The study shows that in 2012, the number of franchise establishments in the U.S. increased by 1.5 percent. The IFA predicts the number will increase by another 1.4 percent in 2013 -- from 746,828 to 757,055 (an increase of 10,227).
The number of jobs in franchises also are estimated to increase in 2013, from 8.1 million to nearly 8.3 million, a 2 percent increase.
Here's the IFA's explanation: Because unemployment and under-employment (taking lower pay and lower-level jobs) are still a reality for many Americans, some professionals look to a form of entrepreneurship with a proven track record.
We've covered a couple of local franchisees in ShopTalk:
Brian Sacco, 38, spent 15 years of his career working for major corporations, such as Family Dollar and Food Lion, before he and his wife, Sally, opened Charlotte's only ShelfGenie franchise. The business offers custom glide-out shelving for kitchens, bathrooms and pantries.
Sacco said connecting with the greater ShelfGenie community was critical while he and Sally learned the manage their schedule, finances and business structure. Learn more about the Sacco's journey here.
Martin Snell, another new franchisee to the area, opened a Hand & Stone Massage Spa, located in the Village at SouthPark, on Black Friday last year. He connected with the city's other Hand & Stone Massage Spa, located in Ballantyne, for advice, and the owners decided to split advertising costs. Read more about Snell's journey here.
Here are some other 2013 franchising projections from the IFA:
- The gross domestic product (GDP) of the franchise sector is projected to increase 4.1 percent in 2013, from $454 billion to $472 billion -- about 3.4 percent of U.S. GDP in nominal dollars.
- The output of franchise establishments (in nominal dollars) for 2013 is projected to increase 4.3 percent or $33 billion (from $769 billion to $802 billion).
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