The Internicola Law Firm, P.C.

Information for Prospective Franchisors: How “Franchising Sizes-Up” in the Today’s Economy

When faced with the prospect of expanding your business - I mean really expanding - "Franchising" represents an economic model. While Franchising is not right for every business, statistics demonstrate that the role of Franchising in our economy is one of expansion.  The following are some helpful Franchise statistics.

Franchise businesses account for more than 10 percent of all U.S. businesses according to the results of a survey that were released last week. The 2007 Economic Census Franchise Report was the result information collected by the U.S. Census Bureau and the International Franchise Association (IFA) and consisted of information based on 4.3 million businesses with paid employees. 

The Census Bureau report not only showed the importance of franchises in the U.S. economy by showing the number of franchises when compared to the number of non-franchised businesses but also revealed the following U.S. franchise statistics: 

• Franchise businesses account for nearly $1.3 trillion of the $7.7 trillion in total sales 

• Franchisee-owned establishments account for 77.4 percent of all franchise businesses

• Fast-food franchise restaurants account for 125,898 establishments followed by gas stations with convenience stores with 33,391 establishments and full-service restaurants with 30,130 establishments

• New car dealers led in sales for franchise businesses with $687.7 billion followed by gas stations with convenience stores with $131.1 billion and fast-food restaurants with $112.6 billion  

An interesting fact about the statistics we were provided with by the 2007 Census Bureau report is that the top franchise businesses as far as sales and number of franchise establishments go is that both fast-food restaurants and gas stations with convenience stores made the top three in both of these categories with gas stations with convenience stores coming in second place in both categories.

The Census Bureau report gives a clear picture of just how important franchise businesses are in America.  For more information on buying a franchise request a complimentary copy of "An Entrepreneurs Guide to Purchasing a Business or Franchise" or if you would like more information on franchising a business or becoming a franchisor request a complimentary copy of "The Franchise Formula".