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Franchise Economic Growth in 2009
When we talk with business owners, they usually want to know what the annual economic outlook is. Well, even though the United States economy is reported to be "in the toilet," the franchising world is booming. Some reports indicate that the increase will be well over 100% growth. Professionals with a long line of career successes, are utilizing their savings to steer their careers. No one wants to risk being someone's employee again. Instead, many blue-collar workers and professionals alike are taking their savings plans and investing them into themselves.
Business Leader Outlook
As 2009 ended, about one quarter of franchisor's, 24.6%, reported that the economy would finish better in 2009 than in 2008. We are seeing growth in the number of units in the number of jobs being created by franchise systems.
A number of franchise units have seen the undeniable growth. Higher than 85% of all franchisor business leaders expect the number to increase in 2009. This is great news for the economy as well. As the number of franchise units are increased across country, more jobs will be created. After all, we need employees to work in the new franchises. In fact 70+ percent in employment is expected to be the final number at the end of the year. Although, there are a few industries that will see a small decrease in employment, such as retail food, products and services and the automotive industries. Some of these jobs are being reduced due to efficiency methods, not indicative of a downward market.
With more than 900,000 franchised businesses in operation across country, which are indirectly responsible for providing 21 million jobs and generating $2.3 trillion in economic output, franchises drive the economy. All in all, it looks like the franchise world is still bustling. It continues to prove itself as the best business expansion tool ever created.
(c) Shelton & Power, LLC (2010)