By: Catherine Clifford
March 27, 2013
Thinking of buying a franchise this year? If so, you will have company. Nearly 11,000 new franchise units are expected to open doors in 2013 in the U.S., according the International Franchise Association.
The number of franchise businesses in the U.S. is expected to grow this year to 757,438 from 747,359, an increase of 1.3 percent, according to the IFA’s first quarter update to its economic outlook, released Wednesday. The IFA, a Washington D.C.-based advocacy organization, commissioned economic analysis company IHS Global Insight, to prepare the report. Franchise businesses are expected to employ 8.3 million people in the U.S. by the end of this year and generate $802 billion in revenue, the report says.
Franchises in the business, commercial and residential service industry are expected to grow the most quickly both in the number of employees and the number of establishments, according to the report. As far as sales, real-estate franchises are expected to see faster growth than any other franchise sector this year, IFA reports. By dollar volume, the quick-service restaurant category with more than $200 billion in revenue expected in 2013.