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Saturday, July 13, 2024

4 Interesting Statistics to Know on the Franchise Industry

Franchises are appealing business opportunities because you get the opportunity to be the entrepreneur you’ve always dreamt of while tapping into brands and business models that have already proven to garner a customer base and become profitable. That being said, there’s still a lot of work and research that needs to be done on your end before you purchase your own franchise. Let’s take a look at four interesting statistics involving the franchise industry that can tell you more about the requirements and challenges that come with owning a franchise business.

1. 9.3 Percent of Franchise Businesses That Cost Less Than $25,000 Failed Over the Last Five Years

Purchasing your own franchise business is something that requires careful consideration, especially when it comes to cost. That being said, it’s important to consider how cost plays into your success. There’s been an average 3.9 percent closure and termination rate for franchises over the last five years, but that number jumps up to a whopping 9.3 percent for anything below $25,000. This makes sense. After all, a cheaper franchise is one that might not have the same brand power and recognition as more desirable and expensive franchises.

2. Around 62 Percent of Franchisees Have a Bachelor’s Degree

Too many prospective franchisees go into the industry without the necessary experience or background, which can lead to failure. Statistics reveal that around 62 percent of franchisees have a bachelor’s degree. Why is this important? Whether you went to school for general business, accounting, or something else, having the foundational knowledge you need to start a franchise business can help you better prepare for the future and ensure you know what you need to do to keep your franchise business up and running.

3. A New Franchise Opens Every Eight Minutes

Franchises are among some of the most common businesses around. In fact, it’s estimated that a new franchise opens up every eight minutes during a single business day! That’s a lot of competition. If you’re worried about running into too much, it’s important to conduct market research and to think seriously about location. You don’t want to be next to one of those many similar or same franchises and risk not getting enough business once you decide to officially launch your franchise business.

4. 92 Percent of Franchisees Are Still Going Strong After Two Years

There’s a lot of concern about whether or not a franchise will make it, which is reasonable. However, while some statistics can serve as a warning, there’s still a lot of hope out there for those who are serious about running a franchise. While 20 percent of independent businesses typically close after two years, a massive 92 percent of franchisees are going strong after this two-year mark. This illustrates that with hard work and planning, you too can run your own profitable franchise business.

The more you know about franchises, the easier it becomes to understand and run them. Use the guide above to dive into more statistics about the franchise industry and how you can leverage these to move forward with greater ease and success.

Uneeb Khan CEO at blogili.com. Have 4 years of experience in the websites field. Uneeb Khan is the premier and most trustworthy informer for technology, telecom, business, auto news, games review in World.

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