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Growing the Global Franchise Industry

Did you know that ADP® serves thousands of franchise clients worldwide? As part of our commitment to the industry, our franchise channel is the founding sponsor of the International Franchise Association’s Franchise Action Network (FAN) and the well-known Franchisee of the Year award.

ADP had a strong showing during the recent FAN annual meeting in Washington, D.C. Ahu Yildirmaz, vice president and co-head of the ADP Research Institute®, presented the keynote to the nearly 1,000 people in attendance. Through a unique analysis of the ADP National Franchise Report®, Ahu shared insights about employment trends among franchises. A few highlights include:

  • Employment growth among franchises is outpacing employment growth among small businesses overall. Franchises have grown at 2.6%, whereas small business and the overall national employment has grown at 1.4% and 2.0%, respectively.
  • Since the recession of 2008, franchises in the West and South have outperformed those located in the Northeast and Midwest. Recent trends suggest growth in all regions is beginning to converge.
  • Regarding workforce composition, more females work in franchises (53%) than do males (47%). Among non-franchise businesses, the reverse is true: Males comprise 55% of the workforce, compared to 45% comprised of females.
  • Our ADPRI data also shows that pay equity is greater among franchises compared to non-franchises. For every dollar males earn in franchises, females earn .93 cents. For every dollar males earn among non-franchise, females take home .67 cents.

Later, Neema Ardebili, Vice President, Business Development & Global Franchise, took the podium to kick off the Franchisee of the Year award dinner. Neema highlighted ADP’s continued commitment to the franchise community, including introducing new applications that integrate point-of-sale systems with ADP products. In addition, to highlight the rich history of franchises, Neema gave a thoughtful review of how the franchise model has evolved over time, and the impact it has had on society. For example:

  • In Medieval times, a government often allowed a select few individuals to assess and collect taxes on its behalf across its territories.
  • In the mid-1800’s, a German beer brewer gave permission to a few local taverns to sell its beer.
  • In the late 1880’s, the Singer Sewing Machine company created special licensing arrangements with store owners across the country, resulting in tremendous sales growth.
  • Perhaps most famously, Henry Ford’s decision to franchise dealers for his Model T – and how oil companies soon followed suit by franchising gas stations – has transformed life in America, and around the world.

ADP’s presence in the global franchise industry continues to grow, thanks to our partnership with IFA and the efforts of our franchise channel.

For more information about ADP Research Institute, click here. If interested in learning more about how ADP can assist your franchise, click here.

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Copyright © 2017 ADP, LLC. ALL RIGHTS RESERVED. ADP, the ADP Logo, ADP National Franchise Report and the ADP Research Institute are registered trademarks of ADP, LLC. All other marks belong to their owner.

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