A new advertising campaign by the International Franchise Association highlights one of the many economic benefits of franchising: job creation. The IFA's Public Awareness Campaign is dedicated to touting the economic impact of franchising and educate lawmakers and the general public regarding the economic outlook for franchise businesses, as opposed to non-franchised businesses. The IFA reports that in 2011, franchises are well-positioned for stronger growth and a faster rebound. The primary factors in restraining growth in franchising are tight credit and continued uncertainty about healthcare costs in the wake of the Patient Protection and Affordable Care Act of 2010 ("Obamacare").
Great examples of the economic impact of franchising on communities are easy to find. For example, a recent article in the Las Vegas Business Press tells the story of Scott Santy, a licensed securities broker who lost his job with a financial investment company as a result of the recession. Mr. Santy moved to Las Vegas in 2009 to start a Flip Flop Shops franchise at Mandalay Bay. Mr. Santy is one of franchising's many success stories — his business is booming and his revenues are high.
Stories like Mr. Santy's are common in the franchise industry. Legislators need to pay attention to these stories and understand the importance of pro-small business policies that can help entrepreneurs grow. Although positive steps have been made towards making credit more available, it is still difficult for many individuals to find access to the capital they need to start or grow their businesses.
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