As professionals bid adieu to the year 2012, there are countless news articles circulating which study and reflect upon various facts and figures derived over the course of the year. Many other fascinating (albeit perhaps less precise) studies are projecting possible patterns which may unfold throughout 2013.
For those in the franchise consulting field, perhaps no other study is as interesting as the "Franchise Business Economic Outlook for 2013," conducted by economic analysis and forecasting firm ISH Global Insight. The study, released December 17, 2012, expects momentum in the franchise sector throughout 2013 will continue to outpace growth in other business sectors, just as it did in 2012.
"Franchise businesses emerged from the recession stronger due to the strength of the franchise business model and the strong support of franchisors working with franchisees to sustain profitability," said International Franchise Association President & CEO Steve Caldeira, confirming the findings in the report. "Franchise businesses are now poised to accelerate growth plans."
The study did predict, however, that gains made in 2013 would not be quite as strong as the year preceding.
HIS Global Insight estimates that the number of franchise establishments in America will increase by 1.4 percent in 2013, just short of the 1.5 percent growth in 2012. It also forecasts that employment in franchise establishments to increase 2.0 percent in 2013, following a gain of 2.1 percent in 2012.
Weaker investment in nonresidential structures and a larger decline in federal spending are indicated as the primary sources of the expected slowdown in franchise sector GDP growth. But these factors affect all sectors economy-wide, the study points out, and the franchise industry is expected to fare better than almost all other trades.
Contact a franchise consultant for more information on how a specific franchise business or industry fared in 2012, and to forecast its performance in 2013. For example, this report detailed the steady acceleration of full-service restaurant sales from 6 percent in 2011 to 7 percent in 2012. A franchise consultant can provide and elucidate such information, proving especially valuable before one purchases a franchised business in 2013.
This article was written by Upside Group Franchise Consulting. Upside Group Franchise Consulting provides traditional marketing experience from multiple disciplines, as well as franchise marketing expertise in advertising, sales, public relations, franchise manuals and documentation, training, and business development.