Quick Franchise Facts Franchising Industry Statistics:

Below you will find some interesting facts and stats about the franchising business industry in the USA that validates the major role the franchise business model plays in our national economy. You can view a list of popular franchise FAQS (frequently asked questions) here.

Popular Franchise Facts & Stats:

  • There are an estimated 3,000 different franchisers (franchise business companies) operating in the U.S. today.
  • It is estimated that there are over 900,000 franchise businesses across 300 business categories in the U.S. which provide nearly 18 million jobs and generate over $2.1 trillion to the economy.
  • According to The U.S. Census Bureau franchises accounted for 10.5 percent of businesses with paid employees in the approximate 300 industries that franchising data was collected from in 2007.
  • According to the IFA (International Franchise Association) almost 4% of all small businesses in the USA are franchises.
    There are More than 300 different industries and business categories that use the franchising business model as a means to distribute goods and services.
  • It is estimated that the franchise industry accounts for approximately 50% of all retail sales in the US.
  • A new franchise business opens every 8 minutes of every business day.
  • Approximately one out of every 12 businesses in the U.S. is a franchise business.
  • The average initial franchise investment is $250,000- excluding real estate.
  • The average royalty fees paid by franchisees range from 3% to 6% of monthly gross sales.
  • Most franchise companies have fewer than 100 units.
  • The average length of a franchise contract is 10 years.
  • Top franchise business industry- Fast Food.
  • Top franchise company- McDonalds

Ready to start a franchise business? You can research a number of top franchises for sale here.