Franchise Statistics, National & Local Business Growth Rates

After the pandemic hit the retail industry, 2021 turned out to be an exceptional year, but 2022 is another strong recovery year for us.

The franchise industry is expected to expand continually, trending upwards with the United States overall economic progression.

However, the growth is still moderate due to the economy’s current situation. This article will discuss the Franchise Statistics National & Local Business Growth Rates. So let’s begin.

Franchise Statistics, National & Local Business Growth Rates

Key Prediction Of Franchise Statistics National for 2022

franchise business output
  • The contribution of the franchise to GDP will remain stable at 3%, but the growth rate is slow to 5.7%.
  • We predict that more than 792,000 franchising companies will establish by the end of the year, adding a gain of 17,0000 new locations and a marginally lower growth of 2.2%. 
  • The output of the franchise business is to improve by 4.9% to $826.6 billion in 2022
  • A slow growth rate also affects franchise employment. It is forecasted that only 3.1% of a total of 8.5 billion jobs growth rate will be seen.

Read: Franchise Statistics In USA 

Read: Franchise Profitability Statistics 

Franchise Business Economic Outlets

Percentage change In Establishment2.8% 2.2%
Employment8,192,600 8,449,162
GDP ($ billion)$474.2 $501.0
Percentage change in GDP6.2%5.7%

State Franchise Outlook

Franchising plays a vital role at the national level and in the states. The national franchising level bounced back to the pre-pandemic level in 2021.

But the states have experienced a different level of recovery because of state disparities in business climates, migration trends, and changes in consumer preferences, among others.

Some franchise brands were shut down during the pandemic, which reduced capacity restrictions and decreased customer demand for their products and services, especially as local and state government mandates caused additional and unexpected closures and limitations due to periodic increases in COVID-19 cases.

Regional Trends &  Local Business Growth Rates

The franchise plays an essential role at the state level. After the pandemic hit, the state didn’t recover the growth rate because of disparities in business climates, changes in consumer preference, and migration trends.

According to records, The West and South will experience the fastest growth in franchise business growth in 2022, while other states will still ramp up a slightly lower growth rate. 

  • The Southeast region has the highest franchise Concentration with an estimated 231,500 total establishments by 2022, employing 2.6 million workers and contributing $235.9 billion to the USA economy and employing 2.6 million workers. 
  • In 2022, the Top 10 states for franchise growth are projected to be Texas, Florida, Arizona, South Carolina, Idaho, Tennessee, North Carolina, Montana, Nebraska, and Nevada.

Top 10 State By Growth Rate

Franchise Establishments

As per records, it is estimated that the total franchise establishment will reach 774,965 in 2022, with a growth rate of 2.8%.

In 2021, all eight industries achieved great momentum as the economy rebounded badly after the pandemic-induced recession.

So, we can predict that 2022 has the potential to achieve the highest growth rate compared to 2021.

States202020212022Growth Rate (21-22)
South Carolina14,35214,82915,2733.0%
North Carolina27,19428,21128,9902.8%

Franchise Employment

States202020212022Growth Rate (21-22)
South Carolina144,451157,903164,1073.9%
North Carolina307,075337,038349,4873.7%

Franchise Output (In Million $)

States202020212022Growth Rate (21-22)
South Carolina$11,485$13,438$14,2095.8%
North Carolina$25,714$30,197$31,8685.5%

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