Thinking of Franchising: Here Are The Facts

Thinking of opening your own business? Here are the facts associated with opening a franchise.

There are an estimated 1,500 different franchisors (franchise business companies) operating in the U.S.

There are believed to be more than 750,000 franchise businesses in the U.S.

The franchising industry and businesses employs over 18 million people in the U.S.

In 2004, it is estimated that franchise businesses were responsible for over 1.5 trillion in economic

output.

The franchise industry accounts for 40% of all retail sales in the U.S.

A new franchise business opens every 8 minutes of every business day.

Approximately one out of every 12 businesses in the U.S. is a franchise business.

Franchise fact: More than 75 different industries use franchising as a means to distribute goods and services.

The average initial franchise investment is $250,000- excluding real estate.

The average royalty fees paid by franchisees range from 3% to 6% of monthly gross sales.

Most franchise companies have fewer than 100 units.

The average length of a franchise contract is 10 years.

Top franchise industry- Fast Food.

Top franchise company- McDonalds.