GROSSE POINTE – FranNet, an international network of franchise consultants, has helped lay the foundation for thousands of projected new businesses and jobs in 2012.
In a recent report, the International Franchise Association predicts growth across the franchise industry in number of establishments, employment, economic output and contributions to U.S. gross domestic product. The 2012 Franchise Business Economic Outlook projects that the franchise industry will add nearly 14,000 establishments in 2012, an increase of 1.9 percent; and 168,000 jobs, an increase of 2.1 percent.
“The growth figures square with what we’ve seen at FranNet in recent years: People leaving or being forced from their corporate jobs and finding new opportunities in franchising,” said owner of FranNet of Michigan Mark Cory. “With each passing year, more and more professionals discover how diverse and affordable the franchising industry is.”
FranNet has grown extensively in recent years as professionals have flocked to franchising; in 2011, American entrepreneurs have opened more than 19,000 new franchise businesses, and FranNet experienced a record year, capped off by its inclusion in Inc. magazine’s list of the fastest-growing U.S. companies.
The IFA report, released in late December, also projects 5 percent growth in economic output, from $745 billion to $782 billion; and a 5 percent increase in growth of GDP originating in the franchise sector, from $439 billion to $460 billion.
Among franchise business segments, the report projects that personal services franchises will show the most growth in output, at 6.2 percent, followed by retail products and services at 6.1 percent and real estate at 5.8 percent. IHS Global Insight, an economic analysis and forecasting firm, prepared the report for the IFA Educational Foundation.
The forecast “is good news for the franchise industry and the overall economy, given franchising supports 12 percent of the U.S. private sector workforce,” said IFA President & CEO Stephen J. Caldeira, who called for more pro-growth government policies and relaxed credit restrictions by banks to stimulate even more franchise growth.