The annual International Franchise Association (IFA) Convention recently concluded in Phoenix, Arizona. The city, the venue and the attendees were different than they were in years past, but the outlook for the franchising world remains the same.
It’s going to be another very good year.
In a year that’s featured pro-business reforms and a historic tax overhaul, the IFA is forecasting widespread growth in the franchise industry in their 2018 Franchise Business Outlook. Some of the key findings include:
- Franchise establishments are expected to grow an additional 1.9 percent in 2018 to 759,000.
- Franchise employment is projected to grow 3.7 percent, continuing to outpace the rest of the economy.
- The gross domestic product (GDP) of the franchise sector is forecast to exceed U.S. GDP growth and increase by 6.1 percent to $451 billion. The franchise sector will contribute approximately 3 percent of U.S. GDP in nominal dollars.
- Franchise business output is expected to increase by 6.2 percent to $757 billion.
- Franchise Personal Services experienced strong growth over the past year and is expected to rank first in growth of the number of establishments and in employment in 2018.
IFA President and CEO Robert Cresanti sounded extremely optimistic about the future of franchising in a statement from the IFA promoting the report.
“Over the last year, Congress and the Administration have set their sights on removing the barriers and brakes holding our economy back and stifling job creation,” said IFA President and CEO Robert Cresanti. “Regulations have been trimmed, taxes have been cut, and, as a result, the franchise community has continued its economic momentum. As we move into 2018, we expect lawmakers will remain steadfast in their support for a strong business environment. Franchises will thrive and continue to strengthen the American economy by providing jobs in every community, playing an important role in the lives of Americans, and supporting a variety of job-creating industries, from manufacturing to agriculture.”
Franchise growth is expected to be strongest in the Southern and Western United States, with Nevada and Utah presumed to lead the way in franchise employment and output franchise growth in 2018.
The 2018 report goes on to say that Franchise Personal Services, which experienced strong growth in 2018, is expected to rank first in growth of the number of establishments and in employment in 2018. I covered some of the reasons this sector is doing well in stories on mobile franchising and the business of beauty last year.
The report is a reaffirmation of why I’ve spent more than two decades helping thousands of people design their lifestyle and achieve their dreams through franchising. It’s a gateway to entrepreneurship with a proven model of success and a system of unmatched support allowing franchisees the thrill of owning a small business without the risk of going it alone.
If you’re ready to explore some of the opportunities franchise businesses have in store for you, give me a call.