Franchise businesses are creating thousands of jobs across the country, helping to bring down national unemployment and boosting the U.S. economy in the process.
The franchise business model has been instrumental in helping these business ventures succeed. Industry experts state that the job growth in franchising will continue to improve with the help of some new trends in the franchise model – changes that are making it easier than ever for new owners.
Positive economic effects of franchising
According to the International Franchise Association, there are nearly 800,000 franchised business establishments in the U.S. These account for almost 9 million direct jobs for U.S. workers, with millions more indirect jobs created as well. Trillions of dollars are funneled back into the nation's economy as a result of these franchises.
For the past five years, the IFA has predicted that job growth in franchise businesses would outpace the rest of the job market, estimating more than a quarter-million new jobs by the end of 2015. According to the ADP National Franchise Report, 52,500 new franchise jobs were added in October of 2015 alone, nearly a third of all new jobs for the private sector that month. This is a 4.4 percent year-over-year increase for the industry.
What is especially great about the job opportunities in the franchising industry is that there are many different levels of employment. This creates jobs for people with varying needs and experiences, making careers accessible to a wide range of eager Americans. The franchising market itself is incredibly diverse, allowing potential owners to hone in on specialty areas that interest them most.
Benefits and trends of franchise business models
Forbes reported that running a franchise is a wise choice for entrepreneurs because of factors like efficient, pre-established supply chains, low overheads costs and profitability. The owners can open more quickly and for lower costs than if they were to try to start their own businesses from scratch – there's no need to contend with a new marketing plan, operating procedures and other infrastructural steps when joining a pre-existing business as a franchise owner. These entrepreneurs start off with the benefits of the company's experience and support, which they wouldn't have when beginning on their own.
Despite the long history and success stories in the franchising business model, there are new opportunities developing all the time that improve how the industry is run. More options are available for employment, which creates a wider range of career openings.
Forbes gives the example of the sales company iSOLD It@Home as an example of a franchise that allows work-from-home options. Working remotely has been a growing trend across most job markets in the country, and franchising is also able to use modern technology to support these kinds of businesses.
Online franchising in general is becoming more popular, taking advantage of the vastly expanding popularity of the eCommerce markets that are changing the way Americans purchase goods and services. This provides a great deal of flexibility and easy access to support for eager business owners.
Equipment and franchise industry piece brought to you by Marlin Equipment Finance, a nationwide provider of commercial lending solutions for small and mid-size businesses. Marlin's equipment financing and loan products are offered directly to businesses, and through third party vendor programs, which include manufacturers, distributors, independent dealers and brokers in the security, food services, healthcare, information technology, office technology and telecommunications sectors.