majority of systems are early in their development. Just over 50% of systems have been franchising for 7 years or less when they first apply for the Registry. (see chart 1) The number of young franchises that apply is trending upwards.<br><br> In the past 5 years, that group has shown the most growth. The proportion of young franchises that use SBA financing is growing. Other age groups have remained steady.<br><br> (see chart 2) The majority (59%) of systems that use SBA financing are small, with less than 100 franchised units at the time they first were listed on the Registry. (see chart 3) It is worth noting, however, that large franchises such as Subway, Dairy Queen, Burger King, and Dunkin' Brands are in the 40% of systems that use SBA financing. SBA financing is is used by most industries.<br><br> While the fast food industry is number one, this primarily reflects the greater number of food brands over franchising as a whole, rather than a financing preference. (see chart 4) © FRANdata | 800.485.9570 | www.frandata.com | www.franchiseregistry.com Age The distribution of the Years Franchising When 1 st Approved on the Registry is shown in chart 1. Note: 51% of franchises on the Registry have been franchising for seven (7) years or less when they first were listed.<br><br> Age (Yrs Franchising) When 1st Approved on the Franchise Registry 0-3 Years 35% 4-7 Years 16% 8-15 Years 22% 16+ Years 27% Chart 1 The approval trend shown in chart 2 indicates that more younger systems are being approved in recent years. This chart also implies a increase overall in systems that use SBA financing. Age Distribution of Approvals by Year 0 10 20 30 40 50 60 70 80 90 100 1998 1999 2000 2001 2002 2003 2004 2005 2006 Number of Approvals 16+ Years 8-15 Years 4-7 Years 0-3 Years Chart 2 Number of Units Most franchise systems become listed on the Franchise Registry when they are comparatively small.<br><br> 59% had 100 or fewer franchised units when they were first listed. Note that the proportion of franchise systems overall that have greater than 500 units is not high. Distribution of Programs on Registry by Number of Units at 1st Approval 0 units 9% 1-25 units 24% 26-100 units 26% 01-500 units 30% > 500 units 11% Chart 3 Industry The top 10 industries with franchise brands on the Registry are shown in chart 4.<br><br> 60% of the programs on the Registry are from the top 10 industries. These franchises are in very many specialized sectors. Top 10 Industries Using the SBA Franchise Registry 1 Fast Food Restaurants 2 Automotive 3 Services-General 4 Lodging 5 Restaurants (Sit-Down) 6 Retail Stores 7 Maintenance Services 8 Retail Food 9 Beauty-Related 10 Health & Fitness<br><br>

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