More Data Supports Positive Economic Impact Of Franchising
Two new reports highlight job growth and economic output generated by the franchise industry. The first report, "National Franchise Report: Two Year Review," was presented during a press event at the International Franchise Expo in New York last month. At the same event, officials revealed findings of the mid-year Franchise Business Economic Forecast. Both reports offer glowing analysis of the franchise business marketplace.
ADP's first National Franchise Report: Two Year Review emphasizes that the franchise industry remains strong, despite headwinds. The report analyzed two years of data about job creation and economic output generated by the franchising industry. In its analysis, ADP found that since the financial crisis of 2008, small companies such as franchisees (with 1-49 employees) increased employment at a faster rate than mid- or large-size companies. In addition, the growth in U.S. franchise employment consistently outpaced the increase in employment nationally and among other types of small businesses.
Ahu Yildirmaz, vice president and head of ADP's Research Institute, said, "Franchises have had a consistent rate of job creation over the past two years. Over the same time period, franchise market growth has outpaced total employment in the U.S."
At the same press event, IFA Educational Foundation President John Reynolds gave highlights of the mid-year Franchise Business Economic Forecast, prepared by IHS Economics for the IFA Educational Foundation. Reynolds stated that franchise businesses are a major driver in the U.S. economic recovery, with above par contributions to GDP and job creation compared to other businesses. He added that there are hundreds of new brands that have started franchising in recent years that are creating opportunities for business ownership and jobs for many Americans. "Many people who begin their first job at a franchise business go on to work in management or owning their own franchises," he said.
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