If you are considering investing in a franchise business here are some facts and figures to consider. Whether buying an exisitn franchise or a brand new one, here are some things you need to know.

2. The Small Business
Administration reports that
there are more
than
franchisors in the US
3500
3500

24. If $263,000 is a little too much for you. franchisedirectr.com lists
franchises that require less than
in startup cash
http://www.franchisedirect.com/investment3/
Or go to Entrepreneur Magazine for their list of
franchises that you can start for
less than
http://www.entrepreneur.com/article/246415
209 $75,000
200
$100,000

25. 0.68%
The default rate on SBA loans to
Holiday Inn Express franchisees
for the decade ending in 2011
was just
Specifically: only out of
SBA loans disbursed to
their franchisees went into
default in that decade
0.68%
2
295

26. 0.68%
Of the thousands of franchise
brands whose franchisees
received SBA loans, only
had zero defaults during that
decade.
Although none had as many loan
disbursements as Holliday Inn
Express
52
http://www.bluemaumau.org/sba_franchisee_failure_rates_brand_2012
52

27. http://www.bluemaumau.org/sba_franchisee_failure_rates_brand_2012
Of the brands that had perfect
repayment records
were from the lodging industry
12
52

28. http://www.bluemaumau.org/sba_franchisee_failure_rates_brand_2012
One great advantage hotle/motel franchisees have is that they
usually own the real estate the business sits on. As long as the
property appreciates in value the franchisee can sell the land to
pay off loans ..... even if the business struggles.
In most other industries the franchisee leases the property. Often
from the franchisor.

29. TheBizSeller.com - For-Sale-By-Owner Specialists Serving Owner-Operatored Businesses
Find Existing Franchises For Sale, As Well As
Non-Franchised Businesses,
@ TheBizSeller.com
All Listings Are For-Sale-By-Owner