Franchising is the economy’s superstar. Growth of new franchised businesses is helping lift a still-sluggish economy, creating jobs and providing new options to corporate workers wanting a change.
FranNet, a North American network of franchise consultants who work with corporate workers seeking to change careers, has helped its clients open a record number of new franchised business in 2011.
“Big corporations often steal the headlines, but small businesses, especially franchises, are where job creation is,” says Jania Bailey, FranNet President. “Our numbers for 2011 are sharply up and we’re set to have a record year. More and more people are leaving corporate jobs and choosing to open businesses.”
This is shaping to be a turnaround year for the franchise industry. In addition:
- According to the International Franchise Association, U.S. franchising – including jobs and establishments – is expected to grow by 2.5 percent in 2011. IFA estimates 19,000 new franchised businesses will open this year.
- According to FRANdata, an independent company that collects data on the franchise industry, each new franchise opening creates an average of 10 jobs.
- FranNet’s assistance in helping owners open new franchised businesses has already created an estimated 5,000 jobs in 2011.
- Since its start 24 years ago, FranNet has placed more than 10,000 units, creating an estimated 100,000 jobs, based on FRANdata’s averages.
- Of the new franchises that FranNet helped open, one in four are family-run companies with parents starting businesses to employ adult children or provide jobs for both spouses, a trend that is increasing.
- The number of experienced workers leaving long-term corporate careers and opting for franchised business start-ups is higher this year for FranNet than in previous years.
Franchising is up because it works. “It is a proven model with the quickest path to creating a successful business and job growth,” says Matthew Heller, IFA spokesman.
Much of the growth is in lower investment franchises that provide home and business services and child education services, sectors that are doing well in the post-recession climate.
“With all the noise about job creation, people have missed the success story in the franchise industry,” Bailey says. “Our experience is showing that opening more, smaller franchises is key to getting the economy back on track and creating more jobs.”