I N S T I T U T EAccelerating the Mission of Franchising

More than 2,000 executives are actively partic-ipating as candidates and graduates in the

Certified Franchise Executive program. At the IFA Annual Convention, 163 executives will receive their CFE designation, including the U.S., Australia, Dubai, Mexico, The Philippines, Taiwan, and Thailand. ICFE’s mission is to enhance the professionalism of franchising by certifying the highest standards of quality training and education. Learn how you can become a CFE at www.franchise.org/cfe.

“As an educator, I understand that education is THE key to career success. Becoming a Certified Franchise Executive is THE key to franchising success.” —GAIL JOHNSON, CFE, FOUNDER AND CHAIRMAN RAINBOW STATION.

www.franchise.org/cfe

DiversityFran helps IFA members reach emerging markets, and increase diversity in franchising,while educating minority communities about the great opportunities in franchising. DiversityFran uses the power of diversity to accelerate the mis-sion of franchising.

Learn how your company can join other leading brands to partner with the Diversity Institute and organizations including Latino Leaders Magazine, the National Black MBA Association, the National Urban League, Univision, the NAACP, and the U.S. Hispanic Chamber of Commerce and others.

MINORITYBUYING POWER

IN 2015

$2.1 TRILLION

www.franchise.org/ diversityfran

I N S T I T U T EAccelerating the Mission of Franchising

NextGen In Franchising is dedicated to creating a talent pipeline for future franchi-sees, franchisors and suppliers, by engaging and educating the next generation. NextGen engages young entrepreneurs and students who are seeking careers and business opportunities in the franchising industry. These young men and women represent a huge talent pool from which to seek future franchise owners, managers and employees for franchise businesses, and entrepreneurs with ideas and energy for new franchise concepts.

Last fall the second annual NextGen In Franchising Global Contest was launched at www.nextgenfranchising.org. More than 250 entries were received from young entrepre-neurs with early-stage franchise businesses, from across the U.S. and around the world. The top 20 winners were selected by judges to participate in the NextGen in Franchising Accelerator Program at the IFA Annual Convention in San Antonio.

Founded in 1991 by Don Dwyer, Sr., VetFran offers assistance, jobs, and financial incentives to veterans seeking to become franchise owners. Since 2011, more than 238,000 veterans and spouses have found employment in franchising, and more than 6,500 have become franchise owners.

To learn more about how your company can join VetFran, visit www.franchise.org/vetfran.

“Thousands of servicemen and women are exiting from the armed services and transitioning to civilian careers. Many will need to gain experience in the commercial world to prepare them for future success. VetFran has been an outstandingly successful program for our veterans, providing jobs and opportunities for thousands of veterans and their spouses in recent years. Franchising and veterans make a great combination and truly a winning proposition!”

—GORDON LOGAN, FOUNDER AND CEO, SPORT CLIPS HAIRCUTS

“I am thrilled to be a part of NextGen and I am looking forward to the years ahead of helping young entrepreneurs to achieve their dreams in franchising as I have.”

—DAVID MCKINNON, CFE, SENIOR ADVISOR TO THE BOARD, THE DWYER GROUP

On September 28th the Foundation hosted the first Franchising Gives Back Annual Awards Dinner at the JW Marriott in Washington, D.C. Fifteen IFA members were recognized for their outstanding charitable and community support initiatives in five categories—Spirit of Franchising, Enduring Impact, Newcomer, Support Our Veterans, and Innovation and Impact.

Winners were recognized with an extensive media campaign to put the spotlight on how franchise businesses support their communities through-out the year. Established by a generous donation from Roark Capital Group, Franchising Gives Back salutes the best, most innovative community leaders and charitable programs nationwide. See profiles of the award winners and learn how your company can participate by visiting www.franchisinggivesback.org.

