Franchise Businesses Poised for Growth in 2017

As 2016 came to a close, franchise growth had effectively outpaced the economy and non-franchise based businesses. If forecasts for 2017 play out as predicted, owners can expect to see franchise growth exceed the previous year by a whopping $36 billion.


That’s great news for the industry but let’s break down that growth with some hard numbers according to the International Franchise Association (IFA). As accounted at the beginning of the year, there are more than 733,000 franchise establishments supporting 7.6 million jobs, and producing $674.3 billion of the economic output for the U.S. economy, which totals 2.5% of the Gross Domestic Product (GDP).

Those numbers speak volumes, but considering the projected growth for this year, the expected expansion within the industry shows great potential for franchises, employment, and returns based off data compiled by the IFA:

Franchise Business Economic Outlook: January 2017

  • Franchise establishments to increase by 1.6%
  • National job growth to increase by 3.3%
  • Output of franchise sector to increase by 5.3%
  • GDP of franchise sector to increase by 5.2%

Digest all that information and it’s no wonder that so many entrepreneurs seek financial success through owning a franchise business. Luckily for all interested in capitalizing on the industry, there are a few alternative solutions for financing their growing business ventures.

Types of Franchise Industry Loans:

Working Capital: Franchise businesses require flexibility in the amount of funds accessible. Whether the need is to advance local marketing initiatives outside the corporate model or secure cash flow for the unforeseeable, a working capital loan can offer security to endure early stages or proceed with business advancements.

Inventory: Supplies constraints can be a huge pitfall for a business of any level. From high inventory turnover rates to increased product demands, the balancing act of inventory management can take some hard-lines that require fast funding. Inventory based loans are ideal in such situations due to the ability to play specific to the need and offer quick turnaround when time is of the essence.

Equipment: The foundation of many businesses rests heavily on reliable equipment. Dated or underperforming machinery/technology can slow production and business operations to a dismal point. Whether leased or purchased, new equipment can structure your business for the long game and handle the strain to match demand. Equipment loans assist owners with quick equipment necessities while typically paying for itself over the course of its lifetime.

Expansion: Franchise owners hold high expectations for their particular business and brand. If all goes according to plan, expansion of their venture is a part of the overall vision. When the time is right, it can be in the best interest of the business to consider an expansion loan to save upfront capital and allow operations to pay it off over time.

Regardless of the size of your franchise operation, custom small business financing is typically quicker and more attainable than traditional lending solutions. Be sure to thoroughly consider the best financial partner for your business and start building a strong, working relationship.

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