Inflation Is Impacting Some Franchisees More Than Others, But All Are HurtingA new report found that around 90% of franchisees noticed a moderate to substantial inflation impact on their business.
Risinginflationhas taken no mercy, with nearly every industry being impacted.
Andfranchiseesin particular have been hit hard — a newreportby theInternational Franchise Associationfound that nearly 90% of franchisees have noticed a moderate to substantial inflation impact on their business.
The survey examined 1,004 respondents who cumulatively own more than 4,984 franchise businesses. Nine of out 10 franchisees reported raising costs at their units to combat rising costs of goods andlabor.
Among the two leading culprits that led to rising costs were gasoline and fuel prices, followed by labor-related increases.
However, the inflationary damage has impacted some industries more than others. Lodging (90%),快餐(83%), and child-related businesses (61%) saw the most impact, with beauty-related industries (51%) seeing the least.
The one saving grace amid the inflationary pressures within thefranchise industryhas been the support among peers — 47% of respondents said they've received support from other franchisees during the difficult time, with retail franchisees reporting the most peer support at 69%.
