While the U.S. economy continues growing at a slow and steady pace, 2014 projections for franchises remain positive. In fact, the second quarter update from the International Franchise Association (IFA) Educational Foundation show stronger employment and output forecasts than the first quarter’s estimates provided.
The latest news in Franchise Business Economic Outlook for 2014 indicates that franchises in the U.S. will grow at a faster rate than the national economy. This means that franchises will create even more jobs than in 2013 and contribute more to the country’s GDP than last year.
One of the reasons for the projected growth is the expectation that consumer confidence and spending will increase relative to 2013. Additionally, new home construction, and home sales in general, are both expected to gain momentum after a slow start in the first quarter of 2014. The IFA report also found:
- Franchise establishments will create an estimated 200,000 new jobs in 2014, boosting employment figures.
- The number of franchise businesses in 2014 is expected to rise to 1.7 percent from 1.4 percent in 2013.
- The franchise idustry's GDP will increase in 2014, accounting for $21 billion.