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From about 100 franchising companies in 1950 to approximately 2,500 franchising companies today --in the U.S. alone-- franchising has continued to grow, with more than 700,000 franchised business units. A report from Price Waterhouse Coopers found that franchised businesses are responsible for: |
- $1.5 trillion in total economic output
- 10% of the U.S. private sector economy
- 1/3 of all retail sales in the U.S.
- 14 percent of the private sector jobs
- A new franchise outlet opening every 7 minutes of each working day
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And the future is bright with promise. As the United States continue to flourish, the outlook for franchising in the coming years and beyond is ripe for growth. As the population grows, so do their needs for a wide variety of products and services, almost all of which fit into the franchise arena. The U.S. Department of Commerce predicts that by 2010 one out of every two businesses will operate under some form of franchise system! Already, over 300 types of businesses are franchising, and a new franchise outlet opens every 7 minutes of each working day.
Statistics provided by the U.S. Government’s Small Business Administration (SBA) show that at least one in three new businesses don’t survive their first two years, but these statistics don’t reflect the state of the franchise industry. “According to the last statistics I saw, four out of five franchises succeed,” said Blake Smith, president of the Decor Group, a Lubbock, Texas, green industry franchise, which has 367 franchises in 48 states and Canada. “Many businesses flounder and eventually fail because they don’t have the safety net a franchise can provide.” |
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