The 2013 Economic Outlook on Franchise Business
The franchising model has been used effectively by many organisations to encourage business owners and for job creation. After the global recession of 2008, franchises have steadily recovered and helped stimulate economic growth. But what does 2013 and the future hold for this sector?
Franchise Businesses Create Jobs Much Faster than Other Businesses
According to HIS Global Insight has shown from 2007 until 2013, the franchising business model has consistently employed more people than all other traditional businesses types combined.
Franchise Economic Outlook
Further research from HIS Global Insight has come to some conclusions, regarding the future forecast of the franchising sector.
It is expected that the output of franchise businesses in 2013 will increase by 4.3 % (following the 4.9 % increase of 2012) from 769 billion dollars to 802 billion dollars. That is an increase of 33 billion in nominal dollars.
The amount of franchise establishments in the U.S. is predicted to increase by 1.4 % in 2013 (this is slightly short of the 1.5 % growth seen in 2012) from 746,828 up to 757,055. That would be a total increase of 10,227 in the number of establishments.
The number of workers in franchise establishments is expected to rise by 2.0 % in 2013 (following an increase of 2.1 % in 2012) from 8.1 million up to 8.262 million. This would mean an additional 162,000 jobs created.
Franchise Employment Distribution
There are many market sectors which make use of the franchising model. Here is a quick outline of the distribution of workers among various sectors in 2013.
• Quick Service Restaurants (37 %)
• Table or Full Service Restaurants (13 %)
• Business Services (11 %)
• Lodging (9 %)
• Personal Services (8 %)
• Retail Food (6 %)
• Retail Product and Services (6 %)
• Real Estate (4 %)
• Commercial and Residential Services (4 %)
• Automotive (2 %)