Franchising to See Stronger Growth in 2011

In my January newsletter, I highlighted the findings of the International Franchise Association Educational Foundation's 2011 edition of the annual Franchise Business Economic Outlook, prepared by PwC. If I had to highlight the report in one sentence it would be, "Franchising is poised for stronger growth in 2011."

At a high level, there are three key metrics in the report. Looking at the projected percent change from 2010 to 2011,

• The number of Franchised Establishments will increase 2.5% (compared to 0.3% last year)
• The number of jobs in Franchised Establishments will increase 2.5% (compared to 0.6% last year)
• The Economic Output of Franchised Establishments will increase 4.7% (compared to 3.4% last year)

The report looked at the three metrics across 10 franchise business lines.  Ranked by largest expected increase in Economic Output in descending order, the top 3 lines are:

• Automotive at 7.2%
• Commercial and Residential Services at 6.9%
• Personal Services (education, health, pet care at 6.5%)

So how do you use this information as an input to finding the best franchise for you? Of course we all want to be in a business that is poised for strong growth, but if the franchise doesn't fit your unique goals and requirements, then your chances of success diminish significantly. This is where Meta-Franchise Consulting can help.  Let us help you find that intersection between great franchise opportunities and your requirements.