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 school 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 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 6% to 10% of monthly gross sales
  • The average length of a franchise contract is 10 years

Source – FranData