The Franchisor/Franchisee Relationship: How can this Relationship be Strengthened from the Franchisees’ Perspective?
Franchising plays a major role in the U.S. economy by providing growth and jobs. The International Franchise Association reported in 2009, the franchising sector was accountable for 9.5 million jobs and provided nearly $845 billion of economic output to the U.S. economy. Furthermore, for every new franchise business an estimated 20.6 either direct or indirect jobs are created and an additional $2.2 million output is achieved (Chabowski, Hult, and Mena 2011). The International Franchise Association also reported that there has been a 15 percent increase of franchising establishments in a 9 year period (2001 – 2009) from 767,483 to 883,292. Given these financial indicators, franchising has a major impact on the U.S. economy.