The International Franchise Association (IFA) recently released its annual Economic Outlook Report detailing the franchise industry’s projected economic forecast for 2021. Conducted by FRANdata, the report offers an in-depth look into franchising’s growth trend following the economic fallout due to the COVID-19 pandemic, as well as an in-depth state outlook for all 50 states and Washington D.C.
- FRANdata projects that more than 26,000 new franchised businesses will open in 2021, recovering most of the previous year’s losses. Franchises will employ some 8.3 million people, adding nearly 800,000 new jobs.
- It is expected that new business openings will shift away from larger employers, such as hotels and sit-down restaurants, while more automation in all businesses will change the employment landscape.
- The four sectors expected to have accelerated growth in 2021 (in no particular order) are Retail, Real Estate, Commercial and Residential Services, and Business Services.
- FRANdata forecasts that the states expected to sustain the highest franchise business growth in 2021 in order are Ohio, Florida, Michigan, Colorado, Texas, Georgia, Arizona, Virginia, North Carolina, and Wisconsin.
- Franchising is expected to experience the highest upswing of franchise sales since the last recession.
Download and review the full report here. Want more of the highlights? Download the executive summary here.