Why Franchising Works?

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?

Franchise businesses account for approximately 40% of all retail sales in the United States.
1 out of every 10 businesses is a franchised business.
A new franchised business is opened every 8 minutes of every business day.
Franchise businesses employ more than 9 million Americans.
There are over 3,000 franchise companies with distinctive concepts operating in the U.S.
More than 19 unique industries use franchising to distribute goods and services to consumers.
Total sales by franchised businesses are projected to reach $2.4 trillion this year.
About 80% of franchises are local or regional brands, while only 16% are global or national franchises.
53% of franchises are owned by multi-unit franchise owners.
Statistically, franchises tend to have lower failure rates compared to independent businesses due to the combination of brand recognition, proven models, training, support, and shared resources.
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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