Franchise

2023 IFA Franchise Economic Report

The International Franchise Association, in partnership with FRANdata, recently released its annual Franchising Economic Outlook Report. This 2023 report, which analyzes franchise performance over the previous year and forecasts the year ahead, predicts moderate growth for franchising this year. Despite current economic challenges over the last few years, franchising continues to grow, showing the power of the business model to help business owners navigate challenges ahead and continue driving economic growth.

In 2023, it is predicted that the number of franchise units will increase by 15,000 units, reaching 805,000 franchised businesses in the U.S. Franchising will add 254,000 jobs to the U.S. economy, employing approximately 8.7 million people in 2023, and generate $860.1 billion in economic output. Service-based industries and quick-service restaurants are expected to see the biggest growth among industries, with Texas, Illinois, and Florida as the top states for franchise growth.

Read more findings in the  Franchise Economic report, including industry and state-by-state breakdowns here.

Three Reasons to Utilize a Franchise Broker

The world of buying and selling a franchise is so vast, it’s often hard to know where to start. With close to 4000 active franchise concepts, if you’re a buyer looking to purchase a franchise, the options can be daunting. Similarly, if you’re a franchisor (franchising company) hoping to expand your system or resell a few locations, finding a qualified buyer can be time consuming and stressful. A qualified franchise broker will work with buyers and franchisors in order to find the buyer that is the best fit for each specific opportunity. That being said, listed below are three reasons to utilize a Franchise Broker for the buyer process.

First, Franchise Brokers are experts at finding qualified candidates for franchisors. Some use personality tests, while others use questionnaires and interviews. However, both have the same end goal of learning all that they can about a buyer in order to match them to a specific franchise opportunity. For example, the buyer who matches well with an auto parts franchise will probably not match well with a restaurant franchise, or vise-versa. Working with a broker who can weed through buyers and find the right one for each franchisor is key.

As a buyer, allowing a broker to find franchises that best suit your lifestyle, investment desires, and interests is helpful. It keeps you from spending all of your time researching thousands of franchises to find one that fits you.

Secondly, Franchise Brokers are able to help buyers understand the unique world of franchising. They have a great knowledge of FDDs (Franchise Disclosure Documents) and FAs (Franchise Agreements) as well as a myriad of additional business acquisition documents. Brokers have the ability to explain these documents to first-time franchise buyers.

Finally, a Franchise Broker can speed up the processes of buying a franchise, benefitting all parties. A broker serves as the primary business advisor to the buyer, guiding the buyer through complex world of contracts, lending, landlords, and franchise disclosure/discovery.

Regardless of your role in the franchise acquisition process, utilizing the assistance of a professional franchise broker up front will save lots time and frustration at the end.

Franchisors, if you’re ready to work with us, click here.

Buyers, let us find you the perfect franchise, click here.