I N S T I T U T EAccelerating the Mission of Franchising
More than 2,000 executives are actively partic-ipating as candidates and graduates in the
Certified Franchise Executive program. At the IFA Annual Convention, 163 executives will receive their CFE designation, including the U.S., Australia, Dubai, Mexico, The Philippines, Taiwan, and Thailand. ICFE’s mission is to enhance the professionalism of franchising by certifying the highest standards of quality training and education. Learn how you can become a CFE at www.franchise.org/cfe.
“As an educator, I understand that education is THE key to career success. Becoming a Certified Franchise Executive is THE key to franchising success.” —GAIL JOHNSON, CFE, FOUNDER AND CHAIRMAN RAINBOW STATION.
www.franchise.org/cfe
DiversityFran helps IFA members reach emerging markets, and increase diversity in franchising,while educating minority communities about the great opportunities in franchising. DiversityFran uses the power of diversity to accelerate the mis-sion of franchising.
Learn how your company can join other leading brands to partner with the Diversity Institute and organizations including Latino Leaders Magazine, the National Black MBA Association, the National Urban League, Univision, the NAACP, and the U.S. Hispanic Chamber of Commerce and others.
MINORITYBUYING POWER
IN 2015
$2.1 TRILLION
www.franchise.org/ diversityfran
I N S T I T U T EAccelerating the Mission of Franchising
NextGen In Franchising is dedicated to creating a talent pipeline for future franchi-sees, franchisors and suppliers, by engaging and educating the next generation. NextGen engages young entrepreneurs and students who are seeking careers and business opportunities in the franchising industry. These young men and women represent a huge talent pool from which to seek future franchise owners, managers and employees for franchise businesses, and entrepreneurs with ideas and energy for new franchise concepts.
Last fall the second annual NextGen In Franchising Global Contest was launched at www.nextgenfranchising.org. More than 250 entries were received from young entrepre-neurs with early-stage franchise businesses, from across the U.S. and around the world. The top 20 winners were selected by judges to participate in the NextGen in Franchising Accelerator Program at the IFA Annual Convention in San Antonio.
Founded in 1991 by Don Dwyer, Sr., VetFran offers assistance, jobs, and financial incentives to veterans seeking to become franchise owners. Since 2011, more than 238,000 veterans and spouses have found employment in franchising, and more than 6,500 have become franchise owners.
To learn more about how your company can join VetFran, visit www.franchise.org/vetfran.
“Thousands of servicemen and women are exiting from the armed services and transitioning to civilian careers. Many will need to gain experience in the commercial world to prepare them for future success. VetFran has been an outstandingly successful program for our veterans, providing jobs and opportunities for thousands of veterans and their spouses in recent years. Franchising and veterans make a great combination and truly a winning proposition!”
—GORDON LOGAN, FOUNDER AND CEO, SPORT CLIPS HAIRCUTS
“I am thrilled to be a part of NextGen and I am looking forward to the years ahead of helping young entrepreneurs to achieve their dreams in franchising as I have.”
—DAVID MCKINNON, CFE, SENIOR ADVISOR TO THE BOARD, THE DWYER GROUP
On September 28th the Foundation hosted the first Franchising Gives Back Annual Awards Dinner at the JW Marriott in Washington, D.C. Fifteen IFA members were recognized for their outstanding charitable and community support initiatives in five categories—Spirit of Franchising, Enduring Impact, Newcomer, Support Our Veterans, and Innovation and Impact.
Winners were recognized with an extensive media campaign to put the spotlight on how franchise businesses support their communities through-out the year. Established by a generous donation from Roark Capital Group, Franchising Gives Back salutes the best, most innovative community leaders and charitable programs nationwide. See profiles of the award winners and learn how your company can participate by visiting www.franchisinggivesback.org.
