The Strong Outlook for Franchises in 2015

For the last four years, the rate at which franchises have grown and created new jobs has been faster than the rest of the economy. Based on recently published research, that trend will continue in 2015. Since growing faster than the rest of the economy for five straight years is no small feat, a lot of people want to know what the secret sauce of franchising is that has allowed it to continue performing so well.

Understanding the Basics of Franchising

During the course of 2015, franchising is slated to contribute around 3% to the total GDP of the United States. That marks a projected increase of 5.1% for the franchise sector’s contribution to GDP. Given that franchising includes owners that range from local operators to veterans, it’s easy to understand why franchising is something that’s frequently (and rightfully) touted as an American success story.

Not only does this practice empower people from all walks of life to become business owners, but those owners are also creating new jobs at a very impressive rate. In December 2014 alone, the franchise industry was responsible for creating 38,000 new jobs in the US! Over the course of 2015, projections put the number of new jobs created by this industry at slightly less than 250,000. 65% of the employees working for franchises are in the food and hospitality industry, while 29% are employed by a franchise in the services sector (including commercial and residential services).

Potential Franchise Challenges in 2015

Although the 2015 outlook for franchises is very bright, this sector couldn’t be considered part of the business world if there weren’t at least a few potential challenges that need to be addressed. The first challenge is that franchises have been put on the fast track to increase minimum wage employees’ rate in certain states and cities.

Another challenge is dealing with changing definitions of full-time employees. Specifically, most franchises believe that full-time employment should be defined as 40 hours a week instead of its current definition of 30 hours under the Affordable Care Act.

While these challenges may require creative solutions, there’s nothing so major that it will stand in the way of the franchise sector having another banner year in 2015.

How to Get Involved in This Very Exciting Sector

If you want to be involved in an industry with proven and consistent growth, you should take a long look at what House Doctors has to offer to professionals who decide to become franchise owners. Once you’ve had a chance to learn a little more about House Doctors, please contact us if the franchise opportunity we offer seems like a perfect fit with your skills and goals.