1851

Despite its 160-plus year history, the franchising industry is still not widely understood. Of the many misconceptions that exist about this industry, the most common are that franchised businesses are owned by a corporation and do not have the same local feel as a mom-and-pop shop and that franchising is limited to fast food establishments. Further, most people don&rsquo;t realize just how big of an industry franchising is, and how much it contributes to the local and national economy. &nbsp;

According to Stephen Worley, Senior Director of Communications for the <a href="http://www.franchise.org/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=international-franchise-association-debunks-common-franchising-myths-2708186" target="_blank" rel="nofollow" style="text-decoration-line:none" target="_blank">International Franchise Association (IFA)</a>, &ldquo;Franchise-owned businesses are a critical component of America&rsquo;s economy, and tax relief, combined with regulatory reform, is creating economic and growth opportunities in the business community that have not existed for quite some time.&rdquo;

Worley notes that after <a href="https://www.cpajournal.com/2018/01/22/first-look-tax-cuts-jobs-act-2017/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=international-franchise-association-debunks-common-franchising-myths-2708186" target="_blank" rel="nofollow" style="text-decoration-line:none" target="_blank">Congress and the Administration passed the Tax Cuts and Jobs Act in late 2017</a>, franchise optimism skyrocketed. 

&ldquo;Franchise employment is forecast to grow 3.7 percent in 2018 after growing 3.1 percent in 2017, and franchise employment will continue to outpace economy-wide employment growth,&rdquo; said Worley. &nbsp;&ldquo;Currently there are 733,000 franchise establishments that provide 7.6 million jobs in the United States. The output of franchise businesses in nominal dollars is at $674.3 billion. The gross domestic product (GDP) of the franchise sector is currently at $404.6 billion, contributing approximately three percent of the United States GDP. Regulations have been trimmed, taxes have been cut, and, as a result, the franchise community has continued its economic momentum.&rdquo;

That momentum is fueled by franchise owners operating their locations in the local community. Worley notes that when the average individual thinks of the Sport Clips around the corner or the Dunkin Donuts they visit before work, they tend to think of those stores as a part of a huge corporate company run by a CEO far away. 

&ldquo;This is the most common misconception [about franchising] &ndash; the truth is that franchises are owned and operated by a local and independent franchisee,&rdquo; he said. &ldquo;These establishments are as local as the mom-and-pop shop down the street and are likely run by someone from the community. A franchisee is responsible for all day-to-day operations of their business, such as hiring workers and deciding wages. Your neighborhood franchise is a vital part of a community&rsquo;s economy.&rdquo;

The beauty of the franchising model is that it allows an entrepreneur to become small business owners and reduces risk with the support of a brand that is already recognized and proven to be popular. Worley adds that the ability to easily recognize a franchise store, restaurant or hotel from the outside guarantees consistency that the consumer expects, which allows for more people to start a business because there is less risk involved. 

Despite all the evidence that points to the contrary, the franchise industry still has a lot of work to do to correct long-standing misconceptions. Worley notes, &ldquo;To correct misconceptions, brands can emphasize the independence that potential franchisees will have when they open a franchise. One way is through policy, by urging their representatives in Congress to establish clear standards surrounding joint employment to protect the franchise business model.&rdquo;

International Franchise Association Debunks Common Franchising Myths

1851 Franchise

The IFA’s Senior Director of Communications Stephen Worley provides insight on the franchise industry’s impact on the local community and the economy.

international-franchise-association-debunks-common-franchising-myths

ServiceMaster Restore

ServiceMaster Restore - Disaster Response - 1851 Franchise

When Disaster Strikes, ServiceMaster Restore Moves

servicemaster-restore-disaster-response-carmen-coleman

Children's Lighthouse

How Children’s Lighthouse Stands Out Among Other Children’s Education, Childcare, and Daycare Franchises

how-childrens-lighthouse-stands-out-among-other-childrens-education-childcare-and-daycare-franchises

The Growth Coach

The Growth Coach Franchise Costs, Fees, Profit and Data for 2025

the-growth-coach-franchise-costs-fees-profit-and-data-for-2025

One Hour Heating and Air Conditioning

Why One Hour Heating & Air Conditioning Sees People as the Power Behind Franchise Growth

one-hour-heating-air-conditioning-franchise-growth

Lawn Doctor

Design with photo of John Perry and Lawn Doctor logo

How a 20-Year Industry Veteran Tripled His Sales With a Lawn Doctor Franchise

lawn-doctor-franchise-success-story-john-perry

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Design with American and Federal Reserve flags against light blue background

Federal Reserve Expected To Cut Rates by Quarter Point, a Move That Could Boost Franchise Growth

fed-rate-cut-boosts-franchise-growth

Potbelly to be Acquired by RaceTrac in $566 Million Deal 

racetrac-acquires-potbelly-in-566-million-deal

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

Caribou Coffee Names Scott Kennedy CEO, Eyes Continued Growth

caribou-coffee-names-scott-kennedy-ceo-eyes-continued-growth

McDonald’s Launches New Extra Value Meals as Consumer Demand for Value Continues to Climb

mcdonalds-launches-extra-value-meals

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

International Franchise Association Debunks Common Franchising Myths

MORE STORIES LIKE THIS