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The ABC's of Franchising

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According to The International Franchise Association (IFA):

  • Total U.S. franchise sales in 2000 were over $1 trillion.
  • Nearly 50% of all domestic retail sales were from franchised businesses.
  • U.S. franchisors are doing business in over 70 industries.
  • 1 in 12 U.S. business establishments is a franchise.
  • A new franchise opens every 8 minutes of every business day.
  • There are approximately 3,300 franchisors and over 500,000 franchise units.
  • The total number of people employed by franchising is 8 million, with an average 8 to 14 employees per franchised business.
  • Franchised businesses create more than 170,000 new jobs each year.
  • Franchising is the backbone of the U.S. economy.
  • According to the U.S. Commerce Department, fewer than 5% of franchises were terminated on an annual basis.
  • In a study by Arthur Anderson & Company of 366 franchise companies, nearly 97% were still in business after 5 years.
  • In contrast, a study by the U.S. Small Business Administration revealed that 62.2% of all new businesses FAILED within their first 6 years of business.
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