Franchising continues to exceed projected growth expectations. Franchise expert Derek Cafferata helps explain why franchising has such a positive outlook for the future.

Franchising into 2020 and Beyond

To date, 2019 has seen above expected growth within the franchising industry, growth that has continued on from the previous year. Economic stability, the current Administration, employment and consumer spending are all factors that lead experts to continue with their positive forecast for the small business sector, in particular the franchising sector.

Pro-Business Policies

The current Trump Administration shows continued commitment to encouraging small business with tax relief, regulatory changes and numerous pro-business policies in order to continue to stimulate the U.S. economy and increase job opportunities and employment nationwide.

This is good news for the franchising industry which will only continue to thrive under these types of pro-business policies.

Role of Franchising in Small Business

Franchising plays an important role in the small business sector, and in the overall economy of the U.S. Across the country, franchising directly supports more than 7.6 million jobs and yields an impressive $674 billion, that’s approximately 25 percent of the country’s Gross Domestic Product (GDP).

Over 14 percent of U.S. businesses are franchise businesses. Franchising holds a strong presence in a wide range of industries across its approximately 760,000 franchising units currently in operation.

The most popular industry remains the quick-service food industry. While this industry has remained at the forefront of franchising for a long time, there are some changes becoming evident to meet consumer need and demand.

According to Derek Cafferata, CEO and President of franchising experts All State Franchise Finders, this particular industry is seeing a move to on-demand delivery. “Many fast-food restaurants have clicked on to the idea of alternate ways to serve their customers,” says Derek. “On-demand delivery, pre-ordering via mobile apps and even catering options are some of the ways the savvy quick-service restaurant franchises are leading their markets.”

Financing With 401K Rollovers

With thanks to provisions in the tax code, among other things, financing a new franchise unit with a 401(k) plan has become a more attractive option for many who previously had the desire to start their own business but thought financing such a dream was out of reach.

“Your 401(k) can be tailored to meet the requirements necessary to fund a franchise business,” says Derek. “Rolling over your funds into a 401(k) plan that is correctly set up means you can use finance from multiple sources and multiple people.”

Derek believes there are some great benefits to utilizing a 401(k) plan. You can invest in a business without having to pay taxes or penalties, you can secure funding quickly, there is no debt or loan repayments to worry about and you don’t have to put your family home up as security.

Franchising With All State Franchise Finders

Utilizing a retirement fund to finance a new business is best carried out with the advice and guidance of an expert. Derek and his team at All State Franchise Finders are considered the leading experts in the franchising industry. For those considering entering into the business world of franchising, contact one of the team at All State Franchise Finders on 1-800-544-2161 or visit allstateff.com today.