The International Franchise Association just released (with the help of PriceWaterhouseCoopers LLP) their study of the economic outlook for our industry in 2010.
A few $Billion in small business loans will help!
Now, what follows is a projection. No one has a crystal ball.
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?
Important! If You've Already Found A Franchise To Buy Click Here Before You Send Your Money In & Sign Your Franchise Agreement
"I was pretty focused on a particular franchise opportunity when I reached out to Joel Libava. In the course of a 1-hour conversation, Joel was able to provide direct advice to help clarify the process for me and help guide me through the next steps in my vetting process. He even put me in contact with other professionals who were able to help educate me further in my particular industry. The time and money were well spent."
- Brian Grayson, Franchise Buyer, Cincinnati