Economic Impact Of Franchise Businesses

(Saturday, May 10, 2008) - I am sharing this information to help you attain your wish and dream to own a business. The franchise format has become a significant economic vehicle that can deliver your dream to be your own boss.
As a highly respected industry organization, the International Franchise Association (IFA) recently commissioned Volume 2 of the Economic Impact of Franchise Businesses. The work was recently completed and validated by the accounting firm of Price Waterhouse Coopers. Mathew Shay, President of the IFA, did a great job of synthesizing the 600 page report. For the benefit of my readers, I will highlight some of the report's findings.

By 2005, more than 900,000 franchised establishments generated over $880 billion of direct economic output or over 4.4% of the private sector economy of the United States. If we include the additional economic activity generated by these businesses, their overall contribution to the economy was $2.3 trillion in 2005 or 11 percent of the US economy. The franchising sector expanded by over 18% from 2001 to 2005.

This information implies that franchising is a dominant economic force. If you plan to explore the dynamic world of franchise ownership, here are a few tips. First, engage a coach, consultant or mentor to help you navigate through the complexity of the task as franchises rarely make awards through the internet. Second, always begin with a clearly developed list of your goals, needs and expectations. Third, and last tip, don't be rushed or make an emotional decision. There are many options and you will be a more satisfied franchise owner if you fully understand the opportunity before signing up.

Jeff Levy, part of The Entrepreneur's Source, a national franchise consulting group, works with individuals considering franchising as a career and businesses considering franchising as a growth strategy. For more information, he can be reached at 425-746-1950, JeffLTheESource@JALevy.comThis e-mail address is being protected from spam bots, you need JavaScript enabled to view it , or www.TheESource.com/JLevy

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