Why Buy A Franchise?  |  Resources  |  Franchise My Concept

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This section is a collection of items most often asked for; we hope it helps you in your journey to owning a franchise.

The following facts are gathered from multiple sources about the franchise industry. Depending on the source, the data may vary. We have provided these facts here as a starting point, you should rely on your own investigation. We are confident that a thorough investigation will lead you to the conclusion that the franchise industry is big, offers great opportunity and is helping millions achieve their dreams – we hope it is right for you.

Consider:

• It is estimated that there are more than 750,000 franchise locations operating in the United States.
• The franchise industry employs over 18 Million representing about 12% of the total US workforce (146.3 Million)
• Conservatively, franchising contributes over $1 Trillion in Economic Impact.
• It is estimated that 40% of all retail sales come through a franchise location.
• A new franchise location opens about every 8 minutes of any business day.
• A typical franchisee will invest $250,000 (not including real estate) in opening a franchise. However, these costs are coming down for professional service franchises many of whom are home-based businesses.
• Royalty for the use of the brand name and business system of a franchisor typically range from 3 to 8% with 5% being very common.
• Of the estimated over 3,000 franchise concepts in the United States over 2500 (80%) have less than 100 operating units and the majority having less than 50.
• A typical franchise agreement is for 5, 10 or 20 years and is often renewable. The most common being 10 years - renewable.
• The biggest growth segment of the franchise industry is home-based professional services.
• The cost of a college education at a state sponsored college or university is about $12,000 per year and is taking about 5 years (typically leaving a student $60,000 in debt).
• U.S. Census Bureau research confirms that a full-time employee with a bachelor's degree had a median income of $40,287, whereas a high school graduate earned $21,948. Those with master's degrees averaged earnings of $50,021, while doctorates made $64,372. Professional degree holders topped out at $75,722. Certain new professional home-based businesses costs less than $60,000 to start (the price of a college education) and have earnings potential in excess of college graduates with a professional degree in the first couple of years. Franchising may offer a great alternative to a college education for some.
  Success or failure in business depends more on who you are and how you manage your resources than the type of franchise you buy. This is why we recommend you use the services of a professional franchise consultant who will get to know your needs and match you to the right concept.