Highlights of the Economic Census report “Franchise Statistics: 2007” Thomas L. Mesenbourg, Jr. Deputy Director and Chief Operating Officer U.S. Census.

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Presentation transcript:

Highlights of the Economic Census report “Franchise Statistics: 2007” Thomas L. Mesenbourg, Jr. Deputy Director and Chief Operating Officer U.S. Census Bureau Released September 14, 2010 International Franchise Association Annual Public Affairs Conference

2 September 14, 2010 Part of the Economic Census required by law to be taken every 5 years for years ending in “2” and “7” The first comprehensive report from the Census Bureau for businesses engaged in franchising in the United States About the Report

3 September 14, 2010 Which Businesses Are Included Includes: All employer businesses operating during the Economic Census year In 295 selected industries, spanning 15 of the 18 economic census sectors Operating under a trademark authorized by a franchisor during the year Excludes: Nonemployer businesses (a.k.a “independent contractors”) – not in the scope of the economic census

4 September 14, 2010 A Look at the 2007 Franchise Statistics Estimates

5 September 14, 2010 Publishes data for 1,068 individual industries at the national, state, and local area levels Data reflects over 7.3 Million employer businesses in the US. These businesses reported: $29.3 Trillion in total sales, receipts, or revenue $4.8 Trillion in annual payroll Million employees The 2007 Economic Census at a Glance

6 September 14, 2010 Franchise Overview Establish- ments (number) Sales, shipments, receipts, revenue ($ billion ) Annual payroll ($ billion) Employ ment (1,000) All establishments in covered industries 4,336,0467,6581,58758,439 Total Franchises453,3261, ,882 Franchisee- Owned 350,9471, ,261 Franchisor- Owned 102, ,621 Note: Detail may not add to total because of rounding.

7 September 14, 2010 Distribution of Franchise Businesses by Sector

8 September 14, 2010 Top Industries: Number of and Employment in Franchise Businesses Establish- ments (number) Sales, shipments, receipts, revenue ($ million) Annual payroll ($ million) Employ- ment (1,000) Limited-Service Restaurants 124,898112,55728,2382,605 Gas Stations w/ Convenience Stores 33,991131,1324, Full-Service Restaurants 30,13036,08811, New Car Dealers24,888687,70750,1481,138 Hotels (except Casino Hotels) 22,58551,27412,209659

9 September 14, 2010 Top Industries: Sales of Franchise Businesses Establish- ments (number) Sales, shipments, receipts, revenue ($ million ) Annual payroll ($ million) Employ- ment (1,000) New Car Dealers24,888687,70750,1481,138 Gas Stations w/ Convenience Stores 33,991131,1324, Limited-Service Restaurants 124,898112,55728,2382,605 Hotels (except Casino Hotels) 22,58551,27412, Other Gas Stations 7,25743,6361,36972

10 September 14, 2010 Top Industries: Franchise-Dominated (Establishments) All establishments (number) Franchise establishments (number) Percent New Car Dealers24, % Private Mail Centers5,2203, % Limited-Service Restaurants211,313124, % Diet & Weight Reduction Centers 3,2171, % Other Business Service Centers (including Copy Shops) 6,4523, %

11 September 14, 2010 Top Industries: Franchise-Dominated (Sales) All Sales, shipments, receipts, revenue ($ million) Franchise Sales, shipments, receipts, revenue ($ million) Percent New Car Dealers687, % Limited-Service Restaurants151,352112, % Diet & Weight Reduction Centers 1,8381, % Private Mail Centers2,1491, % Motorcycle Dealers23,21514, %

12 September 14, 2010 Sales per Business for Top Franchise Industries

13 September 14, 2010 Sales per Employee for Top Franchise Industries

14 September 14, 2010 Distribution of Franchise Businesses by Sector

15 September 14, 2010 Top Franchise Industries in Other Sectors Establish- ments (number) Sales, shipments, receipts, revenue ($ million) Annual payroll ($ million) Employ- ment (1,000) Offices of Real Estate Agents & Brokers 22,00924,4202,66178 Tax Preparation Services 5,4161, Janitorial Services 6,5694,3451,54499 Auto Oil Change & Lube 3,7882, Beauty Salons6,5021,

16 September 14, 2010 Accessing These Results  Visit American FactFinder (AFF), the Census Bureau’s online, data access tool at factfinder.census.gov  For more information about the 2007 Economic Census, see the Economic Census Web site:

17 September 14, 2010 Currently developing the content for the 2012 Economic Census Issues for Franchise inquiry on 2012 forms Define collected industries Identify geographic level(s) to be published Clarify definition of “franchising” to improve data quality and response Improve reporting of these and other Economic Census data to improve their timeliness and accuracy What’s in Store for the Future

18 September 14, 2010 Contact Information For media inquiries: U.S. Census Bureau Public Information Office Phone: For franchise data-specific inquiries: Andrew W. Hait U.S. Census Bureau Economic Planning & Coordination Division Phone: