Economic Impact Of Franchise Businesses

Eastside Business Journal:

I am sharing this information to help you attain your wish and dream to own a business. The franchise format has become a significant economic vehicle that can deliver your dream to be your own boss.

As a highly respected industry organization, the International Franchise Association (IFA) recently commissioned Volume 2 of the Economic Impact of Franchise Businesses. The work was recently completed and validated by the accounting firm of Price Waterhouse Coopers. Mathew Shay, President of the IFA, did a great job of synthesizing the 600 page report. For the benefit of my readers, I will highlight some of the report’s findings.

By 2005, more than 900,000 franchised establishments generated over $880 billion of direct economic output or over 4.4% of the private sector economy of the United States. If we include the additional economic activity generated by these businesses, their overall contribution to the economy was $2.3 trillion in 2005 or 11% of the US economy. The franchising sector expanded by over 18% from 2001 to 2005.

This information implies that franchising is a dominant economic force. If you plan to explore the dynamic world of franchise ownership, here are a few tips… carry on reading.