16 Helpful Franchise Ownership Statistics
Thinking about diving into the world of franchise ownership? You’re not alone!
The franchising industry continues to grow, with new opportunities popping up in new markets and sectors nearly everyday.
But before you take the plunge, you should arm yourself with some key statistics to better understand what you’re stepping into, where opportunities lie, and what it could look like to be a franchise owner.
From survival rates and initial investments to the sectors that are buzzing, we’ve got the numbers to help you make an informed decision. Let’s unpack some essential franchise statistics that could help you in your journey.
We’ve broken these down general franchise statistics and franchise:
General Franchise Statistics
About 10.5% of all businesses in the U.S. are franchises. (Neighborly)
On average, about 300 companies begin franchising operations each year. (Frankart Global)
Just over a third (37 percent) of franchises are classified as “food-related” brands. The remaining 63 percent are spread across 28 other sectors. Altogether, Franchisedirect.com identifies 226 “sub-sectors” in which franchise opportunities are available. (Gold Law Group)
There are 6 major categories in franchising: QSR (Fast Food), Automotive, Retail, B2B, B2C, and Education/Enrichment/Child Related Services
The overall number of franchise establishments will increase by more than 15,000 units in 2024, or 1.9%, to 821,000 units in the U.S. (International Franchise Association)
Franchising will add approximately 221,000 jobs in 2024. Growing at 3.0%, total franchise employment is forecasted to reach 8.9 million. (International Franchise Association)
39% of outlets of the top 200 U.S. food franchises are international, showcasing the global expansion of U.S.-based franchises. (Frandata)
The total output of franchised businesses — the measure of total economic activity in nominal dollars — will increase by 4.1% to $893.9 billion in 2024, up from $858.5 billion in 2023. (International Franchise Association)
Growth in the Southeast and Southwest will outpace the rest of the U.S. franchise market in 2024. (International Franchise Association)
There are over 3,000 different franchise brands in the U.S. (Wolf of Franchises)
Franchise Ownership Statistics
The average age of a franchise owner is 44 years. (Zippia)
20% of average franchise owners tenure is 11+yrs. (Zippia)
The typical length of a franchise agreement is between 10-20 years. (Franchise Gator)
The typical royalty percentage of a franchise is 5% – 6% of the gross revenue, but can range from 4% – 12%. (IFPG)
About 14% of all franchisees are veterans. (Neighborly)
Only around 62% of business owners have a bachelor’s degree. (Neighborly)