In 2024, for the second year in a row, the franchise industry outperformed expectations thanks to upticks in consumer spending and slight improvements in the availability of labor. According to a report from the IFA, franchising is likely to keep growing and add more than 20,000 units and 210,000 jobs in 2025. 

This article from the franchise team at PBMares contains interesting industry statistics and other key takeaways from the report.

States Where Franchising Is Growing Fastest

Due to a lower cost of living and business-friendly policies, franchising is expanding quickly in the Southeast and Southwest. 

States where the industry is predicted to see the most significant expansion include:

  • Georgia
  • North Carolina
  • Virginia
  • Arizona
  • South Carolina

Georgia is expected to see the most substantial growth. The IFA report credits the state’s economic and workforce development initiatives, income tax cuts, and growing population for the strong outlook.

Sectors with Significant Predicted Growth

Because consumer behavior shows a preference for high-value goods and services, the following sectors are likely to grow:

  • Personal services like health and wellness, child and pet-related services, etc.
  • Retail food, products, and services.

Trends Impacting Franchise Growth in 2025

Trends that could help spur franchise growth include:

  • Remote workers returning to the office
  • Interest in entrepreneurial endeavors
  • Lower inflation
  • Efforts to stabilize interest rates
  • Stronger consumer confidence 
  • Advances in automation

Learn More

Navigating the financial complexities of a franchise requires expertise. From industry-specific regulations and franchise fees to properly managing royalties and tax implications, working with an experienced franchise team can optimize strategic decision-making.

As the industry experiences this upward trajectory, now is the perfect time to position yourself for financial success. Whether you’re opening a new franchise or looking to strengthen an existing one, think about securing ongoing support that can lead to sustained success.

Contact our team of franchise accounting experts today.