It’s not as if franchise growth is anything new. For instance, 2016 saw franchise growth surpass non-franchise businesses AND the economy as a whole. Now that 2017 is half over, we’re seeing franchise growth trend upward; it’s projecting to exceed the previous year’s growth by almost $40 million.
According to the International Franchise Association (IFA), there are more than 733,000 franchise businesses which hold a collective 7.6 million jobs. This equates to $674.3 million in economic output, which further totals to 2.5% of the United State’s GDP.
Thus far, the Franchise Business Economic Outlook from January 2017 has proven to be fairly accurate, giving us the following statistics:
If you’ve wondered why many entrepreneurs are looking to get in on an existing business with franchise opportunities instead of creating their own, this explains why. The franchising business is certainly looking attractive right now to entrepreneurs who want to mitigate their business risk.
However, buying a franchise takes some hefty capital, and maintaining the franchise takes even more. Where do entrepreneurs find this kind of cash? There are a variety of different franchise industry loans available.
Loan Options for the Franchise Industry
A lot goes into buying and maintaining a franchise. While a lot of the heavy lifting has been pre-done (like overall marketing and brand recognition), the franchise owner is still responsible for their business as if it were their own. Thus, a lot of capital goes into making sure a franchise is running smoothly, in addition to the franchise fee needed to own the franchise in the first place.
Finally, franchises are often varied when it comes to business type and industry. If you own a franchise or are looking to purchase a franchise, consider an alternative funding institution like Qualifi . We offer personalized service to our clients, and we have well-fostered relationships with lenders that can help you realize your business dreams.
