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Facts and Statistics

1 out of every 10 businesses is a franchised business.

A new franchised business is opened every 8 minutes of every business day.

From January 2000 to December 2004 the index that tracks the performance of the top 50 franchisors increased 34.5%. In contrast, the S&P 500 dropped 20.1% in the same period.

A 1999 study by The United States Chamber of Commerce found that 86% of franchises opened within the last five years were still under the same ownership and 97% of the were still open for business.

A U.S. Department of Commerce study conducted from 1971 to 1997 showed that, during that time, less than 5% of franchise businesses were closed each year.

A U.S. Small Business Administration study conducted from 1978 to 1998 found that 62% of non-franchised businesses closed within the first 6 years of their existence due to failure, bankruptcy, etc.

Total sales by franchised businesses are projected to reach over $2.2 Trillion, this year.

In 2000, the median gross annual income of franchisees was in the $75,000 to $124,000 range (before taxes), with over 30% of franchisees earning over $150,000 per year. These numbers have increased approximately 4% each year since.

According to a February 2005 article by the National Federation of Independent Business (NFIB), 1 in 4 small businesses with employees have their primary location at home and 85% of small firms are operated by owner-managers.

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