Who Are Franchise Owners?

A snapshot of today’s franchise owners may look very different than in years past.  More chains are offering work-from-home options, lower initial investments or special offers for veterans.  Other trends show that bigger franchises and multi-unit owners are getting even bigger and buying up other brands to break into new markets or expand their existing customer base.

Here’s a closer look at today’s typical franchisee:bigstock-Franchise-opportunities-concep-40612081

  • 28.1% of franchisees are owned by women while 71.9% are owned by men.
  • The median age of a franchise owner is 45-54 years of age.  Less than 12% are 34 years or younger.
  • More than half have a Bachelor’s degree or some sort of advanced degree.  Nearly 12% of franchise owners are veterans.
  • The median pre-tax income of a franchise owner averages $50,000 – 75,000.  11% of franchise owners earn upwards of $150,000 a year.
  • California and Texas are home to the highest number of franchises with Arkansas and Vermont coming in with the least number.
  • The average ownership tenure of a franchise is typically between 1-5 years with only 20% owning a franchise for 10 or more years.
  • The most popular industry sectors for franchises are quick-service, lodging and business-related.  The least popular are video, security-related and party-related.
  • $520,000 is the average initial investment to become a franchise owner.