Here Statistics Why Franchises are so Successful.
From January, 2000 to December, 2004 the index that tracks the performance of the top 50 franchisors increased 34.5% compared to a drop of 20.1% in the S&P 500 over the same period.
A 1999 study by The United States Chamber of Commerce found that 86% of franchises opened within the last five years were still under the same ownership and 97% of the were still open for business.
A U.S. Department of Commerce study conducted from 1971 to 1997 showed that during that time less than 5% of franchise businesses were closed each year. A U.S. Small Business Administration study conducted from 1978 to 1998 found that 62% of non-franchised businesses closed within the first 6 years of their existence due to failure, bankruptcy, etc.
Total sales by franchised businesses are projected to reach over $2.2 Trillion, this year.
1 out of every 10 businesses is a franchised business.
A new franchised business is opened every 8 minutes of every business day.
In 2000, the median gross annual income, before taxes, of franchisees was in the $75,000 to $124,000 range, with over 30% of franchisees earning over $150,000 per year. These numbers have increased approximately 4% each year since.
According to the February 2005 article by the National Federation of Independent Business (NFIB), 1 of 4 small businesses with employees have their primary location at home, 85% of small firms are operated by owner-managers.