The franchise model has stood the test of time, most notably through fast food outlets and restaurant chains. Recent figures indicate just how much this business model is performing in terms of contributing to our national economy. Beyond just revealing significant contributions to boosting employment figures, the results have also noted that the evolution of the franchise model to include innovative hybrid models for further job opportunities is being used to expand other possibilities in previously unforeseen markets and organizations.
This past October delivered one of the largest one-month gains since the ADP Research Institute started tracking numbers. The research company found that American franchise businesses added 52,000 new jobs to the economy during the month of October.
While franchise restaurants accounted for close to 75% of this growth, other franchise operations are showing signs of growth potential, including auto parts companies and service repair franchises, which represent another 22% of the growth in jobs during October.
What also emerges from this research is the appearance of a greater variety in the type of franchises available, including accommodations, personal care, real estate, retail, professional services, building and construction and education. Within the changing environment, more business niches are considering the franchise model or a hybrid of that model to grow and expand their own operations rather than the traditional growth of a business with the potential of multiple outlets or locations.
New Business Segments for the Franchise Industry
With expansion flexibility, efficient supply chains, lower overhead and enhanced profitability, more entrepreneurs are recognizing the benefits of franchising. For example, Dr. Jason Helfrich, Founder and CEO of 100% Chiropractic, started his company to help new chiropractors get their offices opened up quickly without having to contend with the cost and complexity of the infrastructure, marketing, and operational procedures required. The ability to get considerably more support than they would on their own – has helped attract more chiropractors to the franchise option rather than starting from scratch. It’s been a win-win for the chiropractors that have signed up for Helfrich’s model as well as for the founder himself who has helped 20 chiropractors get their businesses up and running over the last five years.
URL : http://www.forbes.com/sites/steveolenski/2015/12/17/new-franchise-models-boost-employment-figures/
