Franchising Statistics

Facts and Figures About Franchise Businesses

The decision to open a franchise business is extremely research-intensive. Business owners, investors, and entrepreneurs considering their options need to weigh the risks and rewards, and consider the statistics before they make their decision.

If you are considering opening a franchise business, consider the following franchise facts, figures, and statistics:

  • According to Entrepreneur Magazine, “Success rates for franchises are greater than 90%, making this the lowest failure rate of any type of business.”
  • Research found that while 20% of individual startups were still in operation after 7 years in business, franchised businesses were still operating at a rate of 91%. (
  • A majority of franchise owners are men (71.9%) while women make up 28.1% of franchise owners. (
  • The median age of franchise owners falls between 45 and 54 years old. 12% of franchise owners are younger than 34 and 28% are 55 years and older. (
  • A majority of franchise owners have a Bachelor’s Degree – about 44%. Franchisees that possess advanced degrees comprise about 19% of franchise owners, and U.S. military veterans make up about 12% of franchise owners. (
  • Franchise establishments comprise about 10% of all business establishments. “All establishments” = 4,336,046, while “total franchise establishments” = 453,326. (U.S. Department of Commerce)
  • There are approximately 28,572 service industry franchise businesses. Accommodation & Food Services franchises comprise the largest portion of the total franchise business sector. (U.S. Department of Commerce)

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