Tuesday, January 18, 2011

Female Franchise Owners Most Affected by Weak Economy

In an economy showing few signs of growth, 87% of female owned franchised businesses report they are not profitable. This compares with only 23% of male owned franchised businesses. 9% of female respondents report that their business became profitable within three years, as compared to 50% of male respondents. Other findings from the National Franchisee Survey suggest that women have more recently embraced franchised business ownership than their male counterparts. This suggests that the poor results for female business owners may be related to the currently weak economy. Opening a business much later in the business cycle, women owned businesses were less likely to have been profitable when the economy worsened.

These and other insights about franchisee owned businesses are provided in a new report by FranchiseFacts. The report, titled Franchisee Satisfaction Survey Annual Report 2010, is now available.

The findings come from FranchiseFacts’ 2010 National Franchisee Survey, a survey of franchise owners throughout the United States and Canada. The report explores all aspects of their business including franchisee satisfaction (relations with their franchisor), to current profitability, business development initiatives, business trends and future plans.

At over $600 B in annual revenues, the franchising industry is larger than the combined automobile, computer, truck and airplane industries. And it employs at least as many people. A better understanding of this industry is important to understanding the direction of our economy in terms of small business growth and new jobs.

This report provides numerous insights worthy of further research. For example, 66% of respondents report a decline in business over the past year while 45% anticipate a decline in the coming year. Also, 50% of respondents anticipate closing existing locations in the future.

This report is available, free of charge, at www.FranchiseFactsUSA.com.

FranchiseFacts – Capturing the franchise experience

Perry Shoom, FranchiseFacts
Capturing the franchise experience!

Franchisee Survey in progress at www.FranchiseFactsUSA.com
If you are a franchise owner or store manager, please participate!

Understanding the Franchise Experience blog can be found at franchisefactsusa.blogspot.com

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