Category: Economy

2024 IFA Franchisor Survey

By Greg Cory

The report highlights the ongoing labor challenges encountered by franchise businesses. Concerns of inflation has faded for the businesses, but the cost of borrowing and the slowdown in consumer demand has started to challenge franchises. Significantly, there is a notable increase in budget allocations for technology, innovation, and marketing as well as training and development, crucial for the success of franchise systems.



As new joint employment standards loom, franchisors are highly concerned if they have to increase control or reduce support to their franchisees.



The survey reflects a diverse respondent pool, encompassing 215 brands from 26 different industries with franchise units ranging from less than 10 to over 12,000. Executives from private family-owned systems to platform companies and publicly listed firms contribute to the varied perspectives presented in this report.

2023 Annual Franchisee Survey

By Greg Cory

The International Franchise Association’s (IFA) 2023 Franchisee Survey shows the impacts of inflationary pressures on franchised businesses. The report highlights that while inflation is improving as compared to 2022, it is still having a significant impact on franchised businesses across all sectors with the cost of labor being the biggest driver. The report also highlights a number of ways that being part of a franchise system provides advantages for navigating rising costs.

IDENTIFYING AND ADDRESSING TODAY’S LABOR TRENDS IN FRANCHISING

By Greg Cory

The International Franchise Association annual study on labor trends in franchising, showing that the availability of qualified labor remains the number one challenge facing franchised businesses today, conducted by FRANdata. The survey shows slight improvement in labor market conditions, but four out of five franchised brands continue to experience constrained growth due to labor challenges.

Potential Consequences of the NLRB Joint Employer Rule

By Greg Cory

Ahead of the NLRB’s forthcoming joint employer rule, survey conducted in partnership with Oxford Economics shows significant concerns among franchisees with broadened joint employment standard, decreasing access to business ownership, causing disruptions to the franchise relationship, and increasing costs.

Should a Recession Concern Franchise Owners?

By Greg Cory

For almost a year now, economic pundits in the U.S. have been playing the “will it or won’t it” game with whether we’ll see a recession in the next six to 12 months. Experts on both sides haven’t been able to build a consensus on the certainty of an economic downturn and the mixed signals our economy has been showing haven’t helped tip the scale one way or the other. In uncertain economic times, it may seem like a challenge to plan out your next career or business move with confidence. But franchising does give you many advantages in meeting this challenge.

2022 FRANCHISEE INFLATION SURVEY

By Greg Cory

Like most businesses, the franchise ecosystem has experienced a negative impact of inflation lately. Approximately 90% of franchisees witnessed a moderate to substantial inflation impact in their business. Some industries such as lodging, QSR*, and child-related are feeling a greater impact than other industries. Being in a franchise system has helped franchisees by sharing best practices with other franchisees, customer marketing, and resolving supply chain disruptions. Some brands have helped their franchisees in employee recruitment.

A Look Back: How Franchises Fared in 2021

By Greg Cory

2021 was an economic bounce back year for franchises despite the negative impacts of the COVID-19 pandemic on businesses in 2020, setting the stage for some very positive franchise industry outlooks in 2022 (link to previous blog). In this post, we’re going to review what factors made 2021 a turnaround year for franchises and look at some of the data highlighted in The International Franchise Association (IFA)’s recently released 2022 Franchising Economic Outlook.

Franchises led the 2021 recovery, and they’ll do it again in 2022—if policymakers let them

By Greg Cory

Across every sector, franchises were a significant engine powering the 2021 economic recovery. This year, we forecast that the local businesses behind recognized brands will continue to expand—unless a more consequential threat than COVID-19 materializes in the form of policies that undercut the franchise business model. Wherever they spring up, these proposals should be rejected and reversed so franchises can continue providing opportunity to Americans on every rung of the economic ladder.

It’s Time for California Lawmakers to Stand Up for Local Restaurants

By Greg Cory

This week, the California State Assembly is attempting to revive the so-called “FAST Recovery Act” or AB 257 after it failed in the legislature last year. This legislation would effectively end the existing franchise model in California, an industry that supports nearly 25,000 quick service restaurants in the state, employing over 373,000 Californians. This bill would hurt the entrepreneurs who have built these local businesses, the hundreds of thousands of jobs they support, and the communities in which they operate.

IFA Fitness Members Meet with Congressional Leaders on the GYMS Act

By Greg Cory

On December 8th, IFA’s Michael Layman and Haider Murtaza organized U.S. Senate meetings for IFA members to discuss topline issues affecting the fitness industry. IFA Members included Chuck Runyon, CEO and Co-Founder of Self Esteem Brands, and Katie Muehlenkamp, franchise owner of the Bar Method in Brooklyn, NY. IFA members were also joined by industry partners, Liz Clark, President and CEO of The Global Health & Fitness Association (IHRSA), Brett Ewer, Head of Government Relations of Crossfit, and Patrick Connolly of Velocity Public Affairs.

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