After three years of restrained growth due to the recession and its lingering effects, franchise businesses will begin to show signs of recovery in the year ahead, according to a new forecasting report by IHS Global Insight for the International Franchise Association Educational Foundation. “The Franchise Business Economic Outlook: 2012” projects the number of franchise establishments in the U.S. will increase by 1.9% in 2012. Employment growth in franchise establishments rebounded in 2011 to post a gain of 1.9%—more than keeping pace with employment growth economy-wide—and the report says the trend will continue next year, with 2.1% forecast jobs growth. Total sales from franchise businesses grew by an estimated 5.3% this year, and 2012 sales growth is forecast to hit 5%. In a survey of franchisors and franchisees, 54% say they plan to add jobs in the year ahead. To review the full 28-page report, a summary and the complete survey findings, click here.
Franchise growth expected to rebound in 2012
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