Investing in a franchise opportunity can not only lead to a successful career, but it can also help play a significant role in supporting your local economy. Although franchisees follow an established business model, many franchise owners foster the spirit of entrepreneurship as they lead a business and a team of employees in their community, and since many franchise owners typically live and work in the area, they contribute to the local economy.
Franchising is expected to contribute approximately $860 billion to the U.S. economy in 2023, a 4.2% increase from 2022, comprising almost 3% of the Gross Domestic Product. Here we dive into just how franchising’s continued success can help support the nation’s economy and make an impact locally.
According to the International Franchise Association’s 2023 Franchising Economic Outlook, despite economic fluctuations, franchising continues to create job opportunities for individuals of all educational backgrounds and economic levels. It’s projected that franchising will add approximately 254,000 jobs in the U.S. this year, with a total number of workers employed by a franchised business estimated to reach 8.7 million.
In most cases, franchises require multiple employees to operate successfully. By investing in a franchise, you not only help create local job opportunities but also contribute to lowering the unemployment rate in your community. Your employees likely live in the area, which means you can help boost your local economy and provide steady income to community members, further improving its overall financial stability.
LOCAL SUPPORT & COLLABORATION
Depending on the franchise system, most franchisees can collaborate with businesses and organizations within their local community. For example, a franchise owner could sponsor a local sports team or event, team up with a charity to support a cause, collaborate with small businesses for a joint promotion, build strong community relationships with a Chamber of Commerce or local associations, and so on.
Additionally, some franchise businesses seek local vendors and suppliers when possible. This creates another opportunity to support nearby businesses and contribute to the local economy, helping vendors and suppliers in their community grow.
Having these collaboration opportunities can help franchisees give back to their community and result in more engagement from local consumers. When franchisees and local businesses support each other, more money is spent within the community, helping to boost the local economy and promote growth. Consumers increasingly want to support local businesses, with 82% of Americans believing small businesses positively impact people’s lives. Local support can help build trust with consumers, establish long-term customer relationships, demonstrate a strong connection to the community, and improve visibility for franchise owners.
Similar to other businesses, franchise locations pay various taxes that help contribute to the local economy. From income taxes to property taxes, this ongoing contribution can help fund local government services and community improvements, ultimately benefiting the area at large. For instance, the taxes collected by local governments, such as property taxes, can go toward funding services ranging from education to healthcare and more. The taxes can go directly into improving the community, ultimately fostering long-term prosperity for the local economy.
FRANCHISING WITH DOGTOPIA
If you are interested in bringing a dog daycare to your community to help meet the needs of pet parents and promote local economic growth, Dogtopia may be right for you. Our FAQ page includes several details about the booming pet industry, Dogtopia, and your investment. If you are ready to take the next step and meet the requirements for investing in a Dogtopia franchise, please fill out our convenient online form.