Editor’s Note: This remains as true as the day it was first written. Looking to hear your franchise stories!
The U.S. Census is a wealth of data that you could mine for weeks on end. Today, however, I’ll be asking you to grab your franchising pickax and join me in that particular branch of the tunnel. Canaries are optional.
At the top of the list of things you might not have known about the franchise industry is its sheer size. According to the Census report, franchise businesses accounted for 10.5 percent of the 43.5 million businesses for which franchising data was collected in back in 2007. That’s not all, either, according to the report:
Additionally, franchise businesses accounted for nearly $1.3 trillion of the $7.7 trillion in total sales for these industries, $153.7 billion out of the $1.6 trillion in total payroll, and 7.9 million workers out of a total workforce of 59.0 million.
Breaking those numbers down further, a full 77.4 percent of franchise establishments were owned by a franchisee, accounting for a total of $1.1 trillion in sales. The remaining 22.6 percent were owned by franchisors and collected some $210.4 billion in sales.
As we mentioned last week, the franchise industry as a whole is still reeling from the recession, but things are getting better. Firms like ours are offering franchise financing and while hurdles to getting those funds exist, the money is indeed out there for those looking to dive into the industry.
It’s clear by looking at the numbers that franchising is a critically important component of any economic recovery in the U.S., as experts note.
“Franchising plays a vital role in our nation’s economy and drives new job creation,” said Ken Walker, chairman of the International Franchise Association and Chairman and CEO of Driven Brands. “These new data demonstrate that franchise businesses provide many options for entrepreneurs who may be considering starting a franchise business. We appreciate the efforts by the Census Bureau to collect and make these data available.”
If you have experience in the franchise industry, tell us about it in the comments.
Photo credit goes to iamwahid at http://www.sxc.hu/photo/1209643