2016 FRANCHISE BUSINESS ECONOMIC OUTLOOK

Franchise Business Economic Outlook, 2007-2016

Franchise Businesses Create Jobs Faster than Other Businesses

FRANCHISE BUSINESS ECONOMIC OUTLOOK

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

770,835 774,016 746,646 740,098 736,114 747,359 757,857 769,782 782,573 795,932 0.4% -3.5% -0.9% -0.5% 1.5% 1.4% 1.6% 1.7% 1.7%

7,994,000 8,028,000 7,800,000 7,780,000 7,940,000 8,127,000 8,334,000 8,573,000 8,834,000 9,112,000 0.4% -2.8% -0.3% 2.1% 2.3% 2.5% 2.9% 3.0% 3.1%

$675 B $696 B $674 B $699 B $734 B $768 B $804 B $845 B $892 B $944 B 3.2% -3.2% 3.6% 5.0% 4.7% 4.7% 5.0% 5.6% 5.8%

$403 B $410 B $405 B $414 B $434 B $453 B $473 B $496 B $523 B $552 B 1.8% -1.2% 2.2% 4.8% 4.4% 4.4% 4.8% 5.5% 5.6%

EstablishmentsPercent change Direct Employment Percent change

OutputPercent change

GDPPercent change

Source: IHS Global Insight

Source: IHS Global Insight

Source: IHS Global Insight

Source: IHS Global Insight

The output of franchise establishments in nominal

dollars in 2016 will increase 5.8 percent from $892 billion to $944 billion (an increase

of $52 billion).

The number of franchise establishments in the United

States will increase by 1.7 percent in 2016, from 782,573

to 795,932 (an increase of 13,359).

The number of direct jobs in franchise establishments will increase 3.1 percent in

2016 from 8.834 million to 9.112 million (an increase of

278,000).

OUTPUT ESTABLISHMENTS EMPLOYMENT

Franchise Business Economic Outlook by Business Lines: 2016

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

ESTABLISHMENTSBUSINESS LINES EMPLOYMENT OUTPUT($ BILLIONS)

Amount Percent change over prior year

Amount Percent change over prior year

Amount Percent change over prior year

Automotive

Business Services

Commercial & Residential Services

Lodging

Personal Services

Quick Service Restaurants

Real Estate

Retail Food

Retail Products & Services

Table/Full Service Restaurants

TOTAL

31,968

99,029

64,670

27,479

115,783

159,839

91,950

63,840

103,130

38,244

795,932

1.5%

2.0%

1.6%

1.8%

1.8%

1.5%

1.7%

1.5%

1.9%

1.6% 1.7%

199,300

1,026,700

384,500

771,700

720,500

3,446,800

327,800

535,500

547,000

1,152,200

9,111,900

3.0%

3.3%

2.8%

2.8%

2.6%

3.3%

2.4%

3.2%

3.7%

3.3%

3.1%

43.84

175.60

59.31

96.33

101.53

248.28

57.44

44.61

46.58

70.09

943.60

4.6%

5.9%

4.4%

6.6%

4.9%

6.3%

5.7%

4.7%

6.4%

6.3%

5.8%

EMPL

OYME

NT 20

07-20

16: Franchise Businesses compared to ALL Businesses

-0.9%

0.4%

-2.8%

-0.3%

2.1%

-5.2%

-0.8%

1.8%2.2% 2.1%

EMPLOYMENT DISTRIBUTIONBY SECTOR: 2016

COMMERCIAL & RESIDENTIAL

SERVICES

REAL ESTATE

AUTOMOTIVE

RETAIL PRODUCTS & SERVICES

Food & Hospitality

Services Sector

Real Estate & Automotive6%

8%

11%

6%

4%

4%

2%

ESTIMATES FORECAST (January, 2016)

3.1%

278,

000

JOB

S

13,3

59E

STA

BLI

SH

ME

NT

S

$52

BIL

LIO

N

5.8% 1.7%

BUSINESS SERVICES

PERSONAL SERVICES

FRANCHISING ALL BUSINESSES

January, 2016

RETAIL FOOD

LODGING

QUICK SERVICE RESTAURANTSTABLE/FULL SERVICE

RESTAURANTS

65%

29%

13%

38%

8%6%

2.3% 2.5%

2.3%

2.9%

2.4%

3.0% 3.1%

1.9%

“Franchising Gives Back recognizes and promotes the contributions of franchise business leaders year-round. From supporting Little League baseball teams, to donating food for homeless shelters, to organizing marches for

cancer research, franchise businesses donate billions of volunteer hours and dollars to give back to their communities. Big or small, the combined local contributions of franchising create a significant impact worldwide.”

