10 Percent Of All New Jobs Were Created By Franchises Over Past Year




Yesterday, ADP, in collaboration with Moody’s, released its inaugural National Franchise Report (NFR), a new barometer of the health and growth of the increasingly important franchise industry, measuring the amount of franchise jobs created on a monthly basis. The NFR showed that 19,160 private sector jobs were created in May and approximately 150,000 jobs were created over the past year, accounting for about 10 percent of all new jobs.


Below are a few highlights from the event.  Audio is available HERE and you can review the ADP press release and supporting materials HERE.

National Franchise Jobs Report Highlights

According to Moody’s Chief Economist Mark Zandi, The Franchise Industry Is Responsible For 8 Million Jobs, Equivalent To The Financial Services Industry.  “The franchise industry is a large industry, it’s a big part of the job base.  By our calculation, based on the ADP data, it’s a little over 8 million jobs.  That’s about six percent of the payroll job base…That’s about the size of the financial services industry so it’s not inconsequential… So this is a large industry, quite significant.”  (Mark Zandi, Remarks At ADP NFR Launch, New York, 6/20/13)

Franchise Employment Has Been Growing Nearly Twice As Fast As the Rest Of the Economy And Accounts For 10 Percent Of All New Jobs Over The Past Year, Says Zandi. “Franchise employment has been growing almost double the rate of employment more broadly… So it’s been important to the economic recovery, particularly more recently. So franchise employment is six percent of the job base, it’s about 10 percent of job growth over the past year so it’s providing more than its fair share…” (Mark Zandi, Remarks At ADP NFR Launch, New York, 6/20/13)

NFR graphic

ADP’s NFR Recognizes The Economic Power Of The Franchising Industry According To Steve Romaniello. “With the launch of ADP National Franchise Report today, ADP is showing they clearly recognize the power of franchising to the economy and the importance of promoting this very critical growth economic engine.” (Steve Romaniello, Remarks At ADP NFR Launch, New York, 6/20/13)

Zandi Points Out Key To Franchise Growth Is The Housing Recovery. “A lot of what’s driving the growth is the turnaround in the housing market and real estate more broadly. In the business service category, you do have franchises that are related to building management and providing services to the care of commercial properties and they’re doing relatively well…So the turn in housing has been obviously important to the economic recovery and the franchise industry.” (Mark Zandi, Remarks At ADP NFR Launch, New York, 6/20/13)

Zandi Also Highlights That Franchises Are In All Industries. For Example, They Account For Two-Thirds Of All Auto Dealer Jobs. “Franchises are important to lots of different industries…Franchises account for about two-thirds of all jobs in the auto dealer industry. Restaurants are a big part of the story. About 40 percent of employment in the restaurant industry are in franchises… As you go down the list, you can see it is very, very important to a significant number of industries.” (Mark Zandi, Remarks At ADP NFR Launch, New York, 6/20/13)

Unlike Many Industries, Franchises Are Coast-To-Coast, In Every Community Across The Country According To Zandi. “It’s important to every part of the country, coast-to-coast. If you look at some industries, they are very heavily regionally focused…In the case of franchise employment, it’s everywhere, in every community across the country so it’s important in that regard as well.” (Mark Zandi, Remarks At ADP NFR Launch, New York, 6/20/13)


Romaniello Stated ADP’s Report Complements IFA Studies Which Show Franchises Produce $2.1 Trillion In Economic Output. “This new report will complement our own studies and analysis, which show that the franchise industry includes over 825,000 establishments generating $2.1 trillion in economic output. This significant economic contribution helps us make the case to policymakers that public policy should help, not hinder, franchise businesses, so that they industry can continue to grow, prosper and create millions of jobs across the country.” (Steve Romaniello, Remarks At ADP NFR Launch, New York, 6/20/13)

