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State Facts on Franchising
  • Fifteen states have franchise investment laws that require franchisors to provide pre-sale disclosures, known as “offering circulars,” to potential purchasers.
  • Thirteen of these state laws treat the sale of a franchise like the sale of a security. These thirteen states typically prohibit the offer or sale of a franchise within their state until a franchise offering circular (UFOC) has been filed on the public record with, and registered by, a designated state agency.

  • Two of the fifteen states do not require a filing of offering circulars.

 
 

 

 

 

 

 
Franchising Facts
  • Every year $1 trillion in products and services are sold through franchises in the United States.

  • 35% of all retail products and services are sold through franchises.

  • There are over 650,000 individual franchise outlets in the United States.

  • A new franchise opens every 5 minutes.

  • Over 300 different types of industries and businesses are franchising.

The Future of Franchising

  • Conversions of Company-Owned Establishments to Franchising. 

  • Fortune 1000 Companies will soon be enter into Franchising.

  • Large corporations will turn to franchising not only for its benefits but also to keep their best employees.

  • International Franchising will catapult.

  • Many U.S. companies will embrace franchising to expand overseas. More foreign companies with their desire to tap the huge American market, and will thus start franchising in the U.S.

  • Sales through franchise outlets are currently at $1 trillion in the U.S., and is expected to reach $2 trillion dollars by the year 2010. 

  • 35% of all retail and service sales come from franchise outlets. It is estimated to reach 40-50% by 2010.

  • Currently there are 650,000 franchise units in the U.S. It is predicted that by 2010 this number will reach 1,000,000.

  • Approximately 5,000 companies franchise. Due to the increasing awareness and popularity of the franchise concept. It is expected this number to grow to 8,000 by the year 2010   
 
 
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