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What's Ahead for Franchising in 2013? Slow and Steady Toward Recovery

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Entrepreneur.com -Tracy Stapp

The overall attitude of the franchise world for 2013 is "cautious and optimism." On a positive note, however, According to IFA's Annual Franchise Business Economic Outlook report, 2012 saw more growth in franchise establishments since 2008. But, industry leaders are frustrated, they believe growth rates could be larger if franchisors and franchisees weren't bogged down by numerous uncertainties regarding public policy and the pace of the economic recovery.

Healthcare seems to be the biggest concern among franchisees. The Affordable Care Act worries many due to the uncertainties of how it will affect their business long term. Taxes are another major concern. Many say that failure by Congress to extend Bush-era tax rates at every level would negatively impact their hiring and growth plans.

Despite these challenges, modest growth is still expected for 2013 in the areas of employment, output and gross domestic product for franchised businesses.

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