IFA Economic Outlook report forecasts signs of recovery for franchise industry — even in recession
The American franchise industry expects to add nearly 14,000 establishments and 168,000 new jobs in 2012 — the latest indication that American franchising is healthy and growing, even in a sluggish economy.
The news comes from a recent report from IHS Global Insight for the International Franchise Association that predicts growth across the franchise industry in number of establishments, employment, economic output and contributions to U.S. gross domestic product.
The 2012 Franchise Business Economic Outlook projects that the franchise industry will add nearly 14,000 establishments in 2012, an increase of 1.9 percent; and 168,000 jobs, an increase of 2.1 percent. The report also projects 5 percent growth in economic output, from $745 billion to $782 billion; and a 5 percent increase in growth of GDP originating in the franchise sector, from $439 billion to $460 billion.
So why is franchising growing when the rest of the economy remains stagnant?
A lot of it involves a change in the way professionals see their careers. Corporate jobs aren’t as secure or lucrative as they were five years ago, and plenty of corporate veterans have turned to franchising as a way to build secure futures and control their careers after losing or walking away from their corporate jobs.
“The growth figures square with what we’ve seen at FranNet in recent years: People leaving or being forced from their corporate jobs and finding new opportunities in franchising,” says Jania Bailey, the president and COO of FranNet, the international network of franchise consultants. “With each passing year, more and more professionals discover how diverse and affordable the franchising industry is.”
FranNet has grown extensively in recent years as professionals have flocked to franchising; in 2011, American entrepreneurs have opened more than 19,000 new franchise businesses, and FranNet experienced a record year, capped by its inclusion in Inc. magazine’s list of the fastest-growing U.S. companies.
“We’re seeing franchising opportunities open up that would have been unimaginable a few years ago,” Bailey says. “With the economic climate and the projected growth in the industry, there’s never been a better time to explore franchise opportunities.”
For nearly 25 years, FranNet, based in Louisville, Ky., has been one of North America’s leaders in matching franchisees with franchise companies. FranNet consultants use a specific profiling and consultative process to determine a business model unique to each client’s goals, skill sets and interests, and have matched thousands of happy entrepreneurs to rewarding small business opportunities.