Franchise business owners say they are less likely to expand following the Nov. 6 elections, according to a survey of franchisors, franchisees and industry suppliers. The survey, held during a Nov. 7 telephone town hall meeting of nearly 1,800 International Franchise Association (IFA) members, reaffirms that new franchise business formation for 2012 is down from previous forecasts, and job creation remains flat amid uncertainty about the impending fiscal cliff and anticipated higher taxes.
According to the survey, 58% of the 160 respondents said they are less likely to grow following the elections; 24% said the elections have no change in their plans for growth, while 18% said the results of the elections will make them more likely to grow.
“While the results of the elections were status quo, the current status quo for small businesses is clearly not conducive to sustaining a meaningful economic recovery,” said IFA president and CEO Steve Caldeira. “The President and bipartisan members of Congress should immediately pass a short-term deal that averts the fiscal cliff at the end of the year and work together to address long-term fundamental fiscal reform, including comprehensive tax reform, reforming entitlement programs and reducing the unsustainable debt.”
Separately, a recent CSP Daily News poll asked, “How do you think the convenience store industry will fare during President Obama’s second term?” Of the more than 50 respondents, 40% said “worse,” 33% said “about the same,” 17% said “much worse,” and 10% said “better.” No one said “much better.” (CSP Daily News: www.cspnet.com)