The University of New Hampshire’s franchising sector-focused RIFC 50 Index™ ended the year with a strong performance, adding 11.6% to its market value this last quarter of 2021. This performance confirms the solid recovery of the franchise sector despite the fast spread of the new omicron variant of the Covid virus.
“Overall, the US and global economies staged strong recoveries in 2021, fueled by the widespread deployment of vaccines, stimulative fiscal policies, and expansionary monetary policies that have drastically expanded money supply and have kept the cost of capital very low with interest rates near zero”, said Dr. E. Hachemi Aliouche, director of the Rosenberg International Franchise Center at UNH’s Peter T. Paul College of Business and Economics, and developer of the RIFC 50 Index. Avis Budget Group, BBQ Holdings, and Joint Chiropractic led the index with triple digit increases. 2021 was still a challenging one for most businesses, including franchise businesses. The fast spread of the new omicron variant, widespread labor shortages, higher wage costs, supply chain disruptions, and accelerating inflation were tough challenges businesses had to face. Despite this, many franchise businesses were successful in generating significant shareholder values.
Read the full Q4 2021 report
RIFC 50 Index quarterly reports offer a succinct look at the financial performance of the US franchising business sector and compares it to the overall market performance represented by the S&P 500 Index.
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