Franchise Growth Outpaces Other Industries

On June 5, the International Franchise Association (IFA) released the latest information relating the franchising community to the larger economy as a whole. What they found was while the rate of growth in the industry remains mostly where it was in Q1, it is still outpacing other industries and on a creeping trajectory upward as the economy continues to get back on track. As a whole, the IFA estimates total revenue to be $803 billion, up $34 billion from 2012. Jobs are also slated to increase 2.0 percent in 2013, following a gain of 2.2 percent in 2012. [caption id="attachment_7885" align="alignleft" width="120" caption="Alisa Harrison"][/caption] Alisa Harrison, Senior Vice President, Communications & Marketing, for the International Franchise Association, said while the results weren’t quite where they were hoping to be, they are noticing younger (i.e. fresh out of college) and older (taking on a new career objective) demographic populations are carrying a good portion of the new interest in the franchising industry. “I think when you’re looking at franchising as a whole, there are 300 (or more) different business lines,” Harrison said. “There is a wide variety of people getting into franchising. Certainly with the economy and the younger generation wanting to be more entrepreneurial, we see that. Also, as people are living longer, we see the baby boomers getting into franchising as well.” Industries such as automotive, business services, commercial and residential services, lodging, personal services, quick service restaurants, real estate, retail food, retail products and services, and full service restaurants have all experienced positive growth in establishments (1.5 percent gain) and employment (2.0 percent gain) in 2013. Harrison says there is room to remain hopeful and the industry is certainly on the correct path even as franchises remain tightly linked to a fluctuating economy impacted by consumer confidence and consumption habits. The IFA will be releasing a job report in June, and 1851 will be sure to keep an eye on the findings to determine how they may impact readers’ business interests heading into Q3.