At the International Franchise Association, not a day goes by where we don’t hear incredible and inspiring stories from the franchising community.
Today, we released a detailed economic report crystalizing these stories into data, documenting the franchise sector’s performance for the past year, as well as the projected economic outlook for the year ahead.
The 2025 Franchising Economic Outlook projections say:
1️⃣ The number of franchise establishments will increase by more than 20,000 units, or 2.5%, to 851,000 total units.
2️⃣ Franchising is expected to add approximately 210,000 jobs, growing at a rate of 2.4%, bringing the total number of franchising jobs to 9 million.
3️⃣ Total franchise output is projected to exceed $936.4 billion in 2025, increasing by 4.4%, from $896.9 billion in 2024.
4️⃣ Georgia will be the number one state for franchising followed by North Carolina, Virginia, Arizona, South Carolina, Pennsylvania, Tennessee, Florida, Colorado, and Maryland.
5️⃣ Personal services and retail food, products, and services are expected to be the fastest-growing industries this year.
6️⃣ Finally, franchising will – for the second year in a row – grow faster than the U.S. economy, which is projected to increase by 1.9% in 2025 according to the Congressional Budget Office.
There are more encouraging signs and data points in the full report, and I hope you will take a minute to read it and learn more.
Bottom line: the future remains bright for franchising. Our model has displayed tremendous resiliency in recent years, powering through a global pandemic, once-in-a-generation inflation crisis, supply chain and other labor challenges.
Now, with some of these external pressures fading and a more favorable regulatory climate, we’re poised for even more growth in the year ahead.
We will discuss what all this means – and more – at the IFA Convention in Las Vegas next week. .
Read the full report here and let me know what you think about the outlook for 2025: https://lnkd.in/e8_B5MfZ.
Thank you to our friends at FRANdata for their support preparing this report, and Benetrends Financial for their partnership.