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Franchise Sales within the U.S.
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Total franchise sales in 2000 were over $1 trillion
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Nearly 50% of all retail sales are through franchises
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Franchises are currently doing business in 70 business verticals
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Employment |
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8 million people are employed by franchises in the U.S., with 5 to 14 employed per franchise |
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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 the growth in franchising |
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The franchise industry is breaking away from the "Mom and 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 in the U.S. |
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Success Studies
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The U.S. Commerce Department says that fewer than 5% of franchises were terminated on an annual basis |
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According to 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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