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Franchise Index Shows Exciting Growth

Projections for the franchise industry called for modest growth over the year and according to metrics provided by the IFA, it seems that franchising is on track for solid improvement over this year.

The IFA launched a very informative index - the Franchise Business Index - late last week that will provide those who follow the industry with a level of insight that is essentially unprecedented. According to the first posting of the index, franchising experienced a 0.3% increase in the last month and most excitingly, is at its highest point since mid-2008.

The index, according to the Washington Times, is devised from "employment figures from the U.S. Bureau of Labor Statistics, personal consumption expenditures from the Bureau of Economic Analysis, and small-businesses optimism and credit conditions from the National Federation of Independent Business."

Not surprisingly, the IFA was very welcoming of the findings.

"For the first time, the franchising sector had economic information based on solid government data," said Steven Caldeira.

Perhaps the most beneficial aspect of this index is the way it will allow franchisors to track overall industry progress at a month-in, month-out basis. If this metric is anything to go by, though, franchising is meeting, if not exceeding, its targets for 2012. We expect we'll be hearing more exciting things about the growth of franchising via this index in the coming months.

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