Franchising: The Economic Impact
New Day Consulting Systems, LLC helps you own a single unit, multi-unit or master franchise or develop your present business into a national franchise. According to a recent study on franchise growth, the franchise sector is expected to outpace the growth of the rest of the sectors in the U.S. economy in 2015. And that growth is expected to continue in the years ahead. To learn more about the economic impact of the franchise industry, please read the statistics and the report below:
- Franchise businesses will add 247,000 new direct jobs in 2015, a 2.9 percent increase to 8.8 million direct jobs over 2014.
- The number of franchise establishments will grow by 12,111, or 1.6 percent, to 781,794.
- Economic output from franchise businesses is estimated to increase by 5.4 percent over 2014 to $889 billion.
- The gross domestic product of the franchise sector is projected to rise by 5.1 percent this year, which is faster than the 4.9 percent GDP increase forecasted for the economy as a whole.
- The franchise sector will contribute about 3 percent of the U.S. GDP in 2015.
The IFA Franchise Business Index – which is a mixture of employment, sales and credit conditions – also rose, especially at the end of 2014. In November, the index was up 3.1 percent compared to November 2013, the biggest year-over-year gain since the start of the Great Recession in 2008. “With continued job gains, consumer spending will accelerate creating the conditions for another strong year of growth for franchise businesses,” said IHS Economics Senior Economist Jim Gillula.
For more detailed information about franchise unit ownership and franchise development for your business, please visit these pages listed below: