WHAT IS THE ECONOMIC IMPORTANCE: OF FRANCHISING? j :o- Overall sales exceeds $600 billion,-per. year^ accounting for more than a third of all retail sales in the United States. WHY DOES FRANCHISING DEVELOP? . ^ The business format franchise makes economic isense as a business formation strategy when a marketable business concept is developed but the developer . doesn't .have, access jto. all of the _necessary capital-to fully develop aiprofitable. manufacturing, wholesale, and retail system.
Edelman, Mark A. Dr., "Executive Summary of the Assessment of the Iowa Franchise Investment Act, Senate File 522" (1991). Economic Staff Paper Series. 218.