Georgia franchising booms — each new business means an average of 10 jobs
While virtually every sector of the economy remains stagnant in the recession, the franchised business sector in Georgia is growing with the Small Business Development Center and FranNet’s help — and those new businesses are creating much-needed jobs.
The Georgia Small Business Development Center has joined forces with FranNet’s Leslie Kuban to offer a two-year series of free workshops for anyone thinking of opening a business. The workshops offer valuable advice and technical consulting on what businesses are doing well and how to get started. The series is funded by the Jobs Act of 2010.
The International Franchise Association projects 1,900 new U.S. franchise businesses for 2011, creating 194,000 jobs and adding $33 billion more to the U.S. economy. The average new franchise business creates 10 jobs, according to FRANdata, an independent organization that analyzes the franchising sector.
The overall economic impact of new franchised businesses opening in 2011 is big, but on a local level, the impact is huge. Fifty new franchises in greater Atlanta would create about 500 new jobs, giving our neighbors, friends and former coworkers new hope and a fresh start. In hard-hit areas such as Macon, 10 franchises would mean 100 jobs and a lot to a community struggling with high unemployment.
Each new franchise boosts its local economy. A business service franchise, for example, creates an average of seven jobs; commercial and residential service franchises create an average of six, according to FRANdata.
For downsized corporate workers or those executives who want more control over their work and personal lives, franchising is a realistic option. Franchising works because, with franchisor support and tested systems, it’s “a proven model with the quickest path to creating a successful business and accelerating job growth,” says IFA spokesman Matthew Heller.
After the 2001-05 recession, for example, jobs in franchised businesses grew 40 percent compared to 26 percent in other sectors, Heller said: “Clearly, franchising is the key to job creation.”
Business is brisk at FranNet of Georgia. FranNet is a North American network of franchise consultants that helps corporate workers and executives transition to business ownership.
“We at FranNet expect to help establish at least 20 percent more franchised businesses this year than in 2010, and our Georgia offices are seeing even greater growth,” said Jania Bailey, COO of FranNet. ”The overall U.S. franchise industry growth rate, according to the IFA, is expected to reach 2.5 percent in 2011.”
The U.S. franchise industry is doing well, but FranNet is doing even better. Already this year, consultants with FranNet of Georgia have helped place people in specialty clothing, painting, residential cleaning, child education and commercial kitchen exhaust cleaning franchises.
These success stories come at a crucial time for Georgia. Statewide unemployment in August 2011, 10.2 percent, reached its highest level in six months. Throughout the recession and a tepid recovery, Georgia has lagged, posting a higher unemployment rate than the national average and creating fewer jobs. In some spots, such as Macon County, unemployment is about 15 percent.
The next seminar is Thursday, November 10, 2011 (10am-12pm) at Kennesaw State University SBDC. RSVP to 770-423-6450 or visit the link below.
For additional information, contact and visit http://www.georgiasbdc.org/subpage.aspx?page_name=description&product=110653&referrer=view_classes&city=Kennesaw
Franchising can help close the gap – one new Georgia business at a time.