On March 22nd, The International Franchise Association released numbers from their Franchise Business Index, an economic index reading of the franchise industry’s health. The FBI increased to 107.7 in February 2012: this is the sixth consecutive month the index has increased. IFA has said the index was up 1.4% from February 2011.
The Franchise Business Index, designed by IHS Global Insight for the IFA, measures the franchise industry’s growth and role in the U.S. economy through a multitude of factors including growth indicators of prevalent industries in franchising and the general franchising environment.
Indexed data includes figures from (not limited to):
As a basis for the Index, the economic conditions from January 2000 are used as the baseline (FBI 100).
IFA President and CEO Steve Caldeira is quoted saying:
“The franchise industry is a unique business sector and a vitally important contributor to the U.S. economy spanning some 300 lines of business, supporting nearly 18 million jobs, 825,000 establishments, and providing for over $2.1 trillion in economic output.”
The IFA also made an update to their yearly economic outlook for 2012. The biggest change is a decreased in the forecasted increase of franchise establishments for 2012. The original forecast was 1.9%, which has been updated to 1.6%. IFA will continue to update the Franchise Business Economic Outlook report on a quarterly basis in 2012.