Franchise Facts

• Franchise businesses account for nearly 50% of all retail sales in the United States.

• Franchise businesses employ more than 8.5 million Americans.

• It is estimated that up to 6000 franchises operate in the U.S.

• 75 industries use franchising to distribute goods and services to consumers.

• Average initial investment level for nearly 8 out of 10 franchises, excluding real estate, is less than $250,000.

• 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.

• Compare that to a U.S. Small Business Administration study conducted from 1978 to 1998, which found that 62% of non- franchised businesses closed within the first 6 years of their existence due to failure, bankruptcy, etc.

• There are 750,000 franchised businesses in the U.S.

• Total sales by franchised businesses are projected to reach over $2 trillion, this year.

• One out of every twelve businesses is a franchise.

• Over 300 franchises are sold every business week... that's one every 8 minutes!

• 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.