BMO Survey: 91 per cent of Franchise Owners See Growth or Steadiness in Economy
* Franchisees stand to benefit from growth in retail and service sectors
* Franchised businesses account for 40 per cent of all retail sales
* Over 78,000 franchises across Canada employ more than 1 million people
TORONTO - A survey by BMO Bank of Montreal released today found that an overwhelming majority (91 per cent) of Canadian franchisees are optimistic that the economy will grow or remain the same this year. The study also found that nine out of 10 expect their business will expand or remain steady this year.
“It’s encouraging to see the optimism among small business owners, including franchisees, in Canada,” said Steve Iskierski, Senior Manager, National Franchising Services, BMO Bank of Montreal. “Franchisees within both established and growing networks continue to benefit from their respective proven business models, which bodes well for this sector and reaffirms this positive outlook.”
The survey, conducted by Leger Marketing, also revealed that the top ways franchisees plan to take advantage of the strong loonie are to upgrade equipment (67 per cent) and expand operations (42 per cent).
This anticipated expansion of Canadian franchises parallels the overall economic growth expected, with gross domestic product pegged at 3 per cent and retail sales values likely to rise more than 4 per cent.
The many franchises that operate within the retail and service industry stand to benefit from sustained solid growth in the retail sector, says BMO Economics.
“Gradually rising interest rates will slow consumer spending only slightly this year, while healthy job growth will provide ongoing support,” said Sal Guatieri, Senior Economist, BMO Capital Markets. “Canadian retailers should enjoy another good year, though sales are likely to downshift modestly from the 5 per cent rate of last year.”
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