Franchising — the act of launching a small business by buying into a proven business model such as Carl’s Jr. or Big O Tires — is expected to grow in 2012 and to play a part in private-sector job creation that could aid the overall economy.After three years of decline, the number of franchise establishments is expected to increase nationally by 1.9 percent in 2012 — adding 13,928 new locations to an existing 735,751 units, a recent report projects. In 2011, franchises employed 7.9 million workers, a pool that is expected to increase by 168,000 mostly entry-level jobs, according to the 2012 Franchise Business Economic Outlook by IHS Global Insight, a forecasting and financial analysis firm.
Stan Nakano, Utah’s district director for the U.S. Small Business Administration, said that in fiscal year 2011 his office provided $29 million in loan guarantees to 57 franchises — a sizable amount but still less than 10 percent of its total loan volume. Salt Lake Tribune