  • The Most Recent Franchise Business Outlook Forecasts Franchise Job Growth To Be 2 Percent Compared To 1.5% Of Total Job Growth. “We also expect a 1.5 percent increase in the number of franchise businesses in 2013. This will continue to outpace the growth of overall business formation across the economy. We project 1.2 percent growth for total (non-franchise as well as franchise) establishments in the 10 business lines where we track franchise performance. We expect employment in franchise establishments to increase 2.0 percent in 2013, following a 2.2 percent gain in 2012.” (“Franchise Business Economic Outlook,” IHS Global, 5/13)

Sample News Coverage

Zandi Says Franchise Industry Is A “Big Industry” With Eight Million Jobs. “You mentioned the franchise report. This is interesting, because there is no other data that covers that industry and it is a big industry. It’s about eight million jobs and about 6% of the jobs base so it’s not inconsequential.” (Mark Zandi, Fox Business News, 6/20/13)

The Franchise Industry Is The “Job-Generating Gorilla In The Room.” “The franchise industry just might be the job-generating gorilla in the room. The number of franchise jobs in the U.S. grew at an annual rate of 2 percent in the last year through May, approximately twice that of overall job market, says Mark Zandi, chief economist at market-research firm Moody’s Analytics. Franchises overall provide 8 million jobs, or six percent of the job base in the U.S., according to Zandi, who spoke at the Franchise Expo in New York City this morning.” (Catherine Clifford, “Report: Franchise Jobs Grow At Twice The U.S. Rate,” Entrepreneur, 6/20/13)

Is Obamacare Leading To More Jobs In Franchises?That may sound counterintuitive to those who predict that the health reform bill will curtail growth because companies will seek to keep staff sizes below 50 full-time workers to avoid having to offer health coverage or pay penalties. But the ACA also lets businesses off the hook from having to provide insurance if their average employee works less than 30 hours a week.” (Patrick Clark, “Restaurant Franchises Are Hiring. Are They Dodging Obamacare?,” Bloomberg, 6/20/13)

Restaurants Drove New Job Creation In May Amongst Franchises. “Restaurant franchises added nearly 14,000 jobs during May, payroll provider ADP and Moody’s Analytics said in their first report on employment at franchise companies. The gain was by far the largest for any of the 16 segments that the report tracked. Second was business service franchises, which includes consumer-related franchises such as travel agents. They added 2,530 jobs, followed by food retailers with 1,080.” (“Restaurants Lead Hiring At Franchise Firms In May, AP, 6/20/13)


Top 5 franchises hiring




In advance of the International Franchise Expo this weekend at the Jacob Javits Center, Fox and Friends spent some time with different franchise concepts that are hiring and continuing to add jobs to the economy.

The franchise industry is expected to outpace other sectors of the economy despite the sluggish recovery, and thousands of different brands will be showcasing their businesses during the Expo in New York City. From Let’s Yo! Yogurt, which is expected to easily add over 500 jobs this year, to Batteries Plus Bulbs which is expected to grow one store a week adding 250 jobs alone over the summer, and Jake’s Way Back burger adding 800 new jobs and 40 franchise locations opening in 2014, small businesses like these franchise businesses is where job creation comes from in this country.

The International Franchise Expo, sponsored by MFV, will feature entrepreneurs and business owners at the largest expo in the country.  As many as 20,000 attendees visit the expo from more than 90 countries. These visitors will interact with more than 400 franchise brands from 60 business categories, making the IFE the top destination for attendees seeking a new franchise opportunity. For more information and to register please click here.

To view the full interview on Fox and Friends please click here.

CEO of Choice Hotels International delivers key messages on ACA impact



With 83 percent of the public planning to take at least one summer trip this year, CEO of Choice Hotels International Steve Joyce appeared on CNBC to discuss what hotels are anticipating out of this summer season and what remains the biggest concerns for franchisees.