2016 FRANCHISE BUSINESS ECONOMIC OUTLOOK
Franchise Business Economic Outlook, 2007-2016
Franchise Businesses Create Jobs Faster than Other Businesses
FRANCHISE BUSINESS ECONOMIC OUTLOOK
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
770,835 774,016 746,646 740,098 736,114 747,359 757,857 769,782 782,573 795,932 0.4% -3.5% -0.9% -0.5% 1.5% 1.4% 1.6% 1.7% 1.7%
7,994,000 8,028,000 7,800,000 7,780,000 7,940,000 8,127,000 8,334,000 8,573,000 8,834,000 9,112,000 0.4% -2.8% -0.3% 2.1% 2.3% 2.5% 2.9% 3.0% 3.1%
$675 B $696 B $674 B $699 B $734 B $768 B $804 B $845 B $892 B $944 B 3.2% -3.2% 3.6% 5.0% 4.7% 4.7% 5.0% 5.6% 5.8%
$403 B $410 B $405 B $414 B $434 B $453 B $473 B $496 B $523 B $552 B 1.8% -1.2% 2.2% 4.8% 4.4% 4.4% 4.8% 5.5% 5.6%
EstablishmentsPercent change Direct Employment Percent change
OutputPercent change
GDPPercent change
Source: IHS Global Insight
Source: IHS Global Insight
Source: IHS Global Insight
Source: IHS Global Insight
The output of franchise establishments in nominal
dollars in 2016 will increase 5.8 percent from $892 billion to $944 billion (an increase
of $52 billion).
The number of franchise establishments in the United
States will increase by 1.7 percent in 2016, from 782,573
to 795,932 (an increase of 13,359).
The number of direct jobs in franchise establishments will increase 3.1 percent in
2016 from 8.834 million to 9.112 million (an increase of
278,000).
OUTPUT ESTABLISHMENTS EMPLOYMENT
Franchise Business Economic Outlook by Business Lines: 2016
2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
ESTABLISHMENTSBUSINESS LINES EMPLOYMENT OUTPUT($ BILLIONS)
Amount Percent change over prior year
Amount Percent change over prior year
Amount Percent change over prior year
Automotive
Business Services
Commercial & Residential Services
Lodging
Personal Services
Quick Service Restaurants
Real Estate
Retail Food
Retail Products & Services
Table/Full Service Restaurants
TOTAL
31,968
99,029
64,670
27,479
115,783
159,839
91,950
63,840
103,130
38,244
795,932
1.5%
2.0%
1.6%
1.8%
1.8%
1.5%
1.7%
1.5%
1.9%
1.6% 1.7%
199,300
1,026,700
384,500
771,700
720,500
3,446,800
327,800
535,500
547,000
1,152,200
9,111,900
3.0%
3.3%
2.8%
2.8%
2.6%
3.3%
2.4%
3.2%
3.7%
3.3%
3.1%
43.84
175.60
59.31
96.33
101.53
248.28
57.44
44.61
46.58
70.09
943.60
4.6%
5.9%
4.4%
6.6%
4.9%
6.3%
5.7%
4.7%
6.4%
6.3%
5.8%
EMPL
OYME
NT 20
07-20
16: Franchise Businesses compared to ALL Businesses
-0.9%
0.4%
-2.8%
-0.3%
2.1%
-5.2%
-0.8%
1.8%2.2% 2.1%
EMPLOYMENT DISTRIBUTIONBY SECTOR: 2016
COMMERCIAL & RESIDENTIAL
SERVICES
REAL ESTATE
AUTOMOTIVE
RETAIL PRODUCTS & SERVICES
Food & Hospitality
Services Sector
Real Estate & Automotive6%
8%
11%
6%
4%
4%
2%
ESTIMATES FORECAST (January, 2016)
3.1%
278,
000
JOB
S
13,3
59E
STA
BLI
SH
ME
NT
S
$52
BIL
LIO
N
5.8% 1.7%
BUSINESS SERVICES
PERSONAL SERVICES
FRANCHISING ALL BUSINESSES
January, 2016
RETAIL FOOD
LODGING
QUICK SERVICE RESTAURANTSTABLE/FULL SERVICE
RESTAURANTS
65%
29%
13%
38%
8%6%
2.3% 2.5%
2.3%
2.9%
2.4%
3.0% 3.1%
1.9%
“Franchising Gives Back recognizes and promotes the contributions of franchise business leaders year-round. From supporting Little League baseball teams, to donating food for homeless shelters, to organizing marches for
cancer research, franchise businesses donate billions of volunteer hours and dollars to give back to their communities. Big or small, the combined local contributions of franchising create a significant impact worldwide.”
