Franchise Economic Outlook
The 2023 Franchising Economic Outlook is IFA’s annual study in partnership with FRANdata detailing the franchise sector’s performance for the past year and projected economic outlook for the year ahead, as well as an in-depth state outlook for all 50 states and Washington, D.C. The report highlights sector growth across eight key franchising business lines and details regional trends, including the top states
for franchise growth. It also provides key insights into the state of the U.S. economy, trends in business, and challenges facing small business owners.
Key highlights from the report include:
The overall number of franchise establishments will increase by almost 15,000 units in 2023, or 1.9%, to 805,000 units in the U.S.
Franchising will add approximately 254,000 jobs in 2023. Growing at 3.0%, total franchise employment is forecasted to reach 8.7 million.
The total output of franchised businesses — the measure of total economic activity in nominal dollars — will increase by 4.2% to $860.1 billion in 2023, up from $825.4 billion in 2022.
Franchises’ GDP share of the overall economy will remain stable at 3%. Compared with 2022, franchises’ GDP — the monetary value of all the finished goods and services produced within U.S. borders — will grow at a slightly slower pace of 4.2% to $521.3 billion.
Service-based industries and quick-service restaurants will witness higher growth than other industries.
Assisted Living Locators Bolsters Support for Franchise Growth
Assisted Living Locators, a top-ranked senior care referral and placement agency, announces a significant expansion of its training, coaching, and administrative team to accommodate and support the company's rapid franchise growth.
Hyperlink: Assisted Living Locators Bolsters Support for Franchise Growth with
How to Apply an Athlete’s Mindset to Franchise Leadership
What’s interesting is that many of these top performers share a common background: They were athletes in high school or college. Franchising is a popular business avenue for professional athletes as well—Shaquille O’Neal, LeBron James and Drew Brees own multiple franchise locations.
Link to: Game On: How To Apply An Athlete's Mindset To Franchise Leadership (forbes.com)
It’s graduation time and now more than ever, many college graduates have plans to become entrepreneurs through franchise ownership. This is due to several factors:
1. Mindset: The young entrepreneur values independence, creativity, and has the desire to make a meaningful impact.
2. Availability of Resources: Parents and grandparents have the resources and are helping with the initial financial requirements to support their child’s goals and entrepreneur spirit.
3. Education: Today, thousands of entrepreneurship courses are now offered in colleges and universities throughout the US. They help to provide students with the skills and knowledge to start and manage their own businesses. These programs foster an entrepreneurial mindset and provide practical training, mentorship, and networking opportunities.
4. Changing Job Market Dynamics: The traditional employment landscape has undergone significant changes, with increased competition, job insecurity, and a desire for greater work-life balance. 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 college graduates are increasingly embracing entrepreneurship, it's important to note that starting a business still carries risks and challenges. Exploring franchise opportunities with a franchise consultant helps to mitigate the risk through a comprehensive due diligence process. These opportunities are now viewed as a viable career path.