In The News

Franchising: A Job-Creation Machine

Dec 21, 2011

FranNet, IFA support pro-growth policies to boost small business, nation’s economy

Did you know that franchise businesses provide the nation’s workforce with nearly 10 million jobs?

Did you know that they produce goods and services worth an estimated $802 billion?

Did you know there are nearly a million franchise businesses in the United States?

It’s all true, and those facts reflect what smart entrepreneurs have known for years: Franchising is an engine for economic growth.

Even in the lingering recession, with virtually no growth in any sector of the economy, the franchising industry projects growth this year and considerable expansion in years to come.

Sound statistics underlie our optimism. Recently, the International Franchise Association released an extensive Economic Impact Report that,  using 2007 U.S. Census data on franchise businesses, carefully measures franchising’s economic impact in the United States.

The report found that 828,138 U.S. franchise businesses provide 9,125,700 direct jobs — 6.2 percent of the nation’s private, non-farm workforce.  Even more impressive, adding spinoff jobs from the products and services franchisees and franchisors buy, the industry is responsible for 17.4 million jobs. That’s 11.8 percent of private, non-farm jobs — nearly one job in every eight.

In mid-September, FranNet representatives joined nearly 500 franchise small business owners in Washington, D.C., for IFA’s 12th Annual Public Affairs Conference, in which the owners could spread the word about franchising during face-to-face meetings with members of Congress.

IFA, and FranNet, believe lawmakers can take some basic steps to help our industry and get the nation’s economy moving again:

• Increase small business access to credit. We support increases to maximum guarantees in the Small Business Administration loan program, extensions of the 90 percent loan guarantee rate and reductions to borrowers’ fees. Entrepreneurs’ inability to borrow money is a major roadblock for small business growth.
• Stabilize income tax rates. We support permanent extension of current income tax rates.
• Reduce health insurance costs. We support legislation to allow small businesses to pool insurance policies and costs across state lines. We also back repeal of the so-called “individual mandate” in the health care law that requires employers and individuals to buy health insurance or pay a tax penalty.

FranNet,  based in Louisville, Ky., is a privately-held franchised business consulting firm founded in 1987. FranNet consultants work individually with clients interested in purchasing a franchise and use a specific profiling and consultative process to determine a business model unique to each person.

Visit us at www.frannet.com to see how franchising can help transform your career — and help the nation’s economy as well.

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