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Vital Franchise Statistics

Published on April 18, 2016

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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
Vital franchise statistics 18apr2016

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