We reviewed current economic reports and recent business-friendly actions by the Federal Government to evaluate the climate for the franchise industry in 2018. Our research indicated that the highest small business optimism index in years is a precursor of positive franchise industry growth.
The results reveal that climate for new franchise concepts and franchise industry growth is very positive.
The U.S Chamber of Commerce highlights that nearly half of the small business owners (48%) report feeling “good” about the health of their local economy, up six percentage points from Q2 as cash flow remains strong. The franchise industry is expected to grow in 2018, with employment projected to climb 3.7% and business output rising 6.2%, according to the 2018 Franchise Business Outlook.
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Our research reveals that after attrition, 20% of franchises that started 6 to 10 years ago and continued franchising had 100 locations or more.
Using Franchise Grade data we tracked the growth of new franchises over a ten-year period and the challenges and opportunities many franchise brands face.
When it comes to growing new franchise locations, the franchisors goal is to add as many new franchisees as their system and market can sustain.