“Even though people are growing more confident about their jobs and planning to take vacations, most of the public remains cautionary about where the economy is going,” explains Joyce.  As the impact of the health care bill is significant to all employers, Joyce states that his franchisees remain worried about taxation, health care and a positive immigration outcome.  “They want to make sure the government is helping them create jobs and not preventing them from doing so,” Joyce explains.

Click here to view the full interview.

How You Can Help Oklahoma

As we continue to learn more about the impact the tornadoes in Oklahoma have had on families, homes and businesses, there are many ways the franchise industry can offer support to those most affected.  The American Red Cross is already on the ground providing shelter and hot meals to those in Moore, Oklahoma and surrounding areas and there are various outlets for people to give their time or contribute to the recovery process that is already taking place.

 How to help the community:

  • Red Cross of Central Oklahoma is asking people to donate by texting REDCROSS to 90999 to give a $10 dollar donation that will automatically be applied to your next phone bill.  The donation will go to those directly affected by the storms.
  • The Salvation Army Arkansas-Oklahoma Division has dispatched disaster response teams throughout the area and donations can be made through the following ways.
    • The Salvation Army Disaster Relief, P.O. Box 12600, Oklahoma City, OK 73157. Designate Oklahoma Tornado Relief on all checks.
    • Donate by phone:  (800) 725-2769
    • Donate online: donate.salvationarmyusa.org/uss/eds/aok

Express Employment Professionals has created The Expressions of Hope Relief Program, which is managed by the Communities Foundation of Oklahoma, to provide financial assistance to Express employees in times of need or emergencies like this.  If you would like to donate to the Expressions of Hope Relief Program, please see below for one of two ways:

    • Mail Checks
      Payable to: Communities Foundation of Oklahoma
      2932 NW 122nd Street Suite D
      Oklahoma City, OK 73120
      (877) 689-7726
      In the memo line include: Expressions of Hope
    • Donate Online
      You can donate to the fund online by visiting https://www.cfok.org/donate/. From the drop down menu, be sure to select the “Expressions of Hope Relief Program Fund” for the fund name.

If there is anything IFA can do for all affected by the storms, please let us know as we continue to keep everyone in Oklahoma in our hearts.


On Memorial Day, Wounded Warrior Shilo Harris, moving on with his life successfully through franchising





Retired Staff Sergeant Shilo Harris is no stranger to the IFA, having spoken at IFA’s Public Affairs Conference in 2011 and featured as a personality at the 2012 IFA Convention. He’s a Wounded Warrior, veteran of the U.S. Army, motivational speaker and now, WIN Home Inspection’s newest Strategic-Partner. Working alongside his son and wife in San Antonio, Harris has embarked on his recent role as a franchise business owner and has not looked back.

While serving in Iraq in 2007, his patrol vehicle was struck by an improvised explosive device (I.E.D). Harris was in a coma for 48 days, had third-degree burns on 35% of his body, lost his ears, the tip of his nose and three fingers, and has since undergone roughly 50 surgeries. Harris recognizes that everything that happened while serving has helped him to become who he is today.

As a 2012 recipient of WIN’s “WIN for America” program, Harris’ franchise fee was waived as WIN worked hand in hand to ensure the success of Harris in terms of securing financing and facilitating training. WIN committed $1.2 million dollars to honor veterans through the “WIN for America” program and are honored to add Harris to their roster, in which 25% of the company is comprised of veterans.

“At WIN, we believe in leveraging the training and skills veterans are taught in combat, to achieve civilian world accomplishments,” says Steve Wadlington, President of WIN Home Inspection. “Shilo regards core values, commitment, and teamwork, thus making him ideally positioned for success within our system.”

Harris is quick to say that family comes first and is thrilled to be in business with his son as his partner, and his wife as his marketing hand. “Through WIN, I’m able to provide for my family, alongside my family,” says Harris. “I’ve been given an opportunity to move forward in life and while my new role as business owner is the next step in my journey, I will never stop advocating for other veterans and Wounded Warriors to let them know there are options beyond service and combat.”

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