Fun Franchise Facts

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HERE ARE SOME FRANCHISE FACTS

ENTREPRENEURIAL SPIRIT

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  • 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.

JOB CREATION ENGINE

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  • Franchised businesses are the cause of nearly 21 million jobs, or 15.3 percent of all U.S. private-sector jobs.
  • Franchised businesses are the cause of $660.9 billion of annual payrolls, or 12.5 percent of all private-sector payrolls in the United States.
  • Franchised businesses are the cause of $2.31 trillion of annual output, or 11.4 percent of all private-sector output in the United States.

EXPLODING GROWTH IN FRANCHISES

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  • The franchise industry accounts for 40% of all retail sales in the United States.
  • A  franchise business opens approximately every 8 minutes, every day.
  • Approximately 1 in 12 businesses in the United States is a franchise business.
  • Average of royalties paid by Franchisees range from 3% – 6% of monthly gross sales.
  • Job growth in franchising in 2015 is up 2.9%.
  • Franchising by those 55 and older is up 40% since 2007.

FRANCHISING OPPORTUNITIES

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  • A new franchise business opens every eight minutes every business day
  • 1 out of 12: of every businesses in the U.S. are franchise businesses
  • $250,000: average initial franchise investment (excluding real estate)
  • 10 years: the average length of a franchise contract
  • McDonald’s: the top franchise company
  • 50%: of all retail sales in the U.S. come from the franchise industry

ECONOMIC IMPACT OF FRANCHISES

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  • 781,794: the number of franchise establishments in 2015
  • +5.4%: predicted growth in franchise economic output for 2015
  • $889 billion: estimated economic output for franchises this year
  • +5.1%: percent by which GDP of the franchise sector will grow (the economy as a whole is predicted to grow by +4.9%)
  • 3.0%: the percent of the economy that comes from the franchise industry

FRANCHISE EMPLOYMENT

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  • 8.8 million: the total number of direct franchise jobs in 2015
  • +247,000: new direct jobs franchises will create in 2015
  • +235,000:  new direct jobs the franchise industry created in 2014
  • Franchise types predicted to grow the most:
    #1: Quick-service restaurants
    #2: Retail businesses

FRANCHISE EMPLOYMENT DISTRIBUTION:

Food & Hospitality65%(table and full-service restaurants, quick-service restaurants, retail food, lodging)
Services29%(business services, personal services, commercial and residential services, retail products and services)
Real Estate & Automotive6%(brokerages, dealerships, products and parts)

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