FRANdata - Business Consulting Sector Booming, New Franchising Study Finds

The number of franchised units in the business consulting sector grew 221 percent, according to an industry study released today by FRANdata, a company that tracks and analyzes Franchising information.

The "Business Consulting Industry - Franchising Activity" study analyzed the performance of a representative 21 business consulting systems and their 871 units over a three-year period from 2002 to 2005.

"Franchising in the business consulting industry is booming," said FRANdata President Darrell Johnson. "Its growth has outpaced Franchise expansion in hundreds of other industries we track and is well above the growth of franchised units as a whole."

Business Consulting franchises offer business coaching to their clients to improve areas such as advertising, finance, general management, growth development, leadership, marketing, operations and sales.

The 17-page report was compiled from the Uniform franchise Offering Circulars (UFOC's) received and registered by state franchise examiners. The industry report takes a detailed look at the franchising terms and performance of each system, including such areas as financial performance of the franchisors based on audited financial statements, franchisor support offered to franchisees, initial fees, marketing requirements, royalty rates, territory terms and unit growth trends.

FRANdata, is an independent research company that receives no advertising or other fee arrangements that might influence its objectivity. The Arlington, Va.-based company has been supplying information and analysis for the franchising sector since 1989 and is often cited as an expert in such leading media as The New York Times, The Wall Street Journal and The Washington Post.