some impressive statistics about the strength and success of franchise enterprises.

  • Franchised businesses account for nearly 50% of all retail sales in the United States.
  • The International Franchise Association has reported that franchising is responsible for 760,000 businesses, 18 million jobs, 14 percent of the private sector employment, and over $500 billion in payroll!
  • According to some estimates, there are over 5,000 franchises available in 75 industry categories.
  • 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.
  • 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.
  • 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.