After several years of growth in the number of units, jobs and economic output, the franchising industry will see declines this year, according to a report released yesterday by the International Franchise Association’s Educational Foundation and prepared by PricewaterhouseCoopers LLP.
The specific forecast for this year: 10,000 franchise units gone; 207,000 jobs lost; $4.2 billion in the value of goods and services vanishing.
Between 2005 and 2007, the industry found steady growth in all aspects of business, reaching in 2007 some 847,000 franchise units, providing more than 9.8 million jobs and generating $816 billion in economic output. Growth slowed last year and this year the number of units, jobs and output all are expected to fall, according to the economic outlook report, the first time the IFA has issued such a report.
“After steady growth in franchised businesses for nearly a decade,… we do expect modest overall declines in all three of those categories [this year],†said Matthew Shay, IFA president and chief executive, in yesterday’s conference call.