Recession Proof Industry
From 2001 to 2008, franchising grew by 40 percent, according the International Franchise Association. A report prepared by PricewaterhouseCoopers for the Association showed that with the economy in a tailspin in 2008 and 2009, franchising saw only a slight decline of one-tenth of one percent. The consulting firm expects franchising to start growing again this year at around a 3 percent clip or an increase of nearly $24 billion over 2009.
Just a few more reasons why franchising is so successful…
- Landlords love franchises because of their 97% success rate. Landlords are very willing to rent their best spaces to franchise business owners.
- A very recent Franchise Times magazine survey of franchise owners found that an amazing 90% would recommend franchise ownership!
- A study by The United States Chamber of Commerce found that 86% of franchises opened within the last five years were still under the same ownership and 97% of the were still open for business. Amazing stats for businesses in the last 5 years!
- A U.S. Small Business Administration study found that 62% of non-franchised businesses closed within the first 6 years of their existence due to failure, bankruptcy, etc.
- Total sales by franchised businesses are projected to reach over $2.2 trillion this year.
- 1 out of every 8 businesses is a franchised business.
- A new franchised business is opened every 8 minutes of every business day.
- Franchises account for 42% of all retail sales, a number expected to grow to 50% in the next decade.
- According to a February article by the National Federation of Independent Business (NFIB), 1 of 4 small businesses with employees have their primary location at home, and 85% of all small firms are operated by owner-managers.