For immediate release
Contact:
Alisa Harrison, 202-628-8000
Matthew Haller, 202-662-0770
aharrison@franchise.org
mhaller@franchise.org
twitter.com/franchising411 

WASHINGTON, Jan. 27-The International Franchise Association today welcomed the report by the U.S. Department of Commerce that economic output and consumer spending grew in the fourth quarter of 2011, saying continued growth combined with pro-growth policies will be key to the franchise industry creating new jobs in 2012.

"Given many franchise businesses are in the restaurant, retail, tourism and personal services categories which rely heavily on consumer spending, today's positive report is welcome news that supports IFA's forecast for modest job growth in 2012," said IFA President & CEO Steve Caldeira. "While still grappling with tight credit markets and uncertainty around tax rates and regulations stemming from the health care law and recent labor rulings, franchise business owners would feel more optimistic about hiring decisions if lawmakers addressed pro-growth policies that provide certainty on tax rates and boost small business lending. "

The Franchise Business Economic Outlook: 2012 report, prepared in December 2011 by IHS Global Insight, forecasts modest growth in the number of franchise establishments, employment, output and contributions to U.S. gross domestic product (GDP). The report was based on estimated consumer spending growth at 2.2 percent and real GDP growth at 1.8 percent in 2012. Key findings from the forecast showed franchise businesses are projected to grow 2.1 percent in direct jobs, adding 168,000, from 7,934,000 jobs to 8,102,000. The forecast projects the industry will add nearly 14,000 establishments for 1.9% growth, from 735,000 units to nearly 750,000 units.

In a letter to President Obama and Congress on Jan. 23, IFA outlined its policy platform for 2012. In the letter, Caldeira said franchise businesses could grow significantly faster, creating even more new jobs, in 2012 and beyond if policies addressing access to capital, comprehensive tax reform, work force policy and labor regulations, health care, state tax nexus challenges and enhanced opportunities for veterans were implemented. To view a copy of the letter, please click here.

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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.