Vital Franchise Statistics

Published on April 18, 2016

Share Tweet Share

From time to time we’ll publish some important Statistics from Franchisegrade.com that we feel are pertinent to franchisors, franchisees and other participants in the franchise industry.

  • An analysis of 405 Franchise Start-ups from 2010 to 2015 found that 102 were no longer franchising and only 154 franchise systems had opened 5 or more outlets. However, companies that began franchising operating multiple company locations had successful franchise growth. The lesson from all this? Operating company locations provides experience and capital when launching a franchise program.
  • Our FDD database revealed that 40% of franchise systems had 25 locations or less and 53% of systems had 50 locations or less. This represents a significant opportunity for franchise development among the majority of franchise systems.
  • A comparison of Healthy (high performing) to Unhealthy (low performing) franchise systems indicated that the Unhealthy systems received 175% more revenue from rebates than the Healthy franchise systems.
  • From 2010 to 2015 franchisees have invested 5 times more money into the top 10% of compared to the bottom 10% of franchise systems. One can conclude that Unhealthy franchise systems divert franchisee capital from the Healthy franchise systems.
Written by FranchiseGrade.com Team


Thinking about buying a franchise?
Not sure how much can you afford?

Fill out our Franchise Affordability Calculator




Related Articles

New York Times Investigates Subways Abuse of Franchisees

New York Times investigation into the use of questionable practices by one its Franchise Development Agents that culminated in the agent acquiring two of a franchisees Subway stores.

Read More

The Fall of A Giant – Are Subway’s Healthiest Days Behind Them?

Read More

What Sub-Franchising Really Means

Sub-franchising is frequently confused with other franchise models, including area developers, master franchisors, regional developers.

Read More

Maximize Market Penetration and Branding with Multi-Unit Franchisees

Multi-unit franchising grows in popularity, in the Quick Serve Restaurant sector, this model continues to expand into other franchise sectors in popularity.

Read More

The Top 10 Franchise Grade Facts & Figures From 2017

Detailed studies on emerging franchise success rates, errors in Item 20 disclosure and sector performance, Franchise Grade’s reports help you.

Read More

A Road Block to Franchise Growth is Right Under Your Nose

New franchise growth is the top priority for emerging franchise brands. Many of these franchises have an obstacle on the road to more franchise locations.

Read More

Franchisors Need to Avoid Wasting Their Franchisee Leads

When franchisors strategize their system growth, the major focus is placed on the amount and quality of their franchisee leads.

Read More