WASHINGTON - Franchise businesses are poised for stronger growth in 2011, according to the International Franchise Association.

As the economy recovers from the "Great Recession," the 2011 Franchise Business Economic Outlook forecasts a rebound in the number of establishments, jobs and economic output in the franchise industry.

The 2011 Outlook estimates that the number of franchise establishments will grow 2.5 percent in 2011 from an estimated 765,723 to 784,802 ?" an increase of 19,079 new establishments.

The number of direct jobs is projected to grow 2.5 percent from an estimated 7.6 million to 7.8 million, creating 194,000 new jobs. Economic output is projected to grow 4.7 percent or $33.3 billion from an estimated $706.6 billion to $739.9 billion.

"The forecast of stronger growth in 2011 for franchise businesses is good news for our country. When franchise businesses are stronger, so is our economy as a whole," said IFA President and CEO Stephen J. Caldeira. "However, while the forecast reflects a stronger outlook for the franchise industry and the overall economy, franchise businesses will continue to struggle with accessing sufficient credit that would enable business expansion and job growth."

Meanwhile, the report notes that access to credit remains a top concern. Both franchisors and franchisees say the tight credit market has severely limited their ability to expand their business. Nearly one-third of franchisors report that more than one-half of their franchise prospects and current franchisees were unable to get financing in the past 12 months. Only 8 percent say that their prospects and franchisees have had "no problems with financing."

Two-thirds of franchisors report that they have seen "no improvement in credit access in recent months."

Forty-two percent of franchisors report that lack of credit has "significantly impacted their ability to expand," 45 percent say it has "moderately impacted their ability to expand" and only 12 percent say it has had "no impact." Fifty-five percent of franchisees report that the lack of credit has had a "significant" or "moderate" impact on their ability to expand their business.

In addition, Caldeira said that while the recently enacted tax and unemployment benefit package including extension of the current tax rates for two years contributed to the stronger outlook for 2011, IFA urges the new Congress to implement a pro-growth agenda to help small businesses grow.

"It is widely acknowledged that small businesses, including locally owned franchise businesses, contribute greatly to job creation in the U.S.," said Caldeira. "To keep the recovery going, we urge the new Congress and the Obama administration to adopt policies that help, not hamper businesses?? ability to grow and expand, including making the current tax rates permanent and addressing provisions in the new health-care law that are onerous, costly and potentially devastating to the franchising community."