2025 Economic Outlook Franchises | Franchise Growth Trends

Posted by Charles Dean Smith, Jr. in Business Advisory, Franchise.

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.

Be sure to consult with your financial or tax advisor on this topic as individual situations may vary. The information contained in this article or webinar, and any related materials, are for informational purposes only, and cannot be relied upon for legal, financial, tax, accounting, or other professional services advice. The content is provided on an “as is” basis and PBMares makes no representations or warranties about the accuracy or sustainability of any information for your purposes. For any specific questions you may have, please contact us.

This content is accurate at the time of publication. Always ensure you are reviewing the most recent information available. Contact your tax or financial advisor if you need clarification.