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Recent Franchise Industry Research Findings...

...indicate strong economic output and stable growth for all involved in the franchise industry.

If you ever needed a reason to invest in a franchise or business opportunity before, you will have plenty of reasons now to invest after the revelation of new franchise research findings conducted by PricewaterhouseCoopers on behalf of the IFA. This research reveals in a positive light, how the franchise industry is outperforming many independent industries sectors and as a result contributes enormously to job creation and to the overall US economy.

These latest findings were revealed by IFA President and CEO Matthew Shay during a press conference at the National Press Club in Washington D.C. (March 12th April 2008). The following information is some of the main of the research and what it means for you as a potential franchisee:


1. "The franchise sector expanded by more than 18% from 2001-2005, adding more than 140,000 new businesses and 1.2 million new jobs to the nation's economy."(IFA Insider Newsletter, p. 1, March 17, 2008)


  • This conveys how the franchise industry as an industry sector and indeed as an overall business system is extremely effective and is able to withstand any possible economic pressures incurred by a slow down in the economy.

    What does this signify for potential franchisees? It ensures you will be investing in a stable and recession-proof industry where you will benefit from an established and proven business model and a strong support network of successful franchisees which will make your success all the more greater.

2. "Economic output of franchises grew by more than 40% to $880 billion in 2005."(IFA Insider, p.2)

  • This fact reveals the franchise industry creates more jobs than some other independent business industries such as, the "durable goods manufacturing and financial activities sectors" and ensures the consistent success of the franchise industry as a viable and profitable economic entity to invest in...

3. "In sheer numbers, the jobs and payrolls of franchised businesses were greatest in California, Texas, Florida and Illinois in 2005. Franchising had the greatest impact on jobs and payroll in Nevada, New Mexico, Arizona, Mississippi and it accounted for the largest share of state output in Nevada, Arizona and Florida". (IFA Insider, p.2)

  • What does this signify for franchisees? A lot! Considering the fact payrolls amongst franchised businesses grew at a faster pace than any other businesses (within specific states) this has a much wider impact on local and national economic communities.

  • Franchising has the potential to consistently create new jobs and contribute enormously to the economy that far exceeds independent business sectors contribution. This is an achievement in itself. As Matthew Shay notes "franchised businesses generate a significant amount of economic activity and stimulate more economic activity in non-franchises businesses" and this has inevitably increased healthy competition which is good news for the US economy and consumers.

4. "There are more than 900,000 franchised businesses in the country operating in more than 100 lines of business, including automobile, commercial and residential services, quick service and full-service restaurants, retail food, lodging, real estate, retail products and services, business services and personal services." (IFA Insider, p.2)

  • This reveals how the franchise industry can provide interested parties the opportunity to find a franchise or business opportunity that truly matches their own individual requirements. This is what makes the franchise industry appealing to so many people and why you should consider investing in your own business. As the old adage goes- "In business for yourself, but not by yourself"!

For a full statistical report of these findings, please visit IFA's homepage, by clicking on the link here.

If you have any comments to make, please do not hesitate to contact me,

Franchise Reporter

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