The Effects of the 2016 Election on the Franchise Industry
Despite political beliefs, most everyone can agree that the U.S. presidential election of 2016 has had a profound impact on our society and the ways in which we live and work. Though every presidential election comes fraught with its own uncertainties, the unusually combative nature of last year’s contest signaled that our nation was gearing up for major change on nearly every level of our society, both personal and professional.
The timing of last year’s election seemed as though it may have come at an unfortunate time for the franchise industry, which had been experiencing a period of consistent growth, outpacing overall U.S. economic growth for six consecutive years. If the election were to have an adverse effect on the economy it could derail this pattern, costing jobs and putting the entrepreneurial dreams of many potential franchisees, across various industries, on hold.
One year later, what has the impact been? Has the election had a detrimental effect on franchising in the U.S.?
It doesn’t appear so.
Before the election, the franchise sector was growing faster than the overall GDP, according to the International Franchise Association. By their estimates, franchise employment in 2016 was up 3.5% as the number of franchise establishments grew by 1.7%. Franchise output also grew by 5.8%. This of course is across all business segments, though business services franchises—such as AtWork—experienced strong growth in line with industry averages.
In January 2017 IFA released its Franchise Business Economic Outlook for 2017 and the news seemed good for the industry. IFA projected that the number of franchises, their employment, and their output would all grow by similar percentages as they did in 2016 (1.6%, 3.3%, and 5.3%, respectively). Additionally, in September the IFA projected that franchise industry growth will outpace that of the overall economy for the seventh straight year in their Franchise Business Economic Outlook and Leader Survey. Confidence among industry professionals seems high as well, with 80% of franchisors, 64% of franchisees, and 76% of their suppliers expecting their businesses to grow within the next year, according to the survey.
As a result of this growth, more entrepreneurs than ever are turning to established and trusted franchise models to help them achieve their business and financial goals. Business lines such as quick service restaurants, retail establishments, and lodging continue to be popular—and profitable—but, for many business owners, the time commitments can be overwhelming. As a result, business services opportunities are gaining more popularity as prospective owners do their due diligence and explore all aspects of a franchise, from its start-up costs and the time commitment to operate the business to its profit potential. Many franchisees that choose one of these opportunities cite more traditional business hours, which allow more off-time than other opportunities, as a major contributing factor to their decision.
With the outlook for the franchising industry appearing bright even in the face of an otherwise contentious time in our national history, 2017 and 2018 appear to be an ideal time for aspiring entrepreneurs to consider franchise ownership. And for those that may be looking to change the pace of their lives, low-cost opportunities with traditional business hours, such as AtWork, may seem most appealing. If you’d like more information about how the AtWork franchise opportunity—which offers four profit centers for a single franchise fee in the nearly $160 billion staffing industry—can help you realize your entrepreneurial dreams while achieving a better work/life balance, click HERE or call 888-553-1745 today!