The 10 fastest-growing states for franchise growth are...
Franchise growth in the Southeast and Southwest is forecast to outpace the rest of the U.S. franchise market in 2025.
That’s according to the International Franchise Association’s annual Franchising Economic Outlook, which expects growth of 6.2% in the Southeast and 8.5% in the Southwest, fueled by the regions’ business-friendly policies and lower cost of living. Georgia is projected to be the leading state for franchising growth in 2025. (See list of 10 fastest-growing states at end of article.)
Total franchise output is projected to exceed $936.4 billion in 2025, increasing by 4.4%, from $896.9 billion in 2024. Personal services, as well as retail food, retail products and retail services in 2025, increased by 4.3% and 3.5%, respectively.
Other findings from the report are below.
- The number of franchise establishments will increase by more than 20,000 units, or 2.5%, to 851,000 total units.
- In 2025, franchising is expected to add approximately 210,000 jobs, growing at a rate of 2.4%, bringing franchising employment to more than 9 million jobs.
- Franchising employment grew by 2.2% in 2024, adding more than 189,000 jobs.
- Franchising will grow faster than the U.S. economy, which is projected to increase by 1.9% in 2025 according to the Congressional Budget Office.
The 10 fastest-growing states for franchising in 2025 are predicted to be:
- Georgia;
- North Carolina;
- Virginia;
- Arizona;
- South Carolina;
- Pennsylvania;
- Tennessee;
- Florida;
- Colorado; and
- Maryland.
Conducted by research and analytical firm FRANdata, an industry-leading research and analytical firm, the 2025 Franchising Economic Outlook is IFA's annual study 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 full report is available here.
