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2010 Franchise Business Outlook Is Fairly Upbeat; The Franchise Industry Needs Loans!

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The International Franchise Association just released (with the help of PriceWaterhouseCoopers LLP) their study of the economic outlook for our industry in 2010.

Bottom Line;

A few $Billion in small business loans will help!

Now, what follows is a projection. No one has a crystal ball.

From franchise.org

The U.S. economy is expected to experience
slow growth in 2010 as the nation begins to recover from the recession.
The Franchise Business Economic Outlook for 2010’s macro view of the
economy anticipates nominal gross domestic product (GDP) to grow 3.8
percent, while economy wide employment is projected to increase 0.4
percent in 2010,” said Drew Lyon, principal in PwC's National Economics
& Statistics practice….


“Our forecast is for output of all franchise business sectors to expand modestly in 2010 as the recovery takes hold.”



Here are some other highlights;

  • The lending analysis report prepared for the
    IFA Educational Foundation by FRANdata and released Dec. 2 estimates
    that banks are expected to lend $6.7 billion to franchises in 2010
    versus the $10.1 billion that would meet 100 percent of demand.
    The
    shortfall can be attributed to banks’ conservative approach to a weak
    economic outlook and uncertainty in the commercial real estate market.
    At 100 percent lending, franchise business could create or maintain
    305,000 jobs and $32 billion of annual economic output in 2010.
  • Employment is forecast to decline in Lodging
    (-2.4 percent) and Commercial and Residential Services( -0.9 percent)
    and increase in the other eight sectors, with the largest percentage
    increases expected in Real Estate (1.3 percent), Quick Service
    Restaurants (0.8 percent), Retail Food (0.7 percent) and Personal
    Services (0.7 percent).

You are more than welcome to read the entire report. Here

Do you think it will be a better year for franchising?

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About The Franchise King®

My name is Joel Libava, and I'm the author of Become a Franchise Owner! In addition, I'm a franchise ownership advisor. I teach people the best way to choose, research, and buy franchises.

  • http://www.immediatecapital.com/ Andrew Paul

    We are talking about billions of dollars in international business loans here, so it’s a lot easier than done in my opinion, especially in this time of recession but that is one good suggestion though.

  • http://profile.typepad.com/franpro The Franchise King

    Andrew-Thank you for stopping by and for your comments, today. I really appreciate it.
    Dov,
    Thank you for coming by. Keep doing what you’re doing!
    The Franchise King®