SOUTHFIELD, Mich. – March 7, 2013 – Plante Moran, one of the nation’s largest certified public accounting and business advisory firms, today announced the release of its 2013 outlook for the franchising sector. The Plante Moran Franchising Outlook assesses the current role of franchising in the economy, and opportunities and challenges for franchisors this year.
“Our 2013 outlook offers perspective on the positive traits of franchising systems and how the sector is well positioned for growth despite the uncertainty of today’s corporate world,” said Mark Fleischer, partner and franchising group leader at Plante Moran. “While we predict the 2013 economy to remain sluggish, the information we provide around key events and how to navigate them will better enable our franchising clients to succeed.”
According to a 2012 survey conducted by International Franchise Association (IFA), eight out of 10 franchisors predict expansion in 2013. In support of this goal, the 2013 Plante Moran Franchising Outlook helps reaffirm franchising is a business model that works despite the uncertain economic environment. Additional policies and business models uncovered in Plante Moran’s report that can lead to success for 2013 are as follows:
- Stay true to the needs of your customers by offering services and products for specific demographics
- Plan now for the impact of the Affordable Care Act (ACA) and its healthcare requirements for individual franchisees once the “pay for play” mandate is enforced
- Search for alternatives to traditional financing apart from banks such as a Small Business Loan (SBA) or an online match-making site that pairs borrowers with lenders
Entrepreneur Magazine has published a “Franchise 500” list for more than 30 years. Companies on the list added 19,197 franchise units between 2011 and 2012, almost doubling the previous year’s growth. Entrepreneur and the IFA also report anticipated revenue growth in franchising for 2012 at 4.9 to 5.2 percent, which is:
- On par with the middle market, according to data from the National Center for the Middle Market
- Impressive when compared to the forecasted 3.5 percent rate of growth for the S&P 500, according to Bloomberg
In addition to Plante Moran’s perspective, the report includes contributions from additional industry experts, including the National Center for the Middle Market, University of Michigan Professor Francine Lafontaine, and Melanie Bergeron, an officer of the IFA and Two Men and a Truck board chair. To access the full Plante Moran 2013 Franchising Outlook, please visit http://www.plantemoran.com/perspectives/outlooks/Documents/franchising-outlook.pdf
About Plante Moran
Plante Moran is among the nation’s largest certified public accounting and business advisory firms, providing clients with tax, audit, risk management, financial, technology, business consulting and wealth management services. Plante Moran has a staff of more than 2,000 professionals in 21 offices throughout Michigan, Ohio and Illinois, with international offices in Shanghai, China; Monterrey, Mexico; and Mumbai, India.