The Outlook for Franchising in 2015

IMG_1300If you’re considering starting your own business, then you may already know that you want to buy a franchise. After all, a franchise offers many benefits, including the following:

  • Start your company with an established brand and a positive reputation
  • Increase the chance of your success and become profitable faster
  • Use a proven business model, with time-tested business, marketing and sales plans
  • Receive ongoing support from your franchisor

So, you know the benefits of franchising, but you might be curious about the economic outlook for the franchising industry. In January 2015, IHS Economics and the International Franchise Association published a report, “Franchise Business Economic Outlook for 2015.” Here are some of the highlights:

  • The number of franchise businesses is expected to increase by 1.6 percent in 2015, which matches the pace of growth in 2014.
  • Franchise employment is expected to increase 2.9 percent in 2015, while total private nonfarm employment will increase 2.4 percent.
  • The growth outlook differs among franchise groups. For example, output growth in the retail food business line is expected to be 3.9 percent, whereas lodging and real estate are expected to be 6.3 percent*.
  • The Franchise Business Index showed strong growth in Q4 2014, and in November 2014 the index was up 3.1 percent compared to November 2013. That’s the biggest year-over-year gain since before the recession.
  • Employment in the real estate franchise industry will experience the biggest growth in employment in 2015. The growth rate is expected to be 0.8 percentage points higher than in 2014.
  • Franchise businesses accounted for approximately 3 percent of U.S. GDP ($495 billion) in 2014. Based on the report’s forecasts for 2015, nominal GDP of the franchise is expected to increase by 5.1 percent to $521 billion.

This is great news if you’re thinking of starting a franchise business, and the outlook is particularly positive for franchises in the real estate industry. If you are considering a real estate franchise, have you thought of becoming a home inspector? National Property Inspections in the United States and Global Property Inspections in Canada offer you an outstanding opportunity in the home and commercial building inspection business. We’ve been helping people like you become successful entrepreneurs for nearly 30 years, and we have a very high franchisee satisfaction rating. Contact us for more information about becoming an NPI or GPI franchise owner.

* National Property Inspections and Global Property Inspections are considered franchises in the real estate industry.

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