Four years of depressed consumer spending have taken a toll on franchisees, who are less optimistic about sales heading into 2012 than they were one year ago. That’s according to a survey released today from the International Franchise Association Education Foundation.
In addition to concern about spending, lack of access to credit, combined with “negative rhetoric coming out of Washington,” are two factors stymieing growth, says respondents to the survey, which was conducted by HIS Global Insight for the IFA.
While 66.6 percent of franchisees said they expect to see moderate to significant increase in sales in 2012, that number is down from 76.4 percent in 2010. Concerns about tax reform and health care are other factors contributing to franchisees’ pessimistic outlook.
Even with the muted outlook, IFA president & CEO Steve Caldeira said that franchises’ expected growth is “outpacing projected growth in the overall economy, “ and projects the number of franchise jobs to grow 2.1 percent in 2012.