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The Success of Franchising
The fitness industry is a $15 billion industry.
Franchise Facts:
• Franchised businesses earn more than $800 billion in annual sales in the United States.
• Franchises account for 40% of all retail sales in the United States.
• In the 21st Century, total franchise sales reached $1 trillion.
• 1 in 12 business establishments is a franchise.
• A new franchise opens every 8 minutes of every business day.
• There are an estimated 550,000 franchises in the United States.
• The average initial franchise investment is $250,000, excluding real estate.
• The average royalty fees paid by franchisees range from 3% to 6% of monthly gross sales.
• Most franchisors have fewer than 100 units.
• The average length of a franchise contract is 10 years.
• Franchise businesses employ more than 8 million people, with an average of 8 to 14 employees per business.
• Franchisors create more than 170,000 new jobs each year.
• More than 75 different industries use franchising as a means to distribute goods and services.
• A government study has indicated that up to 77% of all independent businesses close their doors within 5 years of opening, while only 8% of franchises close in the same time period.
• A Gallup survey has indicated that 94% of franchise owners considered themselves to be successful, and 75% would repeat their franchise again.
• The number of franchised locations in the United States is more than 320,000 in 75 industries.
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