International Franchise Association, IFA is one of the world’s largest membership organization for franchisors, franchisees and franchise suppliers. In this article we bring you some of the highlights from IFA’s Economic Outlook Report, which was recently published. Moreover, this report holds special significance as it points out the challenges during the peak of the pandemic period. In addition, it also lays out a promising future for the industry as a whole in its economic forecast for the next year.
- A decline in franchise employment by 11.2 per cent in 2020, losing approximately 940,000 jobs in the industry due to business closures and limited capacity
- Franchising contributed $670bn to the U.S. economy in 2020, and still represented three per cent of the national GDP
- FRANdata predicts that nearly all of the economic damage created by the COVID-19 pandemic could be eased in 2021, with significant government assistance. Namely, franchising will open more than 26,000 locations, add 800,000 new jobs, and contribute $447bn to the U.S. GDP
- Franchising’s contribution to the economy is forecast to grow by seven per cent in 2021, reaching pre-pandemic levels of economic output by the end of the year
- Fast, legislative action on COVID-19 relief could jump-start the economy
Robert Cresanti, IFA president and CEO said, “This report highlights franchising’s tremendous potential to lead our country’s economic recovery”. Further, he added, “Through quick adaptability, scalable technology, and a focus on in-demand products and services, the franchise sector has shown its resilience time and again. In conjunction with smart policies out of Washington, franchises can help Americans get back to work.”
Source: Global Franchising Magazine
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