Linking Franchise Success with Economic Growth and Net Job ...
Linking Franchise Success with Economic Growth and Net Job ...
Linking Franchise Success with Economic Growth and Net Job ...
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White Paper Presentation:<br />
<strong>Linking</strong> <strong>Franchise</strong> <strong>Success</strong><br />
<strong>with</strong> <strong>Economic</strong> <strong>Growth</strong> <strong>and</strong><br />
<strong>Net</strong> <strong>Job</strong> Creation<br />
Introduced by: Bill Hall<br />
Panelists: Chad Moutray, Philip Zeidman, Joyce Mazero, <strong>and</strong> Jeff Rosensweig
Current Environment for <strong>Franchise</strong>d Small Businesses<br />
<strong>Franchise</strong>d businesses are an essential segment of the larger small<br />
business population.<br />
• Over 9 million jobs in business format <strong>and</strong> product distribution<br />
franchises. Nearly 18 million jobs including indirect.<br />
Franchising sector growth in output <strong>and</strong> jobs has outpaced other<br />
businesses in periods of expansion <strong>and</strong> during economic downturns.<br />
The #1 issue for franchised small businesses is credit access.<br />
• 39% of franchisors report that more than half of their existing or<br />
prospective franchisees were unable to get necessary financing.
<strong>Growth</strong> in Employment for <strong>Franchise</strong> Establishments<br />
& All Business Establishments, 2001-2011<br />
5.0%<br />
4.0%<br />
3.0%<br />
2.0%<br />
1.0%<br />
0.0%<br />
-1.0%<br />
-2.0%<br />
-3.0%<br />
-4.0%<br />
-5.0%<br />
-6.0%<br />
3.6%<br />
0.3%<br />
0.0%<br />
1.4%<br />
0.4%<br />
-0.8%<br />
2001-2005 2005-2007 2007-2008 2008-2009 2009-2010 2010-2011<br />
-2.8%<br />
-5.0%<br />
<strong>Franchise</strong>d Businesses All Businesses<br />
0.6%<br />
-0.6%<br />
2.5%<br />
1.7%
<strong>Growth</strong> in Output from <strong>Franchise</strong> Establishments <strong>and</strong><br />
All Business Establishments, 2001-2011<br />
9.0%<br />
8.0%<br />
7.0%<br />
6.0%<br />
5.0%<br />
4.0%<br />
3.0%<br />
2.0%<br />
1.0%<br />
0.0%<br />
-1.0%<br />
8.5%<br />
5.9% 5.7%<br />
4.8%<br />
4.1%<br />
3.2%<br />
2001-2005 2005-2007 2007-2008 2008-2009 2009-2010 2010-2011<br />
0.4%<br />
-0.5%<br />
<strong>Franchise</strong>d Businesses All Businesses<br />
3.4%<br />
4.3%<br />
4.7%<br />
4.0%
Summary – Key Points<br />
Under the right circumstances, franchised small businesses will provide<br />
the economic growth <strong>and</strong> job creation to close our “job gap.”<br />
• The franchise business model provides scalability advantages which can<br />
allow entrepreneurs to become high-impact firms.<br />
• <strong>Franchise</strong>es <strong>and</strong> franchisors need to have sufficient lending capacity to be<br />
able to grow <strong>and</strong> hire.<br />
• The overall tax <strong>and</strong> regulatory environment must be conducive for growth.<br />
• Global markets represent a tremendous opportunity for growth.
White Paper Presentation:<br />
<strong>Linking</strong> <strong>Franchise</strong> <strong>Success</strong><br />
<strong>with</strong> <strong>Economic</strong> <strong>Growth</strong> <strong>and</strong><br />
<strong>Net</strong> <strong>Job</strong> Creation<br />
Introduced by: Bill Hall<br />
Panelists: Chad Moutray, Philip Zeidman, Joyce Mazero, <strong>and</strong> Jeff Rosensweig
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