Franchising as an industry first came into its own during the 1930’s and 1940’s when several hotels and gas stations decided to begin offering new dealers a comprehensive system of operational and marketing strategies. Since that time, franchise and business opportunities have become a national power in America’s economy and a blessing for risk-averse entrepreneurs.
Why is franchising growing so rapidly?
Because franchising works. Franchise business opportunities allow aspiring business owners to pursue their dreams in an industry that they love while eliminating much of the risk and guesswork that usually accompanies a new business start-up. Small business franchise opportunities offer benefits someone would not be able to get starting a business on their own. Today, franchising is a major force in almost every industry imaginable. Franchise ideas and concepts account for a disproportionate share of retail sales throughout the U.S.
Franchising has become the clear choice for entrepreneurs who acknowledge their need for guidance and who value a long-term plan for business success!
- The franchising industry employs over 18 million people in the U.S.
- There are believed to be more than 750,000 franchise businesses in the U.S.
- It is estimated that franchise businesses were responsible for over 1.5 trillion dollars in economic output.
- A new franchise business opens every 8 minutes of every business day.
- According to statistics from the U.S. Department of Commerce, fewer than 5% of franchise outlets fail annually.
- While franchises account for only 8% of all service business, they claim more than 40% of all service-related revenue.
- If current trends are any indicator, the growth of the franchise industry shows no signs of letting up: more than 300 different types of industries and businesses are franchising, which accounts for 35% of all retail goods and services sold.
Statistics provided by the International Franchise Association.