HIRE YOURSELF Blog

It’s a Franchise Economy

Posted by Nat Truitt on Feb 10, 2019 5:20:08 PM
Nat Truitt

You hear about franchising every day. Chances are, you spend money in franchised businesses every day as well. Just how big is the franchising way of doing business in 2016 America? In terms of sheer numbers—jobs, revenues, dollars in the economy, people employed—it’s massive.

Podcast Episode: Types of Franchises

Why? Because it works. Let’s take a look at the facts:

Employee volume

According to the most recent U.S. Census numbers, franchises make up more than 10 percent of employer businesses in the U.S., employing over 8 million workers.

Total Sales Nation-wide

Also according to the Census, franchise businesses accounted for nearly $1.3 trillion of the $7.7 trillion in total sales for 295 industries surveyed. That trillion with a “T”—that’s a lot of money changing hands through franchising.

Job creation

Since 2012, franchise job creation has outpaced the total private sector rate year after year, lifting the total percentage of new jobs that are in franchised businesses from 6.8% to a whopping 10.8%.

many opportunities

Franchising was once considered synonymous with the food-service industry, but today’s franchise opportunities have a vast reach into dozens of business sectors. According to a recent report from Entrepreneur, some of the largest of these sectors are maintenance services (12.6%), personal care (also 12.6%), businesses serving children (8.2%), and retail businesses (6.4%).

That’s just a small representation of the wide range industries utilizing the franchise model—and conclusive proof that franchising outgrew the confines of the fast food sector long ago.

business model

While franchising continues to prove to be an effective business model year over year in the U.S., overseas markets are sitting up and taking notice. A December, 2015 feature article in the United Kingdom’s Daily Telegraph boldly proclaimed, “Brits Embrace the All-American Franchising Business Model.” Franchised employment is up 70% in the U.K. over the last decade, and the number of franchises has surged 14% in the past 2 years alone.

access to funding

Franchise funding is popular with banks. The SBA has many franchise business loans  for franchisees to consider to start their unit. Franchisees also have the options of using home equity and brokerage lines to get enough funding together to start on their path to freedom.

tons of help

As a franchise consultant, I help hundreds of prospective business owners each year consider the viability of franchising for them. If you’d like to know more about franchising’s steady growth and many opportunities, I can help you investigate your options at no cost to you. For more information, feel free to contact me directly at ntruitt@hireyourself.com.

Dave's Off-Ramp: An Corporate Exit Case StudyNat Truitt is a passionate franchise consultant who strives to enable others to embrace the American dream of owning their own business. After spending more than 10 years building up four businesses, his personal experience as an entrepreneur and franchisee has validated what he now teaches others – that the fastest path to success for many is through franchise ownership. Nat’s desire to put others on the fast track – by matching their business goals and skills with successful franchises – combined with his knowledge and experience in the franchise industry makes him a valuable asset for anyone who is looking for a franchise business.

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Topics: Mindset, Franchise