The Power of Franchise Businesses

Franchise businesses encompass an enormous number of people and companies. When you’re starting to think about grabbing franchise opportunities and getting involved in this way of doing business, you need to be well informed. The International Franchise Association (IFA) has commissioned studies of franchising to help you understand what it’s all about and what franchising can do.

A study commissioned by the IFA Educational Foundation was conducted by PricewaterhouseCoopers and was published in March 2004. Its findings were astounding. Titled “The Economic Impact of Franchised Businesses in the United States,” it found that franchises provide close to 10 million jobs with a $229 billion payroll and operate 760,000 franchised business units. But the impact of this business goes much further, because franchises stimulate the rest of the economy with their mighty purchasing power and awesome output. They generate $1.53 trillion of economic output, greater than the gross domestic product of China.

The study also found that franchised businesses operate in every state and every congressional district, which can be a factor when lobbying the government regarding legislation that can affect franchising. It also found that the most jobs and greatest payrolls from franchising were in California, Texas, Florida, and Illinois. Franchising had the greatest impact on the economies of Nevada, Arizona, New Mexico, Florida, and Mississippi. Information about the industries affected by franchising was also obtained. The study stated that “business services accounted for more establishments, met a greater payroll, and generated more output than any other single line of business. Quick-service restaurants hired more people.” It also found that franchising had the most significant impact on the sectors of quick-service restaurants, lodging, retail food, and table/full service restaurants.

Filed Under Franchises Guide

Tagged With , , ,

Related Posts:

Comments

4 Responses to “The Power of Franchise Businesses”

  1. The Power Of FRANCHISE - Blog Snob on April 21st, 2008 4:43 pm

    [...] get involve in franchise opportunity, it doesn’t mean that you must start from scratch by launching a franchise unit where none [...]

  2. Making Money With Franchise - Blog Stuck On You on April 21st, 2008 4:44 pm

    [...] get involve in franchise opportunity, it doesn’t mean that you must start from scratch by launching a franchise unit where none [...]

  3. Escape From The Rat Race » Blog Archive » The Power Of FRANCHISES on April 21st, 2008 5:05 pm

    [...] you think you would make a good franchisee, the next step is finding franchisors that offer franchise businesses that match your skills and interests and fit your budget and financial needs. This requires a fair [...]

  4. The Power Of FRANCHISES | La Chapelle Agency Fancy Ass Blog on April 21st, 2008 5:06 pm

    [...] you think you would make a good franchisee, the next step is finding franchisors that offer franchise business that match your skills and interests and fit your budget and financial needs. This requires a fair [...]

Leave a Reply