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U.S. Sales |
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Total franchise sales in 2000 were over $1 trillion. |
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Nearly 50% of all retail sales. |
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Doing business in 70 industries. |
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Employment |
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The total number of people employed by franchising is 8 million, with 8 to 14
employed per business. |
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Franchised businesses create more than 170,000 new
jobs each year. |
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The Trends |
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Economic slowdown and skepticism about job security is driving franchising. |
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The franchise industry is breaking away from the "Mom
& Pop" industry of the past and is being replaced by corporate executives. |
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Of all franchises today, 50% are multiple unit
owners. |
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Franchise
Growth |
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1 in 12 business establishments is a franchise. |
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A new franchise opens every 8 minutes of every
business day. |
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There are approximately 3,300 Franchisors and over
500,000 franchise units. |
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Success Studies |
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According to the U.S. Commerce Department, fewer than 5% of Franchises were
terminated on an annual basis. |
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In a study by Arthur Anderson & Company of 366
franchise companies, nearly 97% were still in business after 5 years. |
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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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