Franchise Industry Statistics

If you’re considering owning a franchise, you’re probably deep in research. What are the franchise success statistics? What are the franchise failure statistics? Does it make sense for you to open a new franchise location or pursue a franchise resale? As a leader in home service franchising, Neighborly is sharing today’s top franchise industry statistics to help inform your next career move.

National Franchise Statistics

Consider the following franchise success statistics and other interesting facts about franchises in the US:

  • According to 2019 research based on official census data, the two-year franchise success rate is about 8% higher than the independent business success rate. The one-year survival rate for franchises is about 6.3% higher (Francine Lafontaine, Journal of Economics & Management Strategy).
  • Most franchise owners are men. However, female franchise ownership jumped by 83% between 2011 and 2017 and is still growing (Entrepreneur).
  • 5.3% of small businesses are franchises, and 9.6% of larger employers are franchises (SBE Council).
  • About 44% of franchise owners have a bachelor’s degree (WSJ.com).
  • About 14% of all franchisees are veterans. In 2017, veterans owned 66,000 franchises (Entrepreneur).
  • The US franchise sector is comprised of more than 300 different industries (US Census Bureau).
  • Franchises accounts for about 3% of national GDP (International Franchising Association).
  • The types of franchises with the most business units are these: limited-service restaurants, gas stations, full-service restaurants, hotels/hospitality, and new car dealers (US Census Bureau).

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The Energy of an Independent Business. The Experience of a National Brand.

Interested in franchising? Neighborly offers franchise opportunities nationwide in unique home service niches. With the rise of home repair, improvement, and remodeling activity in the US, our brands are stronger than ever before.

Learn more about Neighborly brands today, or contact us to discuss your career goals.

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