I was fortunate to attend the International Franchise Association’s Public Affairs Conference this week in Washington D.C., and the common theme throughout the conference was the fact that franchising is a great way to support President Obama’s latest push for job creation, yet the capital markets are extremely tight for small businesses.
I thought I’d do my part in promoting the franchise sector through this post. Franchising accounts for:
• 825,000 companies
• More than 18 million jobs
• $2.1 trillion to the U.S. economy
Due to the limited access to capital, many franchisors that would like to expand their business.
Gordon Logan, President and CEO of SportClips, a franchise with 810 establishments in 38 states, cites Regulatory uncertainty as his primary challenge in selling franchises to aspiring small business owners, which is holding back the creation of jobs for his franchise system, and equally important, economic output for the country that it so urgently needs.”
"As a young system that is growing at over 100 locations each year, our system has a great need for growth capital," said Logan. "Delays and regulatory uncertainties regarding financing have cost us 50-100 locations that could have been opened and which would have provided jobs the past three years if we had better access to credit and more certainty in the SBA program."
To learn how you can get more involved with franchising advocacy relations, explore the IFA. Job creation is certainly very important to our economy right now and we should all do what we can to help out.