Fun Franchise Facts
HERE ARE SOME FRANCHISE FACTS
- 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
- 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
- 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.
- 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
- 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
- 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)