The 2023 Franchising Economic outlook is IFA’s yearly study in collaboration with FRANdata that details the franchise sector’s performance during the previous year and anticipated economic forecast for the year ahead, as well as an in-depth state outlook for all 50 states and Washington, D.C. The research covers industry growth across eight core franchising business lines and details regional patterns, including the top states for franchise growth. It also gives important insights on the state of the US economy, business trends, and the issues that small business owners face.
Key highlights from the report include:
- The entire number of franchise businesses in the United States will expand by over 15,000 units in 2023, or 1.9%, to 805,000 units.
- By 2023, franchising will have added around 254,000 jobs. Total franchise employment is expected to reach 8.7 million, growing at a 3.0% annual rate.
- Total output of franchised enterprises will rise by 4.2% to $860.1 billion in 2023, up from $825.4 billion in 2022.
- The GDP share of franchises in the total economy will stay steady at 3%. Franchise GDP – the monetary worth of all finished products and services produced within US borders — will expand at a somewhat slower rate of 4.2% to $521.3 billion in 2022.
- Service-based industries and quick-service restaurants will witness higher growth than other industries.
Many young people want to start their own businesses through franchise ownership. This is attributable to a number of variables, including:
- Attitude: The young entrepreneur appreciates independence, innovation, and the drive to make a significant difference.
- Resource Availability: Parents and grandparents have the resources and are assisting with the first financial needs to support their child’s aspirations and entrepreneurial spirit.
- Education: Thousands of entrepreneurship courses are now available in colleges and universities around the United States. They contribute to students gaining the skills and information needed to start and manage their own enterprises. These programs encourage an entrepreneurial attitude while also providing hands-on training, mentorship, and networking opportunities.
- Changing Job Market Dynamics: With rising competition, job insecurity, and a desire for more work-life balance, the traditional employment environment has experienced substantial changes. Some college graduates see entrepreneurship as a way to create their own job opportunities, build wealth, and have more control over their professional lives.
While more youngsters are embracing entrepreneurship, it’s crucial to remember that establishing a firm still comes with risks and hurdles. Exploring franchise prospects with a franchise consultant reduces risk through a thorough due diligence process. These possibilities are now regarded as a realistic professional path.
If you wish to explore franchising opportunities please follow the link HERE, or if you would like to discuss with one of our specialists to help you make the best choice give us a call at 888-634-6248 or schedule a consultation HERE
