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Franchise Industry Outlook Update 2012

According to the recent franchise industry update report provided by the International Franchise Association (IFA) that was prepared by IHS Global Insight, mid-year economic growth has weakened, mostly due to ripples caused by an overly mild winter. Overall, forecasts for real GDP is showing growth just above 2%.

The report also states that while the economic recovery continues at a slow pace, small-business growth is hampered by the low availability of credit.

Expectations of new franchise establishments have been adjusted from a pre-year forecast of 1.6% to a revised 1.7%. Employment figures in franchise establishment are expected to increase 2.2% over the 1.9% gain in 2011. And overall output of franchise establishments are slightly improved to 5.3% in 2012, up from original forecast of 5.0%.

The report studies 10 franchise segments (business lines) and they are:

1. Automotive
2. Business Services
3. Commercial and Residential Services
4. Lodging
5. Personal Services
6. Quick Service Restaurants
7. Table/Full Service Restaurants
8. Real Estate
9. Retail Food
10. Retail Products and Services

Highlighting Business Services, this segment is showing the highest growth of employment at 3.7% and the second highest for number of establishments, 2.4%. This would indicate there is potential in this segment. Business Services segment consist of printing, business transportation, warehousing and storage, data-processing services, insurance agencies and brokerages, office administrative services, employment services, investigation and security services, tax-preparation and payroll services, and heavy equipment leasing.

For the full report, visit .

About the author

Rob Bennett

Rob had served in the corporate-world for 18 years filling various technical capacities, from structural design to project engineer. His experience lends to FranFinders strategic planning, systems design and optimization.

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