FOR IMMEDIATE RELEASE
Matthew Haller, 202-662-0770
Jenna Weisbord, 202-662-0766
Survey: Franchise Business Owners Say They Are Unlikely to Grow by Nearly 3 to 1 Margin Following Elections
WASHINGTON, Nov. 9—Franchise business owners say they are less likely to expand following the Nov. 6th elections, according to a survey of franchisors, franchisees and industry suppliers. The survey, held during a Nov. 7 telephone town hall meeting of nearly 1,800 IFA members, reaffirms that new franchise business formation for 2012 is down from previous forecasts and job creation remains flat amid uncertainty about the impending fiscal cliff and anticipated higher taxes, according to a third quarter update of IFA’s 2012 economic forecast.
“While the results of the elections were status quo, the current status quo for small businesses is clearly not conducive to sustaining a meaningful economic recovery,” said IFA President & CEO Steve Caldeira. “The President and bipartisan members of Congress should immediately pass a short term deal that averts the fiscal cliff at the end of the year and work together to address long-term fundamental fiscal reform, including comprehensive tax reform, reforming entitlement programs and reducing the unsustainable debt.”
According to the survey, 58 percent of the 160 respondents say they are less likely to grow following the elections; 24 percent report the elections have no change in their plans for growth, while 18 percent say the results of the elections will make them more likely to grow.
The franchise industry accounts for 825,000 establishments, nearly 18 million workers and generates 2.1 trillion in economic output. IFA continues to support pro-growth policies, such as comprehensive tax reform that lowers both corporate and individual rates, to improve the economic environment for franchise businesses.
About the International Franchise Association
The International Franchise Association is the world's oldest and largest organization representing franchising worldwide. Celebrating over 50 years of excellence, education and advocacy, IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising. Through its media awareness campaign highlighting the theme, Franchising: Building Local Businesses, One Opportunity at a Time, IFA promotes the economic impact of the more than 825,000 franchise establishments, which support nearly 18 million jobs and $2.1 trillion of economic output for the U.S. economy. IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development.
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