The Franchisee Outlook For 2013

Growing Money
Reading Time: 2 minutes

You’re likely psyched for new for franchise opportunities in 2013. Growing your business is always a priority, and 2013 is a fresh new year. Perhaps you’ve seen the steadily declining growth forecast for franchising locations—about 1.6 percent, last I checked—and decided 2012 isn’t the year for you. Direct Capital understands.

Sorting out the uncertainty heading into 2013 is tricky, it’s true. But we can look at the current economic indicators and figure out where franchises would be in a vacuum, barring any epic economic collapses, huge boosts in economic activity or the sudden ascension of space aliens with huge quantities of gold who desire nothing more than our earthling McDonald’s cheeseburgers. If you take a look at what may be ahead through that prism, it looks pretty good.

Let’s start with the most positive points. Franchises are only projected to grow about 1.6% the rest of the way in terms of locations, yes, but their overall sales volume could be up about 5%. That’s a huge number, and it makes you question why it’s always the locations that come first in these studies. Add in roughly 2% growth in employment and you’ve got a year that should finish pretty strongly.

While our various candidates for national office debate the economy, it’s pretty clear that America is in a better place going into 2013 than they were going into 2012, and so on back through the last couple of years. Given that franchises weather poor economies relatively well to begin with, we shouldn’t necessarily expect huge growth. But all indicators point to continued growth in 2013.

With lending volume in America growing at very nearly a parallel rate, 2013 is shaping up to be a good year to get that major project done or expand your location. Forget the Mayans, in other words.

We hope you’ll join us for the Restaurant Finance & Development Conference in Las Vegas next month to learn more about where the industry is heading and hear a little bit more about how Direct Capital plans to help out franchisees heading into 2013.


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