The franchise industry is set to have a good year. The 2018 Franchise Business Outlook has been published by the International Franchise Association (IFA), and the industry’s growth looks very optimistic. According to the association’s research, the franchise industry is expected to expand for the eighth straight year. The IFA estimates that franchise output will increase by 6.2 percent to a whopping $757 billion.
So, what are the causes for this momentum, and how can entrepreneurs cash in?
Fuel for franchises
One major factor that has benefited franchises is the tax overhaul passed by the Trump administration in December of last year. The new tax law reduced the corporate tax rate from 35 percent to 21 percent—a major coup for business owners. With the tax rate reduced, franchisees will have more cash in their pockets to spend on their businesses.
Congress also significantly scaled back regulations on small businesses and large corporations alike. With fewer restrictive barriers, franchises will have more room to flourish. And with a conservative Congress and president, the country’s business restrictions may very well be loosened even more.
Breaking into franchising
Entrepreneurs may be wondering how to take advantage of the franchise industry’s current strength. After all, 2018 looks like a promising year to break into the industry by purchasing or investing in a lucrative franchise. The first step is to evaluate the market and decide whether the risk of jumping into franchising is worth the reward. You should also research which franchises are likely to be most successful in the upcoming years. When you are ready to dip your toes into some business opportunities, a business attorney who specializes in franchising can help you get started.