| Howard Bundy
| Sep 4 | buy
Last week, FranchiseGrade.com released its "Franchise Industry Report 2014" touting a 3.8 percent growth in the number of franchise outlets in the United States between 2010 and 2014—a three year period.
That amounts to a little more than a 1.25 percent net annual growth rate—perhaps not a bad rate coming out of a major recession, but far shy of spectacular. What is somewhat hidden in the Franchise Industry Report 2014 is the enormous cost to franchisees in fueling even that modest industry growth.
The report reveals that, over the three year period, franchisees opened 135,289 outlets—but that the net growth over that same period was only 16,644—an average of just 5,548 per year. If those outlets were distributed across the 50 states, that would amount to...