Franchise Opportunities

Thinking about a Franchise Business?  Start with the facts.

Are you researching whether or not a franchise opportunity is right for you?

  • 55% of all Americans want to be their own boss.
  • 37% of all households are involved in small business.
  • 70% of all high schools students want to start a business.
  • 1 out of every 25 adults is currently starting a business.

U.S. SALES:

  • More than $800 billion in annual sales
  • 40.9% of all retail
  • Total franchise sales over 2.3 Trillion to the economy
  • Franchise Businesses have $660.9 Billion of annual payrolls, or 12.5% of all private sector payrolls in the United States.

FRANCHISE GROWTH:

  • 1 in 12 business establishments is a franchise
  • A new franchise opens every 8 minutes of every business day
  • There are approximately 3000 different Franchisors (Franchise Business Companies) operating in the U.S today.
  • Over 900,000 Franchised businesses.
  • Over 300 Franchise Business Categories

EMPLOYMENT:

  • More than 21 Million people are employed by franchise businesses, or 15.3% of all U.S. jobs.
  • 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 TRENDS:

  • Economic slowdown and skepticism about job security is driving franchising.
  • The franchise industry today is breaking away from the “Mom & Pop” industry of the past and is being replaced by corporate executives. 50% of all franchises are multiple unit owners.
  • 87% of franchisors indicated that lead quality is up this year an average of 50% over the previous year.
  • Of the 47% using broker referral networks (up 3% over last year), 50% have chosen deals with them.
  • A recent Gallup Poll of Franchisees found that more than 94 percent considered themselves successful and that more than 75 percent would buy their franchise again if they had it to do over again.
  • The average pre-tax gross income was $1124,000

 

The cost of buying a franchise:

Franchises are more affordable than you think. Typically $50,000 is needed to readily invest with the ability to finance the rest. Many finance options are available and we can help you find financing.

Average Initial Investment Range

Percentage

Under   $50,000

13%

$50,001   to $100,000

17%

$100,001   to $250,000

28%

$250,001   to $500,000

23%

Over   $500,000

18%

  • The average initial investment is $250,000, excluding Real Estate
  • The average royalty fee paid by franchisees range from 3% to 6% of monthly gross sales
  • The average length of a franchise contract is 10 months

Source – FranData