New York, NY (Press Release – December 16, 2011) – In all the talk about corporations, small business, unemployment, and the United States’ limping economy, franchising — one of America’s most powerful home-grown engines for jobs growth and economic expansion — is often forgotten in the analysis.
A new infographic entitled “Franchising and the Economy” developed by researchers at FranchiseHelp.com aims to address that issue, with an illustration that reveals the true significance of franchising within the U.S. economic landscape.
Accounting for hundreds of thousands of local small businesses, millions of jobs, and billions in direct GDP contribution, franchising — developed by American entrepreneurs in the mid-1800s and perfected over generations — is more crucial to the U.S. economy today than ever before, yet remains largely absent from most talking heads’ and politicians’ economic recovery discussions.
It’s a classic case of missing what’s right under one’s nose.
In a franchise system, a national headquarters (the “franchisor”) guides and oversees locally owned and operated establishments (the “franchisees”) that have licensed the right to conduct business under a common system and brand. The model was first popularized by Isaac Singer, who in the 1850s licensed out the rights to manufacturing and selling his new sewing machine; the approach was later expanded and refined as automobile manufacturers franchised their vehicle sales processes to local dealers and — most famously — as food brands such as KFC, McDonald’s, Carl’s Jr. and their peers hit on franchising as a means to effect rapid expansion.
Most critically, some of the most celebrated global franchise brands today — including KFC, Pizza Hut, Baskin Robbins, and many more — were launched during times of deep recession in the U.S. And franchised businesses as a whole continue to serve as a model for productivity and wealth creation in the nation.
According to a 2011 PricewaterhouseCoopers report and data from the International Franchise Association, franchised businesses in 2011 will account for nearly 800,000 local establishments and some 8 million private sector jobs across nearly every sector of the economy.
While Americans of every stripe interact with franchised businesses everyday, few realize how critical franchising is to the U.S. economy. The infographic released by the franchise research analysts at FranchiseHelp.com illustrates the true influence — on recovery, growth, jobs creation, and overall output — of this quintessentially American business model.
The Franchising and the Economy Infographic may be embedded in any website, blog, or publication by copying and pasting the simple embed code provided on the FranchiseHelp blog where the infographic is hosted (http://www.franchisehelp.com/blog/franchising-and-the-economy-infographic).
Since 1996, FranchiseHelp.com has been the leading resource for information and research on buying a franchise business, helping thousands of people navigate the path from cubicle life to self-employment and entrepreneurship. Through its editorial content, directory of franchise and business opportunities, franchise disclosure documents, and industry-leading research, FranchiseHelp.com is changing the way individuals find and select a franchise. Founder Mary Tomzack has been a featured panelist for the Alumnni Association of Harvard Business School and in 2011 FranchiseHelp.com was named one of the most useful sites for entrepreneurs by The Wall Street Journal.