Scope of Franchising
Franchising has become an integral part of our society in doing business:
- The field of franchising contributes in excess of $1 trillion dollars yearly to the United States Gross Domestic Product.
- There are over 700,000 businesses which are franchises in the U.S.
- One of every six people employed in America today are employed in a franchise business.
- The United States Department of Commerce estimates that by the year 2010 at least one-half of all retail sales in America will come from franchising.
- A significant number of large United States-based businesses such as McDonald’s, General Motors, Holiday Inn, Coca-Cola, which are heavily involved infranchising, are expanding internationally at an ever increasingly rapid rate.
- To indicate economic size in a different way, franchise businesses employ about the same number of people in 2001 as did all manufacturers of durable goods, such as computers, cars, trucks, planes, communications equipment, primary metals, wood products, and instruments.
- What Happens In Franchised Businesses:
- Franchised businesses operated 767,483 establishments in the United States in 2001, counting both establishments owned by franchisees and establishments owned by franchisors.
- They provided 9,797,117 jobs, met a $229.1 billion payroll, and produced $624.6 billion of output.
- Hence, franchised businesses accounted for 7.4% of all private sector jobs, 5.0% of all private-sector payrolls, and 3.9% of all private-sector output.
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