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Franchises Provide Big Boost to Nation’s EconomyFranchised businesses generate jobs for more than 18 million Americans and account for 9.5 percent of the private-sector economic output, a study released by International Franchise Association Educational Foundation reported. Conducted by PricewaterhouseCoopers, "The Economic Impact of Franchised Businesses" found that more than 760,000 franchised businesses generate a total economic output of more than $1.53 trillion, or nearly 10 percent of the U.S. private-sector economy.
Franchises, which include such businesses as quick-service restaurants and real-estate agencies, auto repair shops and hotels, directly employ 9,797,000 people, about the same number as the U.S. durable-goods manufacturing sector. Franchising employment is almost as large as that of the information and construction sectors combined. Combining both direct and indirect job activity, franchising generates one out of every seven jobs in the private sector.
" While the number of businesses that use franchising as a method of distributing their products and services has steadily increased since the 1950s, there has been very little broad-scale economic research about this phenomenon," said Dick Rennick, foundation chairman and CEO of American Leak Detection, Inc.
The study measured the direct and indirect impact of franchised businesses, focusing on the number of jobs, payroll and output they generate. Total economic impact, the effect of what occurs both in and because of franchised businesses, results in more than 18 million jobs or nearly 14 percent of the nation's private-sector employment. The businesses provided $506 billion, or more than 11 percent of the U.S. private-sector payroll, and stimulated an overall economic output of $1.53 trillion, nearly 10 percent of the private-sector economy.
The study describes the impact on the U.S. economy for two types of franchises: business-format and product-distribution. Business-format franchises operate in more than 75 industries such as restaurants, hotels, auto services, convenience stores and tax-preparation services. Examples of product-distribution franchises are gas stations, auto and truck dealers, and beverage bottlers and distributors.
Business-format franchises accounted for 622,272 establishments, 7,787,454 jobs and $162.9 billion payroll resulting in $460 billion of economic output. Business-format franchising employed about as many people in 2001 as the financial services industry. Product distribution franchising operated in 145,211 establishments providing 2,009,663 jobs and $66.2 billion in payroll producing $164.6 billion of economic output.
The study also found that franchised businesses play a significant role in every state and the District of Columbia. They account for at least 10 percent of the private-sector economic output of 20 states. The value of output produced because of franchised businesses was greatest in California ($187 billion), Texas ($121 billion), Florida ($105 billion), Illinois ($79 billion), and New York ($72 billion).
Jobs created because of franchised businesses were at least 10 percent of the private-sector workforce in all but four states and the District of Columbia. The number of jobs created because of franchised businesses was greatest in five states: California (1,914,065), Texas (1,387,826), Florida (1,256,489), Illinois (853,517), and Ohio (782,061).
Considered relative to the size of a state's economy, franchising had the greatest impact on jobs in Nevada, accounting for 20 percent of its private-sector workforce. Franchising was also a major job provider in Arizona, Florida, Mississippi, New Mexico, Oklahoma and Tennessee.
The study was conducted in 2003 drawing on a number of databases that reflect economic activity that occurred in 2001. Because there is no single source of data about franchised businesses in the United States that could provide all of the statistics needed for the study, PricewaterhouseCoopers used three databases that contain different types of economic information: "County Business Patterns" and "Nonemployer Statistics," produced by the Bureau of the Census, and "IMPLAN," by the Minnesota IMPLAN Group. These databases were melded with two other sources, Dun & Bradstreet's " MarketPlace," and a survey of franchisors conducted by the foundation.
New Brand Identity for More Space Place®
More Space Place®, the nation’s largest wall bed retailer, unveiled a new brand identity for its space-saving furniture stores located across the country. A new logo is the center of an exciting marketing program that includes everything from new advertising pieces and in-store signage to new store layouts and design specifications.Like More Space Place’s unique concept, the new identity is designed to illustrate organization and neatness. The strategy is to convey the perception that, with the help of More Space Place, a neat and comfortable home can be easily achieved. The franchise’s modern look and new tag line "America’s Murphy Bed Store" further positions the company as the nation’s leading retailer of Murphy Beds.
"More Space Place is a terrific concept and has an exceptional core group of franchise owners," said Marty Juarez, vice president of franchising for More Space Place. "Now, as we expand throughout the United States, we have a strong image to build our brand upon. We knew we hit a home run when long-time existing franchise owners quickly volunteered to update their stores with the new image."
The More Space Place logo is a black and white linear representation of the words "More Space Place" expanding beyond a series of red squares grouped into an angular rectangle. The graphic element embodies organization and design for easier brand recognition. More Space Place’s marketing strategy also includes print advertising that combines lifestyle photography, relaxed people enjoying comfortable-living with elegant and creative furniture solutions.
The franchise is also in the process of developing TV, outdoor and radio advertisements."I am updating my stores with the new image specifications," said Joe Baggiano, franchise owner of the Sarasota, Fla. locations. "This is a good step towards building not only our national image, but also a local brand, making it easier to differentiate my showrooms from some smaller local competitors."
More Space Place is the nation’s largest retailer of wall beds with 25 operating retail locations in Florida, Michigan, New Hampshire, North Carolina and South Carolina. With another six stores under contract in brand new market areas, the company will grow at least 25 percent this year. More Space Place stores sell an entire collection of space-saving furniture including their premier products designed around the Murphy bed concept, entertainment centers, home office work-stations and custom systems for the closet, pantry and garage.
Founded in 1989, More Space Place is headquartered in Largo, Florida. To inquire about franchise information and opportunities visit www.morespaceplace.com.
Franchisee, Central Florida Region
"I've worked with people throughout my professional career. Early on I started teaching, and learned that teaching is much more than just controlling a group of people. From there I free-lanced for a period of time as a residential interior designer, finding those teaching skills even more important! In the recent past, I've worked for a large corporation utilizing all the skills I'd accumulated along the way, plus new ones in the position of a marketing representative.
When I first discovered the More Space Place organization, I was impressed with not only the product they produce, but the caliber of the people who ran the corporation, and the individuals who owned the stores. I was so impressed with the ENTIRE package, I decided that it was something I wanted to be a part of. What I've found is a corporation that truly cares about the individual store owners, the product they produce, and I couldn't be more thrilled to be a part of what they do.
After attending the annual owner's meeting, I was totally convinced that I'd made the right decision. What I found was a group of individuals who eagerly share their ideas, and wisdom, and will be there as a support for one another. The franchise corporate team is continually working to improve not only the product, but the marketing, and distribution of the product. Being a part of this meeting was invaluable to be able to grasp the whole picture, and what I'd chosen as my life career path.
Every individual at the corporate headquarters has always made themselves accessible, and what I've found is continual support and encouragement from all of them. I can't imagine a better franchise to be a part of and am proud to say I'm a member of this dynamic group!!!"
- Franchisee, Central Florida Region
Franchisee, Central Florida Region
I have now been in the More Space Place franchise system for a little over 2 years and I LOVE IT! After a long search, I have finally found not only work that I enjoy doing, I am the Owner of the business - I love owning my own business!
I am a female sole proprietor, and I could not have done it without the help and support of the More Space Place corporate staff. Even more exciting is that as the franchise is growing Nationwide, their services and systems are getting even better. I am excited about our future together! The future is so encouraging for my business, I am considering making my son a partner so that we can open more stores and carry this venture into the next generation!
- Franchisee, Central Florida Region