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.
- 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.