Today what we have on tap for you is sharing where does the franchise industry currently stand today as far as its breadth and depth. And I think what's really interesting about all of these statistics we're going to go throw out is the amount that they've grown in just a short period of time.
Now I do want to disclaim a couple of things here. Number one, these statistics come from different sources, including Entrepreneur Magazine and the International Franchise Association. What we’ve seen is that the stats are all give-and-take a few on the same franchise industry statistics. So we kind of averaged them out a little bit for these stats we are showing today.
So what I'm going to do is I'm going to read these out and Stacey and I are just going to give you some commentary on these on just how much the franchise industry means to the U.S. economy right now.
In the Franchise industry, the economic output of the franchise establishment in the United States is in excess of $790 billion per year.
That is a tremendous amount of money flowing through these franchises. So, Stacey, what does this mean?
This is a huge number.
It means there are a lot of zeros and numbers don't lie, right? So franchising is a huge part of the economy in the United States. Dave and I always talk about whether should you start a business from scratch or should you look at franchising. And we always encourage our candidates to look at all of their options, but the numbers and the stats don't lie. So the number that Dave's sharing with you 790 B, with a billion, dollars of economic output, that's a lot of sales being made, attributed, and passing through a portion to the franchises themselves.
I think the big thing here is how much this has grown just over the last 10 to 15 years, it really has become a much larger part of our economy.
Statistic number two. We, a lot of times allude to this in some of our other webinars and podcasts.
Right now they say there are over 4,300 franchise brands out there.
I actually believe that. I mean, I'm starting to even come across new brands that I've never heard of just popping up out of nowhere. So Stacey, what are you finding?
It is amazing. I never knew it myself because when you're driving down the road and you look at those businesses on the side of the road, many times, you may think it's just like a mom-and-pop business, but so many of them are franchises. I think it's going to tie into another stat that you're going to share with us, but they represent every different industry.
Yeah, no kidding. It's funny because the next stat I think is low to me. We've seen numbers different than this, which I'll share with you after I share this stat.
There are 750,000 plus franchise establishments currently in the United States.
These are the franchises that you see when you drive down the street. Now I heard statistics as high as 950,000. Maybe that's changed. Maybe COVID. There are obviously a lot of them that may have been not essential businesses and they just haven't come back. Who knows? But anyway, it's a lot and you drive down the street, you see 'em everywhere.
Again, another statistic that we frequently reference in our podcasts and some of our webinars and other content is the number of industries that the franchise business encompasses.
Again, another statistic that we frequently reference in our podcasts and some of our webinars and other content is the number of industries that the franchise business encompasses.
Today they're saying there are over a hundred plus industries represented by franchises.
This is where I really have seen the growth. There are a lot of new franchises coming out, and a lot of new industries. Although to clarify I won't say new industries, but in industries where there weren't franchises there before. So I think it's really interesting that not only are the number of franchises growing but so is the number of industries you can find a franchise in.
There's business-to-consumer there's business-to-business. If you can think of the industry, there is a franchise for it. There are franchises for ATMs, or Bitcoin, right? There are franchises for crime scene cleanup. There are franchises for absolutely everything out there.
Now, another interesting statistic.
This is where I really have seen the growth. There are a lot of new franchises coming out, and a lot of new industries. Although to clarify I won't say new industries, but in industries where there weren't franchises there before. So I think it's really interesting that not only are the number of franchises growing but so is the number of industries you can find a franchise in.
There's business-to-consumer there's business-to-business. If you can think of the industry, there is a franchise for it. There are franchises for ATMs, or Bitcoin, right? There are franchises for crime scene cleanup. There are franchises for absolutely everything out there.
Now, another interesting statistic.
The number of jobs franchising directly creates is over 1 million jobs.
So that’s a lot of jobs. You find a lot of people working in these franchises that we're telling you that you see as you're driving down the street. So it is a massive growth industry for jobs in this country as well.
The final statistic that I actually found to be super interesting, and I really didn't even have a concept on this when I had first seen it or heard it.
So that’s a lot of jobs. You find a lot of people working in these franchises that we're telling you that you see as you're driving down the street. So it is a massive growth industry for jobs in this country as well.
The final statistic that I actually found to be super interesting, and I really didn't even have a concept on this when I had first seen it or heard it.
Nearly 3% of the amount of the U.S. nominal GDP franchising represents.
So that means that it's 3% of our GDP in this country and I'm guessing and growing rapidly. So if you're interested in franchising, it's a wonderful place to be. It's a wonderful place to look if you're interested in learning more about business and becoming an entrepreneur. These are businesses that have established business systems in place to help you be successful. They now represent a large part of our economy and probably going to continue to grow going forward.
So the final statistic is not really a statistic.
So that means that it's 3% of our GDP in this country and I'm guessing and growing rapidly. So if you're interested in franchising, it's a wonderful place to be. It's a wonderful place to look if you're interested in learning more about business and becoming an entrepreneur. These are businesses that have established business systems in place to help you be successful. They now represent a large part of our economy and probably going to continue to grow going forward.
So the final statistic is not really a statistic.
If you are interested in learning more about franchise ownership, you should contact us.
You should let us know what you're interested in and why you're interested in it. We will certainly love to reach out to you and help you learn more about this industry.
Franchising is just such a phenomenal opportunity. What we didn't mention is that we own a franchise ourselves. We have for the past 16 years. And therefore when we're helping candidates such as yourself learn about franchising, we practice what we preach. So all the numbers and the stats that we shared with you today, we're part of that in this amazing industry called franchising.
If you're going to go into business for yourself, wouldn't you rather be in business for yourself, but not by yourself and with a franchise? You get that because you're getting a proven system and all of the support, training and resources to set you up for success. What makes it work is being matched to a franchise that makes sense for you. That's what we do. We look at your transferable skills, interests, resources, and passion, and match you to a franchise that could be a great fit. We would love to talk to you.
We talk to candidates in all realms of life, people who are looking to transition out of their corporate job and they're just miserable. We have veterans that we work with. We have husband-wife teams that we work with. So no matter where you are, if you want to get to your Next Level, please reach out to us.
You should let us know what you're interested in and why you're interested in it. We will certainly love to reach out to you and help you learn more about this industry.
Franchising is just such a phenomenal opportunity. What we didn't mention is that we own a franchise ourselves. We have for the past 16 years. And therefore when we're helping candidates such as yourself learn about franchising, we practice what we preach. So all the numbers and the stats that we shared with you today, we're part of that in this amazing industry called franchising.
If you're going to go into business for yourself, wouldn't you rather be in business for yourself, but not by yourself and with a franchise? You get that because you're getting a proven system and all of the support, training and resources to set you up for success. What makes it work is being matched to a franchise that makes sense for you. That's what we do. We look at your transferable skills, interests, resources, and passion, and match you to a franchise that could be a great fit. We would love to talk to you.
We talk to candidates in all realms of life, people who are looking to transition out of their corporate job and they're just miserable. We have veterans that we work with. We have husband-wife teams that we work with. So no matter where you are, if you want to get to your Next Level, please reach out to us.
What's Your Next? - Podcast
 | Author BioI’m Stacey Riska aka “Small Business Stacey”, your franchise placement specialist. I help aspiring business owners find the PERFECT franchise so they can get to the next level in life and business. |
