Power of Franchisee Today over 41% of all retail businesses in the world. are franchised operations and it is anticipated to be 50% within the next decade. Power of Franchisee Approximately 950, 000 franchised locations exist, employing over 11,000,000 people. Why do people choose franchising? Because it offers proven methods of operation that permit the franchisee to capitalize on the experience and expertise of an established organization. That can ensure your peace of mind when starting and operating your own business. Various studies report that approximately 80% of all small businesses fail within five years and 47% of the businesses fail within the first year. Yet, over 90% of all franchises succeed! Based on these statistics, the U.S. Department of Commerce has concluded that franchising “vastly increases the likelihood of success on the part of the small business person – it offers both a degree of flexibility and security not possible under other marketing systems. Because franchising offers a formula for operating a proven business, it is rapidly growing. Sales through franchised outlets continue to increase.