The International Franchise Association (IFA) has issued its 2022 Franchising Economic Outlook, which indicates that franchising is a driving force in the United States' economic resurgence.
The research reveals remarkable employment and business growth over all franchising industries, from Personal Services to Lodging, through 2021.
What is the forecast for 2022?
According to the statistics, 2022 will be another excellent year for employment and salary growth in the fast-growing, locally-focused franchising market.
Oxford Economics research indicates:
- Franchises pay approximately 3% more than similar independent businesses.
- Health insurance is provided by 65% of franchises.
- Vacation, sick leave, and other benefits are provided by more than 75% of franchises.
The following are some of the report's key highlights:
- Following the 2020 shutdowns, franchise output returned by more than 16% in 2021, reaching approximately $788 billion.
- Franchise growth is predicted to level out in 2022, with a 2.2% increase to 792,014 franchises, 17,000 higher than in 2021.
- Franchise employment is expected to rise at a rate of 3.1% to 8.5 million jobs, returning to pre-pandemic levels and representing a net gain of up to 300,000 jobs.
- Personal Services franchises are expected to dominate growth in 2022, followed by Commercial & Residential Services.
The report shows that states have seen varying economic recovery rates due to differences in business climates, migration trends, and changes in consumer preferences.
At the state level, it is anticipated that:
- In 2022, states in the West and South will have the fastest rising trend of franchise business growth.
- The Southeast region, which has the highest franchise concentration in the U.S., is expected to have 231,500 total establishments by 2022 while employing 2.6 million people and contributing $235.9 billion to the U.S. economy.
- Texas, Florida, Arizona, South Carolina, Idaho, Tennessee, North Carolina, Utah, Montana, and Nebraska are anticipated to be the top ten states for franchise expansion in 2022.
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