GF Issue 54

Communitymatters Any new business is a boon to a local neighborhood, but franchisees can offer far more than just job creation and local taxes espite having a global presence, most franchises integrate deeply into local communities through their dedicated franchisees, bringing not only a track record of success but also stand-out stability and benefits compared to independent businesses. Thanks to the backing of an established brand and tested business models, a franchisee setting up shop in a new area typically commits for the long term. This reliability allows them to confidently hire local staff, pay taxes, and contribute to the community without the uncertainties that often accompany independent ventures. Moreover, involvement in local charities, sponsorships, and fundraisers further cements their role as community supporters. Job creation and taxes Franchised businesses are incredibly reliable contributors of tax revenue to local authorities, being part of a much wider network. “Franchise businesses tend to have higher sales. Basically, you can afford to pay more people and pay people more, and as a result, you’re going to be raising more in taxes,” said Dan Rowe, CEO of FranSmart. One of the most immediate and obvious benefits of a franchisee opening a new location will be the jobs created for local people. Whether it’s a retail outlet or a tyre fitter, franchised businesses require a variety of staff of different levels of experience. But for expanding franchises, new store openings bring community benefits that extend beyond initial employment opportunities. “A single store employs up to eight individuals, but as our business is built on providing promoted to manager sooner than their non-franchised counterparts; 14% versus 11% after 20 months of employment. This represents a significant difference, as many franchisees offer their workers a career path, not just a job. While there may be no room for a franchisee to purchase local supplies, it can employ local services. Nothing stops a Five Guys Burger & Fries franchisee, for example, establishing a relationship with a local cleaning company or advertising agency. “Ancillary jobs are created in D solutions, the problem-solving skills and experience that our associates gain offer benefits that go beyond initial employment,” points out Joe Malmuth, chief franchising officer at Batteries Plus. “Our owners operate with the goal to growing their business and promoting from within, and cultivating a family is at the backbone of the model.” Brian Kelley, president and CEO of Phenix Salon Suites Franchising agrees, adding that franchising creates an ideal environment for businesses to thrive. “Our model makes it incredibly affordable for a lifestyle professional in the health, wellness and beauty industry to start their own ‘local’ business,” he says. “Franchising brings nationally recognized management tools and infrastructure to the local community, which benefits everyone.” In a 2021 joint report from Oxford Economics and the International Franchise Association (IFA), franchisees were found to offer employees better wages, benefits and opportunities to move up the ladder than equivalent independent businesses. This largely stems from the stability of a franchised business, which comes from being a part of a successful brand with successful practices. In fact, franchise systems often bring multiple layers of jobs, ranging from entry level to middle/ regional management opportunities. According to the report, franchise workers were INS IGHT 12 GLOBAL FRANCHISE | ISSUE 8.2