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Why Franchising Works? |
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There are many reasons but one is absolutely compelling. As noted below, statistically,
franchises tend to have a much higher success rate compared to independent businesses! We live
in a world of difficult new realities ---- downsizing, rightsizing, industry consolidation,
outsourcing overseas and rapidly changing technologies. Most people can't even predict that
they'll keep their jobs. So, what are some of the other reasons that people buy a franchise
business instead of starting their own? |
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Franchise businesses account for approximately 40% of all retail
sales in the United States. |
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1 out of every 10 business is a franchised business. |
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A new franchised business is opened every 8 minutes of every
business day. |
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Franchise businesses employ more than 9 million Americans. |
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There are over 3,000 franchise companies with distinctive concepts
operating in the U.S. |
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More than 19 unique industries use franchising to distribute goods
and services to consumers. |
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Total sales by franchised businesses are projected to reach $2.4
trillion, this year. |
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About 80% of franchises are local or regional brands, while only
16% are global or national franchises. |
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53% of franchises are owned by multi-unit franchise owners |
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Statistically, franchises tend to have lower failure rates compared
compared to independent businesses due to the combination of
brand recognition, proven models, training, support and shared
resources. |
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In 2023, the average gross annual income, before taxes, of
franchisees was in the $98,000 to $109,000 range, with over
40% of franchisees earning over $150,000 per year. |
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