A new report from the IFA (International Franchise Association) finds that tax reform and regulatory relief are leading to optimism and confidence in the franchise world. The result is a strong franchise sector that is expected to grow faster than the rest of the U.S. economy, according to the IFA’s 2018 Franchise Business Outlook.
“Over the last year, Congress and the Administration have set their sights on removing the barriers and brakes holding our economy back and stifling job creation,” said IFA President and CEO Robert Cresanti. “Regulations have been trimmed, taxes have been cut, and, as a result, the franchise community has continued its economic momentum. As we move into 2018, we expect lawmakers will remain steadfast in their support for a strong business environment. Franchises will thrive and continue to strengthen the American economy by providing jobs in every community, playing an important role in the lives of Americans, and supporting a variety of job creating industries, from manufacturing to agriculture.”
The Franchise Business Outlook for 2018 projects the franchise sector’s 2018 economic contributions. Key findings include:
- Franchise establishments are expected to grow an additional 1.9 percent in 2018 to 759,000.
- Franchise employment is projected to grow 3.7 percent, continuing to outpace the rest of the economy.
- The gross domestic product (GDP) of the franchise sector is forecast to exceed U.S. GPD growth and increase by 6.1 percent to $451 billion. The franchise sector will contribute approximately 3 percent of U.S. GDP in nominal dollars.
- Franchise business output is expected to increase by 6.2 percent to $757 billion.
- Franchise Personal Services experienced strong growth over the past year and is expected to rank first in growth of the number of establishments and in employment in 2018.
“Congress and the Administration have taken monumental steps toward creating a pro-business America – and business owners are responding,” said Wyoming based Taco John’s CEO Jim Creel. “The tax bill, coupled with fewer regulations, is freeing up resources for more jobs, higher wages, and more business investments.”