Explore these franchise industry facts to learn more about your business opportunities. Find out from Creative Colors International (CCI) why it's a great time to invest in a franchise.
Small businesses are the heartbeat of the American economy and the building blocks of local communities. There are 33.2 million small businesses in the United States. Small-business owners can be integral contributors to the local economy by providing a product or service and employment for fellow community members. Small businesses account for 44% of U.S. economic activity and employ 61.7 million people, according to the U.S. Small Business Administration.
Business ownership offers flexibility and the skills to make decisions quickly without needing approval from management, and it provides a rewarding way for people to tap into their creativity and pursue their passions.
Launching a small business can be a risky endeavor. If you want to chart a new course, franchising may be a better choice. Franchising enables entrepreneurs to build a future on Main Street as part of the small business community with a proven brand. Franchise owners can take control of their financial future with the tools they need to succeed, such as training and ongoing support. Franchise success stories can be found in nearly every industry, including food and beverage, home services, personal services, and auto repair.
Franchising by the Numbers
CCI put together some franchise industry facts to provide insight into the booming franchise industry.
- The first example of modern-day franchising in the U.S. goes to Martha Matilda Harper, founder of Harper Method Shops. During its heyday, the chain franchised 500 hair salons and training schools.
- The outlook for franchising is bright. The number of franchises in the U.S. is forecast to rise 9% to 805,000 units this year, and the total economic output of franchises is expected to reach $860.1 billion in 2023, according to the International Franchise Association.
- The largest franchise in the world is McDonald’s. The fast-food behemoth serves up burgers and fries at more than 40,000 locations across the globe and generated $5.9 billion in revenue during the first quarter.
- Despite the plethora of fast-food establishments in the franchise community, only 25% of all franchises are quick-service restaurants.
- Franchises pay up to 4% higher wages than similar independent operations.
- The initial investment for a franchise covers a broad array of figures. Franchises can start under $10,000 for a home-based business and hit the million-dollar mark for establishments with large footprints, such as fast-food restaurants, gyms, and hotels.
Types of Franchises
Now that you’ve taken a look at the numbers, it’s important to be familiar with the three main franchise business models.
- Business format franchises: These are the most common type of franchise, in which the franchisor provides a complete business model to the franchisee, including training, support, and ongoing assistance.
- Product distribution franchises: Product franchisees sell the franchisor's products but do not operate under the franchisor's name or business model.
- Management franchises: In this model, the franchisor provides the franchisee with a complete business model, but the franchisee is responsible for hiring and managing employees.
CCI: Low Investment, High Reward
Original Founders: JoAnn & Jim Foster
CCI is the leader in leather and vinyl restoration. JoAnn and Jim Foster opened the first CCI location in 1980 and started franchising the concept in 1991. Today our locally owned and operated mobile vans serve communities across the U.S.
CCI’s service technicians can fix rips, tears, scuffs, burns, scratches, and fading in leather and vinyl to save up to 90% of replacement costs. Our business format franchisees take advantage of multiple revenue streams by partnering with businesses in their community, such as auto dealerships, marinas, and medical facilities, to provide B2B services. We also travel to residential customers to return their leather furniture to like-new condition.
The initial investment for a CCI franchise ranges from $86,980 to $102,100, including a $49,500 franchise fee. We provide our small-business owners with the tools, training, and technology they need to get the job done right the first time.
Request Franchise Info
To learn more about the benefits of a mobile business in the leather restoration industry, request franchise info to connect with someone from our team.
