A Comparative of the Franchise Industry by Year First Franchised

Of approximately 34,400 franchised outlets opened in 2014, 79.4% belonged to systems that began franchising in 2005 or earlier. However, systems that began franchising in 2006 to the present had net outlet growth of 20%.

This comparison is based on the year that each of the 2,264 franchise systems began offering franchises. The median year of 2006 was used as the division point. There are 1,080 systems in the category of systems that began franchising in 2006 to present day,  and 1,184 systems that began in 2005 or earlier.

One of the interesting results of this study reveals that 79.4% of the total number of new outlets opened belonged to systems that began franchising in 2005 or earlier. This group also had more than triple the amount of outlets that had signed but not yet opened, with 18,166 compared to 5,905 for the 2006 to Present group. However, those that began franchising in 2006 or later had 20% net growth versus 1% for systems that began franchising in 2005 or earlier.

The full report includes comparatives in average initial investment, Item 19 FPR disclosure, and Net Growth.