What attributes do successful franchisors share some common? 

 

They are motivated to share their experience and know-how with their franchisees. They are committed to their franchisees' success. They provide their franchisees with the tools needed to operate their businesses to brand standards. They are focused on ensuring that each franchisee operates to system standards. 

 

Great franchisors have all made their share of mistakes, and have survived them. It is their hands-on knowledge of the business they are franchising that is of the greatest value to franchisees. Franchisees benefit from the franchisor's proven experience, which hopefully allows franchisees to avoid some of the minefields that plague many start-up businesses. Great franchisors provide initial training to new franchisees and their management, and also provide support in the training of members of the franchisee's staff. Great franchise systems provide their franchisees with a library of systems manuals, field consulting, consumer marketing and other support, and provide each franchisee with the tools needed to operate their businesses to system standards.

The International Franchise Association (IFA) released its annual Economic Outlook Report detailing the franchise industry’s projected economic forecast for 2020. The Report offers an in-depth look into franchising’s growth trend from 2016 to 2019, as well as a state outlook for all 50 states and Washington D.C. Conducted by FRANdata, the Report forecasts how the franchise industry is expected to continue riding the economic boom in 2020, despite growing uncertainty around the economy. “The franchise industry is responsible for creating tens of thousands of opportunities for small business ownership across the country and millions of jobs for Americans,” said Robert Cresanti, IFA’s President & CEO. The International Franchise Association (IFA)

“The franchise industry continues to pride itself on its positive impacts on communities across America. We are very excited to showcase these opportunities in our annual Economic Outlook Report. Locally-owned franchises are America’s hidden small businesses and this new report demonstrates their impact nationwide, and in every state,” continued Cresanti.

Some quick stats highlighted in the report:

  • Franchise industry forecasted to add 232,000 jobs in 2020, growing total employees to 8.67 million

  • The number of franchised businesses in the U.S. is forecasted to grow by 1.5% this year, to a total of 785,316 establishments

  • Overall GDP contribution by the franchise industry is forecasted to grow by 4.6%, to $494.96 billion

More quick franchise stats in general:

  • $2.3 trillion in total economic output

  • 11.4% of U.S. private sector economy

  • 1/3 of all United States retail sales

  • 15% of all private sector jobs

  • 781,991 franchised establishments

  • Estimated employment in franchised businesses of 8.8 million people

  • Economic output of $890 Billion

  • Economic output represents 3% of total US Gross Domestic Product (GDP)

  • Additionally, it has been previously estimated that franchising represents over 300 different business lines

​Franchise Your Business Today. The Stanwood Group, LLC provides franchise development services to launch and establish a franchise system as well as ongoing consultation. Please contact us for a free consultation at (610) 660-7773 and learn if franchising is an appropriate vehicle for expanding your business. For over 20 years our management has gained substantial expertise in assisting companies with strong unit economics and good concepts to use franchising as a growth vehicle for your business. We have worked with over 150 franchisors in the retail and service businesses sector, and have considerable expertise in identifying those business model structures that have potential to scale through franchising. We will help you and your attorney analyze whether franchising is the appropriate growth strategy for you and your business.

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Two Bala Plaza

Suite 300

Bala Cynwyd, PA 19004

United States of America

Corporate Headquarters + 1 (610) 660-7773

         © 2021 The Stanwood Group, LLC