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Franchise Statistics

    The IFA list over 75 industries that use franchising to distribute goods and services to consumers. 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 the International Franchise Association there are over 3,000 different types of franchises.

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

    One out of every 12 businesses is a franchised business.

    A new franchised business is opened every 8 minutes of every business day.

    In 2000 (the latest statistical year reported) the median annual, gross income of franchisees was in the $75,000 to $124,000 range. Over 30% of franchisees reported earnings OVER $150,000 per year.

    There are an estimated 1,500 franchise companies operating in the United States. More than 75 industries use franchising.

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COMPARING A FRANCHISE TO A START-UP COMPANY
Franchise vs. New Start-Up Success Rates
(Statistics compiled from the
US Department of Commerce)

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Year
Franchise
Success
New Start-Up
Success
 
 
1
97%
62%
 
 
3
93%
33%
 
 
5
92%
23%
 
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10
90%
15%
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