Franchise Economic Growth Concerns for 2009

growthWe have received many concerns from clients regarding the financial outlook for franchises and whether the current market is supportive of franchises.  We have done the research for them and have compiled our research into this article for those franchisors that believe today’s market hinders franchise success. When we talk with business owners, they usually want to know what the annual economic outlook is for franchises. 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 we come close to the end of 2009, around one quarter of franchisors, (24.6%) report that the economy will finish better in 2009 than in 2008. We are seeing growth in the number of units and the number of jobs being created by franchise systems. Unit Grow The number of franchise units is seeing undeniable growth. Higher than 85% of all franchisor business leaders expect their numbers to increase in 2009. This is great news for the economy too. As the number of franchise units increase across the country, the more jobs will be created. After all, we need employees to work in the new franchises. In fact greater than a 70% increase in employment is expected to be the final number at the end of the year. However, 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 the 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. We would like to thank one of our attorneys, Lynne Shelton, for contributing this post to our BLOG.  We hope that you have found this information valuable, and always remember that we welcome comments and if you would like to contact our offices to discuss franchising, we can be reached in our Tampa, Florida office at 813-625-9590 or our Austin, Texas office at 512-535-0090.