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Despite a slow-moving economy, the US franchise industry is expected to grow in 2012 according to a recent report from IHS Global Insight for the International Franchise Association.

The report forecasts growth in terms of the number of American establishments, employment, economic output and GDP. According to the 2012 Franchise Business Economic Outlook, approximately 14,000 new establishments will be added, an increase of 1.9% compared to last year. Employment is expected to continue its growing trend from 2011 with another 168,000 new jobs, representing an increase of 2.1%.

In terms of economic output (sales) of franchise businesses, the report estimates a 5% growth from $745 billion to $782 billion. A 5% growth is also expected regarding franchise industry’s contribution to the US GDP, with $21 billion.

Apart from this insightful and encouraging overview, the future of the franchise industry has also been analyzed at the Franchise Expo South which took place on January 20-22, 2012 at the Miami Beach Convention Center in Florida, where visitors had the opportunity to look into many aspects of the industry, from the basics of starting a franchise business to launching a brand globally. Franchise Expo South is Southeast’s largest franchise show that attracts entrepreneurs, particularly from South Florida, Latin America and the Caribbean.

The entrepreneurs present at Franchise Expo have discussed adding more jobs to the South Florida economy considering the American troops which are expected to be re-entering the workforce. Tom Portesy, president of MFV Expositions, highlighted the franchising benefits in the US economy:

In fact, more than 825,000 franchises support 18 million U.S. jobs and contribute $2.1 trillion to our nation’s economy, proving that franchising has a significant impact.

Chris Delacey

WE GET YOU QUALITY LEADS. FASTER. We're not just another franchise portal site, we're a superior franchise portal site.

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One of the biggest thrills of going to a foreign country is being able to see the types of businesses and franchise concepts that have been huge successes overseas, but have no presence back home. It’s kind of like getting to have a sneak peak into a new store, before anyone even knows what the new store is selling.

International franchising is about taking a concept and a franchise that has a huge presence in once country, and being able to bring that concept and the huge market potential back home to yours.

International Franchising depends heavily on knowing the potential demand for the product or service in the new market.

James Walker, writing for RedHotFranchises.com, gave the following advice on market concepts

There is a very good chance that the opportunity you are interested in has a competitive concept in your country, but you should assess the concept beyond the “industry” level. A market research study can address and hopefully fill in the gaps of your franchise assessment. A franchise lawyer or consultant can also be an asset to your investigation. A concept that is too new or innovative may not be successful in a smaller market that lacks foreign influence and persuasion

There are, of course, amazing incentives for those who can bring a new franchise concept into new territories. One of those benefits is the possibility of negotiating incentives:

If you become the first franchisee in your country, the franchisor will be required to invest a lot of money to introduce the concept. It is in your best interest to negotiate mutually agreeable terms to lighten the financial load for your pilot location. The franchisor may be inclined to discount or waive the franchise fee. You may even have some control over sight location and other responsibilities usually undertaken by the franchisor

If you hare thing of international franchising, the global market is here.

Chris Delacey

WE GET YOU QUALITY LEADS. FASTER. We're not just another franchise portal site, we're a superior franchise portal site.

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