"Given adequate financing and a strong pro-growth legislative and regulatory environment, franchise businesses can accelerate job creation in America quicker than non-franchised businesses," said IFA President & CEO Steve Caldeira. "Due to its structured, scalable and proven business model, the franchise industry can be a true locomotive of local job creation as evidenced by the industry's 40 percent economic output growth rate over the past decade."
However, the latest IFA Small Business Lending Matrix & Analysis, prepared for the IFA Educational Foundation by FRANdata, projects a 20 percent lending shortfall to franchise businesses in 2011, and shows 82,000 jobs would not be created in 2011 unless access to credit improves.
Don Graves, Executive Director of the President's Council on Jobs and Competitiveness, noted the contributions of franchise businesses to the U.S. economy at the IFA Small Business Lending Summit last month.
"What the IFA has done and what your members have done best is create those businesses that will meet market needs and create a great model that you can spread those businesses around the country," said Graves.
The Summit was the kick-off event in a long-term IFA-led campaign to get America lending again to franchising and accelerate job growth throughout America. IFA organized the Summit in conjunction with the Consumer Bankers Association, CIT, the National Association of Government Guaranteed Lenders and the National Restaurant Association.
Following the Summit, IFA and its partners have formed a working group to address the projected decrease in lending to franchise businesses and identify solutions going forward to spur economic growth and job creation. More information about IFA's efforts to improve credit access is available at http://www.franchise.org/IFACreditAccess.aspx.
IFA recently provided members of the 112th Congress with new data showing the impact of franchising in their state and congressional district, while also outlining "Solutions for the Economy," the franchise business community's public policy goals that encourage economic recovery and job growth.
"IFA supports public policies that encourage economic recovery and job growth in the franchise business community, said IFA President & CEO Steve Caldeira. "These include initiatives that increase small business access to credit, eliminate tax uncertainties, reduce the cost of health insurance and support veterans and minorities as small franchise business owners."
According to the new data, there are over 825,000 franchise businesses across 300 different industries creating nearly 18 million jobs and generating over $2.1 trillion to the U.S. economy. The full report, The Economic Impact of Franchised Businesses, Vol. 3, conducted for the IFA Educational Foundation by PwC, is available at www.buildingopportunity.com and includes breakdowns showing the economic impact of franchise businesses in each state and congressional district.
In order to demonstrate how franchising is building local businesses one opportunity at a time, the IFA has been featuring some of the most iconic and emerging brands in franchising through a print and online advertising campaign in Roll Call, POLITICO, CQ.com, and National Journal. These ads have featured Dunkin' Brands, Inc. (Dunkin' Donuts and Baskin-Robbins), Express Employment Professionals, Jani-King, McDonald's, and BrightStar Franchising, LLC.
The President's Council on Jobs and Competitiveness was created to provide non-partisan advice to the President on the best ways to strengthen the Nation's economy and ensure the competitiveness of the United States and on ways to create jobs, opportunity, and prosperity for the American people.
About the International Franchise Association
The International Franchise Association is the world's oldest and largest organization representing franchising worldwide. Celebrating 50 years of excellence, education and advocacy, IFA protects, enhances and promotes franchising through government relations, public relations and educational programs. Through its awareness campaign highlighting the theme, Franchising: Building Local Businesses, One Opportunity at a Time, IFA promotes the nearly 18 million jobs and $2.1 trillion of economic activity generated by franchising. IFA members include franchise companies in over 90 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development