Report Says Franchise Growth Expected To Expand By 2.2% In 2022

Report Says Franchise Growth Expected To Expand By 2.2% In 2022

By: Kerry Pipes | 7,913 Reads | 61 Shares

Report Says Franchise Growth Expected To Expand By 2.2% In 2022

%3Cp%3ELast+year+was+a+good+one+for+franchising+and+2022+looks+to+be+another+strong+year+buoyed+by+franchise+job+and+wage+growth%2C+according+to+the+IFA%26rsquo%3Bs+2022+Franchising+Economic+Outlook+report.+That%26rsquo%3Bs+good+news%2C+but+the+report+also+cautions+that+policy+proposals+and+economic+headwinds+could+impact+continued+growth.%3C%2Fp%3E%0D%0A%3Cp%3E%26ldquo%3BAt+every+level%2C+local+franchise+businesses+offer+opportunities+for+economic+and+career+advancement%2C%26rdquo%3B+said+IFA+President+and+CEO+Matthew+Haller.+%26ldquo%3BFor+aspiring+entrepreneurs%2C+franchising+removes+barriers+so+they+can+more+easily+open+their+own+businesses+while+creating+quality+jobs+and+uplifting+local+economies.+As+we+continue+to+navigate+pandemic-related+challenges%2C+policymakers+should+resist+the+urge+to+adopt+a+hard+posture+against+the+local+businesses+leading+our+economic+recovery.%26rdquo%3B%3C%2Fp%3E%0D%0A%3Cp%3EThe+annual+study+details+the+franchise+sector%26rsquo%3Bs+performance+over+the+past+year+and+projected+economic+outlook+for+the+year+ahead%2C+as+well+as+an+in-depth+state+outlook+for+all+50+states+and+Washington%2C+D.C.%26nbsp%3B%3C%2Fp%3E%0D%0A%3Cp%3EKey+highlights+from+the+2022+report+include%3A%26nbsp%3B%3C%2Fp%3E%0D%0A%3Cul%3E%0D%0A%3Cli%3EFollowing+2020+shutdowns%2C+output+for+franchises+rebounded+by+over+16%25+in+2021%2C+reaching+nearly+%24788+billion+in+output.%3C%2Fli%3E%0D%0A%3Cli%3EFranchise+growth+is+expected+to+stabilize+in+2022%2C+expanding+by+2.2%25+to+reach+a+total+of+792%2C014+franchise+establishments%2C+17%2C000+more+than+2021.%3C%2Fli%3E%0D%0A%3Cli%3EFranchises%26rsquo%3B+GDP+contribution+to+the+overall+economy+will+remain+stable+at+3%25+in+2022%2C+but+the+growth+rate+is+likely+to+slow+to+5.7%25%2C+still+higher+than+the+pre-pandemic+level.%3C%2Fli%3E%0D%0A%3Cli%3EIn+2021%2C+franchise+employment+increased+by+8.8%25%26mdash%3Badding+over+46%2C000+jobs+per+month.+Franchise+employment+is+forecasted+to+grow+at+a+slightly+lower+rate+of+3.1%25+to+a+total+of+8.5+million+jobs%2C+back+to+the+pre-pandemic+level%2C+a+net+gain+of+up+to+300%2C000+jobs.%26nbsp%3B%3C%2Fli%3E%0D%0A%3Cli%3EFranchised+establishments+in+the+Personal+Services+sector+are+predicted+to+lead+the+growth+in+2022%2C+followed+by+Commercial+%26+Residential+Services.%3C%2Fli%3E%0D%0A%3C%2Ful%3E%0D%0A%3Cp%3EOn+the+state+and+regional+level%2C+the+report+shows+that+states+have+experienced+different+rates+of+economic+recovery+due+to+disparities+in+business+climates%2C+migration+trends%2C+and+changes+in+consumer+preferences.+On+the+state+level%2C+it+is+predicted+that%3A%26nbsp%3B%3C%2Fp%3E%0D%0A%3Cul%3E%0D%0A%3Cli%3EStates+in+the+West+and+South+will+experience+the+fastest+upward+trajectory+of+franchise+business+growth+in+2022.%3C%2Fli%3E%0D%0A%3Cli%3EThe+Southeast+region%2C+which+has+the+largest+franchise+concentration+in+the+U.S.%2C+will+have+an+estimated+231%2C500+total+establishments+by+2022%2C+employing+2.6+million+workers+and+contributing+%24235.9+billion+in+output+to+the+U.S.+economy.%3C%2Fli%3E%0D%0A%3Cli%3EThe+top+10+states+for+franchise+growth+in+2022+are+projected+to+be%3A+Texas%2C+Florida%2C+Arizona%2C+South+Carolina%2C+Idaho%2C+Tennessee%2C+North+Carolina%2C+Utah%2C+Montana%2C+and+Nebraska.%3C%2Fli%3E%0D%0A%3C%2Ful%3E%0D%0A%3Cp%3EThe+full+report+is+available%26nbsp%3B%3Ca+href%3D%22https%3A%2F%2Fwww.franchise.org%2Ffranchise-information%2Ffranchise-business-outlook%2F2022franchising-economic-outlook%22+target%3D%22_blank%22+rel%3D%22noopener%22%3Ehere.%3C%2Fa%3E%3C%2Fp%3E
Published: February 23rd, 2022

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