—STEVE ROMANIELLO, CFE, MANAGING DIRECTOR, ROARK CAPITAL GROUP

In January, the Foundation released the 2016 Franchise Business Economic Outlook prepared by IHS Economics, which forecasts growth in the number of establishments, economic output, and jobs at a higher pace than the rest of the economy. The ADP monthly franchise jobs reports con- tinue to show that franchise businesses are adding much-needed jobs, at a faster pace than other businesses.

The Foundation is anticipating the release of the 2012 Economic Census in mid-February and has engaged PwC to begin work on the Franchise Business Economic Impact Study, Volume 4 and the 5-year (2007-2012) business continuity study, that will compare franchise business performance and sustainability to non-franchise businesses.

Research helps advance IFA’s advocacy efforts by educating lawmakers about the critical role franchise businesses play in the U.S. economy and around the world.

IFA’S MISSION: Protect, Enhance, & Promote Franchising

www.franchise.org

InformationFor more information about Foundation programs and activities, contact the staff:

John Reynolds, CFE Presidentjreynolds@franchise.org202-662-0764

Miriam Brewer, CFE Senior Director, Education and Diversitymbrewer@franchise.org202-662-0784

Rose DuPont Director, Certification Programrdupont@franchise.org202-662-0771

George EldridgeCoordinator, VetFran Programgeldridge@franchise.org202-662-0789

Gionne JonesSpecial Projects Coordinatorgjones@franchise.org202-662-0772

“When franchising industry leaders established the IFA Educational Foundation in 1983, their vision was an organization that would become ‘an active partner with the International Franchise Association—in shaping the future of franchising.’ Their vision is alive

and well today thanks to the generous support of many IFA members who over the years have donated their time, talent, energy and money to the Foundation. I encourage you to get involved and support the Foundation’s programs.”

—DOC COHEN, CFE, CHAIRMAN, FRANCHISE EDUCATION AND RESEARCH FOUNDATION

Special Thanks to Our Major DonorsApple Pie Capital

Arby’s Foundation

The Stewart & Jane Bainum Fund

Melanie Bergeron

BDO USA LLP

Joseph Bourdow

BrightStar Franchising LLC

Choice Hotels Intl.

Choice Hotels Foundation

Coca-Cola Foodservice & On Premise

Lawrence Doc Cohen

DLA Piper LLP

Dina Dwyer-Owens

The Dwyer Group

Jack Earle

Ecolab

Edible Arrangements

Ron Feldman

First Service Brands

Fish Consulting

FOCUS Brands

Franchise Business Review

Franchise Times

Global Franchise Group LLC

Golden Corral Buffet & Grill

Kathleen Gilmartin

Aziz Hashim

Home Instead Senior Care

International Franchise Association

Michael Isakson

Jani-King Intl.

Stephen P. Joyce Fund

Joe & Kristen Lindenmayer

Gordon Logan

John Luther

Marriott Intl.

J. Willard & Alice S. Marriott Foundation

Massage Envy Franchising LLC

David McKinnon

Menchie’s Frozen Yogurt

Tabbassum Mumtaz

PepsiCo Foodservice

Roark Capital Group

The Romaniello Family

Safeguard

Julius & Joanne Shaw

Steve & Judy Siegel

Sport Clips, Inc.

Jim Squire

Shelly Sun

Two Men & A Truck Intl.

The UPS Store

Ken & Vickie Walker

WSI/ Tutor Doctor

To learn more about how you can participate in and support ourprograms visit www.franchise.org/educational-foundation.

A global resource of

EDUCATION and

RESEARCH serving the franchise community.

The Franchise Education and Research Foundation, is a 501(c)(3) tax exempt organization. The Foundation is supported through the generous contributions of IFA members and others. All contributions are tax deductible.