Top 10 States for Franchise Growth
In 2024, franchising is poised to significantly bolster economic growth across the United States, providing critical job and business opportunities at national, regional, and state levels. Drawing on the latest data from the International Franchise Association (IFA) and FRANdata, this detailed analysis highlights the top states leading the charge in the franchise boom.
National and Regional Growth Overview
In 2024, franchising is expected to drive economic growth across the United States, offering employment and business opportunities at various levels. According to FRANdata, the Southeast region leads in the number of franchised businesses, accounting for approximately 30% of all U.S. franchised businesses, employing 2.6 million people, and generating $268.2 billion in franchise revenue. The projected growth in franchise establishments in the Southeast and Southwest regions is expected to outpace the national growth rate, driven by factors such as population migration and a growing industry pool.
Top 10 States Analysis
Texas
With a projected growth rate of 3.3% in franchised establishments, Texas solidifies its position as a bastion of franchising excellence. By the end of 2024, the Lone Star State is forecasted to host 82,463 franchise units, buoyed by its burgeoning population and robust industry expansion. Renowned for its favorable regulatory climate and business-friendly policies, including low taxes and minimal regulations, Texas beckons entrepreneurs and investors alike, particularly in metropolitan hubs such as Houston, Dallas, and Austin.
Florida
Florida's franchise market is fueled by its attractive climate and the absence of state income tax, attracting individuals and supporting a vibrant consumer base for franchises. With a projected addition of 2,469 new franchise units in 2024, Florida's strong labor market contributes to its growth as a hub for new franchise opportunities. In addition to its favorable climate and lack of state income tax, Florida benefits from its status as a popular tourist destination. The influx of tourists contributes to a steady stream of potential customers for franchise businesses, especially in the hospitality and service sectors.
Georgia
Georgia stands out with one of the highest franchise establishment growth rates at 4.6%. The state is expected to welcome 1,430 new franchise units in 2024, funneling $2.9 billion into the local economy. Georgia's rapidly expanding industrial base makes it a prime location for new franchises. Georgia's capital, Atlanta, is a major economic hub in the Southeast, attracting businesses and talent from across the country. The state's strategic location as a transportation and logistics hub, with access to major highways, airports, and ports, facilitates the distribution and operation of franchise businesses.
North Carolina
North Carolina is on track to add 1,168 new franchise units in 2024, generating an economic output of approximately $2.3 billion. Strategic efforts to enhance its business climate make North Carolina an attractive state for franchise investments. North Carolina is known for its research and innovation ecosystem, anchored by Research Triangle Park (RTP) and leading universities such as Duke University and the University of North Carolina at Chapel Hill.
South Carolina
South Carolina is projected to experience a 5.2% increase in franchised establishments in 2024, with 840 new franchises contributing an estimated $1.7 billion to the local economy. The state's pro-business policies and affordability attract domestic migration and business investments. South Carolina offers a low cost of living and doing business, making it an attractive destination for entrepreneurs and franchise owners seeking affordability and opportunity.
Tennessee
Tennessee's strategic Southeast location and growing industries contribute to its attractiveness as a franchise hub. The addition of 708 new franchise units in 2024 involves investments totaling $1.4 billion, reflecting the state's commitment to maintaining a business-friendly environment.
Maryland
Positioned within the Mid-Atlantic region, Maryland charts a steady course for franchise growth, with 657 new units forecasted through 2024, contributing approximately $1.3 billion to the state's economy. Its proximity to affluent consumer bases and robust industries underscores Maryland's appeal as a franchise hub.
Arizona
Arizona shows a notable trend toward high-value, capital-intensive franchise operations. With 425 new franchise units projected through 2024, the state is expected to see investments totaling a substantial $8.5 billion, driven by its economy and favorable climate.
Colorado
Colorado is anticipated to introduce 415 new franchise units in 2024, with projected investments reaching around $8.3 billion. The state's startup culture and focus on sustainable practices contribute to its growing franchise market.
Virginia
Virginia will welcome 334 new franchises in 2024, with projected investments totaling $6.7 billion. The state's strong economic base and diverse industries support a stable environment for franchise growth, enhanced by its location near the national capital.
Conclusion
The top 10 states for franchise growth in 2024 represent significant opportunities for economic impact and entrepreneurship. Each state offers unique advantages and together they embody the dynamic nature of the U.S. franchise market. Whether you're considering expansion or entering the market for the first time, strategic planning and awareness of local market conditions are crucial. Don't miss out on the chance to establish your franchise in one of these thriving states. Seize the moment and take the next step towards your franchising success today!
Data courtesy of the International Franchise Association (IFA) and FRANdata.