IFA Statement on the February Jobs Report
WASHINGTON, March 8—International Franchise Association President and CEO Steve Caldeira issued the following statement today following the release of the February jobs report that the U.S. economy added 236,000 jobs in February as the unemployment rate fell to 7.7 percent.
“Franchises are forecast to add 162,000 new jobs across all business sectors in 2013. As access to capital slowly but steadily improves, pent-up demand for growth by franchisors who held back during the recession is now being realized on a more consistent basis. More than 10,200 new franchises are forecast to open in all sectors of the industry, led by restaurants, hotels, business and personal services, commercial and residential services and real estate.
“While the drop in the unemployment rate is welcome news, we remain concerned about the continued discussion of raising taxes on small business owners and investors whose rates just increased as a result of the fiscal cliff agreement. In addition, the continued impact of the Affordable Care Act on job creation, which will put 3.2 million full-time jobs at risk in the franchise industry, while adding more than $6.4 billion in increased costs to franchise businesses, not including regulatory compliance will add additional burdens.
“Passing revenue-neutral comprehensive tax reform that simplifies the tax code and makes it simpler and fairer for individuals and businesses will go a long way toward further improving the business environment for franchising on a long-term basis.”
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.