The number of franchise establishments in the United States is expected to grow by 1.7 percent by the end of 2014 according research analysis by the IHS Global Insight. That will represent an improvement over last year’s 1.3 percent growth.
The report, Franchise Business Economic Outlook 2014, also shows that the franchise sector’s output will total $839 billion. That’s 4.7 percent growth over 2013.
Franchising is one of the industries that has shown steady growth despite recent global economic woes, according to Forbes.com, and the industry is likely to see an uptake in companion care, assisted living, in-home care and transportation franchisees as Baby Boomers are retiring in greater numbers.
“It’s an aging population. People want to live longer and live better,” Alisa Harrison of the International Franchise Association was quoted by Forbes. “That’s why you’re seeing franchises pop up for 24-hour fitness, massage and more. The Baby Boomers are starting to take care of themselves now. And that makes for a healthier marketplace for franchisors.”
Check out some of the other industries that are trending growth in the franchise sector.
- Business Services will lead the franchise business lines in employment and establishment growth rank third in output growth.
- Real Estate will rank first in output growth, third in establishment growth, and fourth in employment growth.
- Quick Service Restaurants – the largest franchise business line – will rank third in employment growth in 2014 and second in output growth.
With business grows and becomes more complex for expanding franchises, many franchise operators will need to move off basic accounting and homegrown spreadsheet systems. As franchisees expand to include new brands, new lines of business and new locations including overseas, they will need a full enterprise resource planning solution to keep all the balls in the air and all the gears running smoothly.
The Land Down Under’s increased confidence in cloud based business software for franchises has resulted in “consistent reporting and more real-time data, increased oversight, flexibility in training styles and reductions in paper-based training costs” according to Franchise Sector Indicator Spring 2012 report from PWC, an Australian consulting firm. Here are some more statistics
- 68 percent of franchise systems have reported that customer enquiry levels either stayed the same or increased
- 77 percent said that spend per customer had stayed the same or increased, refecting the ability of franchisees to market their businesses, offer high quality customer service and up-sell despite tough economic conditions.
- 14 percent said new technology systems were a top reason for economic growth
Microsoft Dynamics GP offers incredible value for franchisees and franchisors alike. See how myGPcloud and Dynamics GP can help you streamline you franchise operation and turn your data into dollars with business accounting software for franchises that goes beyond basic accounting to include a robust enterprise resource planning system in the cloud.