—STEVE ROMANIELLO, CFE, MANAGING DIRECTOR, ROARK CAPITAL GROUP
In January, the Foundation released the 2016 Franchise Business Economic Outlook prepared by IHS Economics, which forecasts growth in the number of establishments, economic output, and jobs at a higher pace than the rest of the economy. The ADP monthly franchise jobs reports con- tinue to show that franchise businesses are adding much-needed jobs, at a faster pace than other businesses.
The Foundation is anticipating the release of the 2012 Economic Census in mid-February and has engaged PwC to begin work on the Franchise Business Economic Impact Study, Volume 4 and the 5-year (2007-2012) business continuity study, that will compare franchise business performance and sustainability to non-franchise businesses.
Research helps advance IFA’s advocacy efforts by educating lawmakers about the critical role franchise businesses play in the U.S. economy and around the world.
IFA’S MISSION: Protect, Enhance, & Promote Franchising
www.franchise.org
InformationFor more information about Foundation programs and activities, contact the staff:
John Reynolds, CFE [email protected]
Miriam Brewer, CFE Senior Director, Education and [email protected]
Rose DuPont Director, Certification [email protected]
George EldridgeCoordinator, VetFran [email protected]
Gionne JonesSpecial Projects [email protected]
“When franchising industry leaders established the IFA Educational Foundation in 1983, their vision was an organization that would become ‘an active partner with the International Franchise Association—in shaping the future of franchising.’ Their vision is alive
and well today thanks to the generous support of many IFA members who over the years have donated their time, talent, energy and money to the Foundation. I encourage you to get involved and support the Foundation’s programs.”
—DOC COHEN, CFE, CHAIRMAN, FRANCHISE EDUCATION AND RESEARCH FOUNDATION
Special Thanks to Our Major DonorsApple Pie Capital
Arby’s Foundation
The Stewart & Jane Bainum Fund
Melanie Bergeron
BDO USA LLP
Joseph Bourdow
BrightStar Franchising LLC
Choice Hotels Intl.
Choice Hotels Foundation
Coca-Cola Foodservice & On Premise
Lawrence Doc Cohen
DLA Piper LLP
Dina Dwyer-Owens
The Dwyer Group
Jack Earle
Ecolab
Edible Arrangements
Ron Feldman
First Service Brands
Fish Consulting
FOCUS Brands
Franchise Business Review
Franchise Times
Global Franchise Group LLC
Golden Corral Buffet & Grill
Kathleen Gilmartin
Aziz Hashim
Home Instead Senior Care
International Franchise Association
Michael Isakson
Jani-King Intl.
Stephen P. Joyce Fund
Joe & Kristen Lindenmayer
Gordon Logan
John Luther
Marriott Intl.
J. Willard & Alice S. Marriott Foundation
Massage Envy Franchising LLC
David McKinnon
Menchie’s Frozen Yogurt
Tabbassum Mumtaz
PepsiCo Foodservice
Roark Capital Group
The Romaniello Family
Safeguard
Julius & Joanne Shaw
Steve & Judy Siegel
Sport Clips, Inc.
Jim Squire
Shelly Sun
Two Men & A Truck Intl.
The UPS Store
Ken & Vickie Walker
WSI/ Tutor Doctor
To learn more about how you can participate in and support ourprograms visit www.franchise.org/educational-foundation.
A global resource of
EDUCATION and
RESEARCH serving the franchise community.
The Franchise Education and Research Foundation, is a 501(c)(3) tax exempt organization. The Foundation is supported through the generous contributions of IFA members and others. All contributions are tax deductible.