More professionals were purchasing a franchise in first quarter, with help from FranNet
We just got back from our franchisor meetings in San Francisco to find some welcome and very exciting news — we placed 33 percent more clients into franchise ownership in the first three months of this year than in the same period in 2011. That’s a phenomenal achievement!
It’s wonderful news for FranNet and for the franchise industry as a whole, a signal that the franchise sector is poised for a banner year. Franchising outperformed other sectors of the economy during the recession, and we’ve been making some serious outreach and education efforts in recent years. They’re starting to pay off as the economy improves.
Most of us thought we’d be in better shape this year than last. In December, the International Franchise Association’s 2012 Franchise Business Economic Outlook projected 14,000 new establishments and 168,000 new jobs for the franchise industry in 2012, coupled with 5 percent increases in economic output and GDP growth originating in the franchise sector.
The IFA recently announced that its Franchise Business Index, a leading barometer of the sector’s health, showed its sixth consecutive monthly increase and a level 1.4 percent higher than at the same time in 2011. All good news, to be sure.
But now, with our first-quarter numbers, we’re wondering if the IFA’s projections weren’t too conservative. Look, we know we have a long way to go, and banks still need to do more to extend credit to worthy entrepreneurs. But the early returns, you have to admit, are extremely encouraging.
We see the great numbers as validation of our collaborative approach. We’ve aggressively reached out to business organizations and other referral partners for good franchisee candidates, including referral-based alliances with the small business counseling nonprofit SCORE and the business networking organization BNI.
We’re continuing our educational seminars and webinars, whether they’re held at our home office in Louisville or by our more than 100 FranNet consultants throughout the United States and Canada; and pursued other worthy franchisee prospects, such as veterans of the Iraq and Afghanistan wars and former professional athletes.
Our consultants have done a great job of embracing those initiatives, so our coverage has been more thorough, and we continue to get more and more people involved. It’s like a net: The more fibers you add to it, the bigger the net becomes and the better chance we have to reach the people who need our services.
If you’re interested in starting a new career path in franchising, now’s a great time to do it; plenty of people are taking the plunge! Check us out at www.frannet.com.