Success of Franchising

RECESSION PROOF INDUSTRY
From 2001 to 2008, franchising grew by 40 percent, according the International Franchise Association.  A report prepared by PricewaterhouseCoopers for the Association showed that with the economy in a tailspin in 2008 and 2009, franchising saw only a slight decline of one-tenth of one percent. The consulting firm expects franchising to start growing again this year at around a 3 percent clip or an increase of nearly $24 billion over 2009.
A FEW MORE REASONS WHY FRANCHISING IS SO SUCCESSFUL
Landlords love franchises.  With a 97% success rate, the franchise is the only tenant the property owner wants.  Best locations = Most successful business.

A very recent Franchise Times magazine survey of franchise owners found that an amazing 90% would recommend franchise ownership!  What a landslide.

A 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 showed that during that time less than 5% of franchise businesses were closed each year. 

A U.S. Small Business Administration study 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 8 businesses is a franchised business.

A new franchised business is opened every 8 minutes of every business day.

Franchises account for 42% of all retail sales, a number expected to grow to 50% in the next decade.

According to a February article by the National Federation of Independent Business (NFIB), 1 of 4 small businesses with employees have their primary location at home, and 85% of all small firms are operated by owner-managers.


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