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Franchising Forecast Remains Optimistic

We'd like to kick off our blogging efforts for 2012 with a brief look back to 2011 and a longview gaze at the franchising forecast for 2011.

Before 2011 ended, the IFA released its findings on the franchise industry for 2011 as well as its projections for the year to come. In 2011, growth across the industry was less than had been predicted at the beginning of the year. Employment increases at franchises was 0.6% less than had been originally projected, while the number of franchises in America also fell, albeit by the relatively tiny amount of 0.6%/

As Stephen Caldeira, IFA president, told the Wall Street Journal: "We may have underestimated the potential significant downward impact."

Regardless, IFA forecasts for the coming yaer remain upbeat. IHS Global Insight was commissioned to prepare the projections for the coming year and they predicted franchising to grow by 1.9% over the course of the year. (You can read the findings here). The continued expansion of the QSR industry will play an ever more critical role in franchising if these targets are to be met.

'Modest growth' seems to be the industry catchphrase of the moment. It's certainly better than no growth at all. We'll be charting the franchise industry as it financially evolves over the year.

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