F45 will establish over three hundred fitness studios in the US this year and expand in cities across 34 states, including New York City, Hollywood, Seattle, and Las Vegas. Like other well-known franchises, F45 continues to spread its presence to new territories in the US, benefitting both local entrepreneurs seeking new business ventures and those looking for an effective method to get in shape.
Continuous investment in the F45 brand not only proves that the fitness landscape is well-positioned for growth, but that the franchise sector is alive and well. The sector is represented by over 700,000 businesses across the USA and has a gross domestic product (GDP) of $451 billion, contributing approximately 3% to the US GDP. Because of this, it is capable of delivering high-productivity jobs with great potential for income generation. The franchise system offers a proven business model and low overheads, which makes business ownership a stronger likelihood for aspirant entrepreneurs. This can help improve the nation’s unemployment challenges and stimulate economic growth.
According to the International Franchise Association’s (IFA) 2018 Franchise Business Outlook, the franchise sector is currently outpacing the rest of the U.S. economy by 3.7% in terms of growth. This supports the claim that franchising is relatively resilient, both in good and bad economic times. Estimates for 2018 had franchise industry revenue increasing by 6.1 percent to $451 billion.
Having the opportunity to become one’s own boss with one purchase, as opposed to growing a business from scratch, is very alluring to entrepreneurs who see positive year-over-year results for franchises. Most franchise establishments are basically small businesses if they are not run by corporate. Unit ownership, employing one to 19 workers, is the most common business structure of franchises actively operating in the US.
The National Franchise Report, which provides detailed insight into monthly U.S. private sector franchise market data and trends, shows that the number of new franchise jobs in January 2019 was better than anticipated, with 33,000 new positions filled..This is an improvement of 4,000 jobs from December’s 29,000. U.S. Senator John Barrasso acknowledged the role of franchises in stimulating economic growth: “Franchise-owned businesses are a critical component of America’s economy...creating economic and growth opportunities in the business community that have not existed for quite some time. Americans are able to keep more of their hard-earned money. Business confidence is high and companies are investing not only in their operations, but in their employees.”
Given the realistic possibility of retrenchment for employees in today’s economic climate of company cost-cutting, franchises provide a sustainable self-employment opportunity based on stability and a low risk of failure.