ABSTRACT
Franchising continues to be a strong and signifi cant contributor to the American economy. As per the Franchise Business Economic Outlook, a report commissioned by the International Franchise Association (2012), most economic reports point to continued growth, albeit at a moderate pace. The credit available to small business owners due to economic conditions was one of the problems. The franchise association expected franchise establishments in the United States to increase by 1.5% in 2012. It was expected that employment in franchise establishments to increase. Quick service restaurants (QSR), the largest franchise business line, were expected to rank third in the growth of new establishment. The anticipated economic climate, even with sluggishly economic improvement,
was expected to draw current customers to more upscale/expensive restaurants. This may change with current economic conditions. Following an increase of 4.9% in 2011, the expected sales at quick service restaurants was predicted to advance by 4.1% in 2012. Revised Census Bureau data show that full service restaurant sales expanded by 8.0% in 2011 up from 2.3% in 2010. The number of franchised quick service restaurants in the United States was forecasted to be 150,860. The franchise establishment distribution is shown in Figure 2.1. As represented in the fi gure, quick service restaurants represent 20% of all establishments and account for the highest percentage among all franchise establishments. The employment distribution by sector is shown in Figure 2.2. As seen in the fi gure quick service restaurant and table/full service restaurants account for the highest percentage of employment distribution among all franchise establishments. Franchise restaurants fall under the category of business format franchising because product, service, and trademark-the entire concept-are included in franchising. Restaurant franchising continues to offer opportunities for those seeking to own a business, both in the United States and abroad.
