Franchise Grade® Report Reveals Stark Differences Between The Large Franchise Systems And The Emerging Systems
A new Facts & Figures Report entitled Kings and Paupers: The Long Tail of Franchising shows that 28.4% of franchise systems account for 86.5% of all new franchise investments.
April 20, 2017 // Franchising.com // New York, NY - Franchise Grade®, the leading franchise market research firm in the franchise industry, has released its most recent Facts and Figures report. This report reveals the dominance and advantage that franchise systems with 101 locations or more enjoy over those systems with less than 100 locations. The report is based on an analysis of 2,154 franchise system Franchise Disclosure Documents, using Table 3 data from Item 20 and Estimated Initial Investment data from Item 7.
When it comes to attracting franchise investments: At the beginning of 2016, the 611 large franchise systems, those with more than 100 outlets, had $175.2 billion invested between 2010 and 2015. Conversely, 1,543 franchise systems with less than 100 outlets had only $37.6 billion invested during the same time.
Commenting on the results of the report, Jeff Lefler, CEO and Founder of Franchise Grade stated: “Although franchise systems with less than 100 locations account for 71.6% of the franchise systems they receive only 13.5% of the franchise investments. Franchise systems with less than 100 franchise locations, that fail to grow, will face significant obstacles in attracting franchise investment capital. Smaller franchise systems need to diagnose the reasons why their system isn’t growing.”
This report indicates the importance of smaller franchise systems having steady and sustainable growth. This requires a franchisor to have a sound franchise program, adequate working capital and strong leadership.
To Download a Copy of the Facts & Figures Report:
About Franchise Grade®
Franchise Grade is the Authority on Franchising. Using their proprietary Franchise Performance Index, they grade over 2,500 franchise systems for investment quality and identify healthy franchises. Every franchise system’s data is published on their website and prospective franchisees use their services to help them find the best investment opportunities. Only the top franchise systems can receive their Made the Grade (MTG)™ designation. Franchise systems using the MTG™ designation attract better candidates and sell more franchises.
Franchise Grade is the only source of comprehensive information about franchising and here’s why:
- It is totally fact based
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- It is the largest database in franchising
Franchise Grade is the source of franchise industry data for major media publications such as Bloomberg, Forbes, Inc. Magazine, Newsday, Time, Black Enterprise and The Wall Street Journal.
SOURCE Franchise Grade