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The rate of outgoing outlets to newly opened is 122 percent in the United States. In other words, there are 122 franchises that leave for every 100 newly opened franchises.
New research shows that the turnover rate for franchise outlets in the United States over the last four years from the beginning of 2010 to the end of 2013 is 122 percent, with more leaving than opening. The good news for the industry is that franchise outlets have grown at a pace just shy of one percent a year since 2010, according to disclosure filings.
Researcher FranchiseGrade.com joins firms such as FranData and WorldFranchising.com in compiling hard data from Franchise Disclosure Documents (FDD). These are the unaudited answers from franchisors on 23 issues ranging from their bankruptcy history to how much franchise outlets in... read more