Many Franchise-Seekers Already Own Businesses

By: Michael Alston for Franchise Insights

September 18, 2024 – Data from over five years of surveying aspiring franchise owners shows  that about 15-20% already own at least one business. The percentage has varied month-to-month over this time span, which includes the pandemic-affected years, but consistently represents a significant slice of aspiring candidates for franchise development. 

We don’t know exactly why these individuals are seeking franchises, but they may be pursuing a desire to upgrade or complement their existing businesses, supplement income, or find a more lucrative venture. 

What are the types of businesses that they currently own? The “word cloud” graphic above illustrates the variety from the period May through August 2024. They range from personal care (barbering,  beauty supply and designer jewelry) and fitness to business services like security, janitorial and bookkeeping, public relations and staffing. They are as disparate as cleaning services and children’s entertainment. Restaurant and bar owners are well-represented. In fact, the variety is a reflection of the breadth of the franchise industry itself.

In the same May to August 2024 survey period, 17.1% of respondents said they were current business owners. Of those, about 68% said they owned non-franchise businesses, and over 15% said they were operating “business opportunities” already.

Of the 16.9% who already own franchises, janitorial services, coveralls suppliers, children’s gymnastics facilities and salons were reported, among others. 

The “Mystery Shopping” and Startup Sentiment Index™ surveys of franchise inquirers from which we collect this data are conducted monthly on the FranchiseVentures lead generation platform. This survey data was collected May through August 2024.

Franchise Ventures is the leading franchise lead-generation platform for potential franchisees to thousands of growing franchise systems in the United States and Canada. Its franchise lead generation brands include Franchise.com, Franchise Solutions, Franchise Gator, Franchise Opportunities, Franchise For Sale, SmallBusinessStartup.com and BusinessBroker.net, and together they provide the largest aggregation of prospective franchise buyers in the U.S.

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Published on Tuesday, September 17th, 2024.