Arizona Set to Become the Leading State for Franchise Business Expansion by 2025
In recent research, the International Franchise Association (IFA) forecasts a remarkable surge in the franchise sector within Arizona, expecting the addition of 1,374 new franchise businesses in 2025. This expansion is projected to create approximately 13,441 new jobs, thereby directly impacting the state's employment landscape. With these developments, the franchise sector in Arizona is anticipated to contribute a staggering $22.6 billion to the state's economy in the same year.
The meticulous study conducted by FRANdata and released by the IFA outlines the underlying factors propelling Arizona's franchise growth. The state is set to witness a growth rate of 7.2%, culminating in a total of 20,434 franchise businesses. This growth is credited to favorable population dynamics, business-friendly policies, and sectoral advancements, making Arizona the fourth-best state for franchise expansion nationwide in 2025.
Reflecting on the resilience of the franchise model, Matt Haller, the President and CEO of IFA, stated, "The resilience of the franchise business model not only helped the sector survive the uncertainty of recent years, but thrive in the face of challenging economic conditions." The report highlights a revitalized atmosphere of optimism and confidence in the franchise landscape, marking 2025 as a pivotal year for franchise investments and growth. Franchising, as a major driver of economic mobility, continues to bolster business ownership opportunities.
Notably, the national outlook is equally promising, with the IFA projecting a 2.4% increase in franchises across the U.S., which would add around 210,000 jobs, lifting total franchising employment to exceed 9 million jobs in 2025. The overall economic output from franchising is estimated to soar beyond $936.4 billion, showcasing a 4.4% growth from previous years. This amplification echoes across various sectors, with personal services and retail food industries, in particular, forecasted to emerge as the fastest-growing segments, showcasing respective increases of 4.3% and 3.5%.
The Southeastern and Southwestern regions are predicted to outperform other U.S. markets with franchise growth rates at 6.2% and 8.5%, respectively. This trend underscores the pronounced advantages that lower living costs and favorable economic policies provide for entrepreneurs and investors alike. The top ten states for franchise growth, as identified in the report, are Georgia, North Carolina, Virginia, Arizona, South Carolina, Pennsylvania, Tennessee, Florida, Colorado, and Maryland, showcasing a diverse landscape of growth potential.
Darrell Johnson, CEO of FRANdata, commented on the continued resilience of franchising, noting, "Once again, franchising continues to exceed economic expectations. Even amid concerns about labor requirements, franchising outpaced our projections last year." The promising projections for 2025 suggest a harmonious blend of reducing inflation and declining interest rates, establishing a robust economic foresight for franchising in various sectors.
As franchise systems continue to flourish, Arizona stands out as a beacon of opportunity. The state’s favorable business environment is designed to attract aspiring franchisees and entrepreneurs, paving the way for ongoing economic advancements. The comprehensive 2025 Franchising Economic Outlook, available via IFA, extends insights and forecasts across all 50 states and Washington D.C., promising a definitive roadmap for the franchise sector’s phenomenal growth trajectory. The economic implications of this growth are vast, fueling job creation and enhancing community development within the regions it serves.
The meticulous study conducted by FRANdata and released by the IFA outlines the underlying factors propelling Arizona's franchise growth. The state is set to witness a growth rate of 7.2%, culminating in a total of 20,434 franchise businesses. This growth is credited to favorable population dynamics, business-friendly policies, and sectoral advancements, making Arizona the fourth-best state for franchise expansion nationwide in 2025.
Reflecting on the resilience of the franchise model, Matt Haller, the President and CEO of IFA, stated, "The resilience of the franchise business model not only helped the sector survive the uncertainty of recent years, but thrive in the face of challenging economic conditions." The report highlights a revitalized atmosphere of optimism and confidence in the franchise landscape, marking 2025 as a pivotal year for franchise investments and growth. Franchising, as a major driver of economic mobility, continues to bolster business ownership opportunities.
Notably, the national outlook is equally promising, with the IFA projecting a 2.4% increase in franchises across the U.S., which would add around 210,000 jobs, lifting total franchising employment to exceed 9 million jobs in 2025. The overall economic output from franchising is estimated to soar beyond $936.4 billion, showcasing a 4.4% growth from previous years. This amplification echoes across various sectors, with personal services and retail food industries, in particular, forecasted to emerge as the fastest-growing segments, showcasing respective increases of 4.3% and 3.5%.
The Southeastern and Southwestern regions are predicted to outperform other U.S. markets with franchise growth rates at 6.2% and 8.5%, respectively. This trend underscores the pronounced advantages that lower living costs and favorable economic policies provide for entrepreneurs and investors alike. The top ten states for franchise growth, as identified in the report, are Georgia, North Carolina, Virginia, Arizona, South Carolina, Pennsylvania, Tennessee, Florida, Colorado, and Maryland, showcasing a diverse landscape of growth potential.
Darrell Johnson, CEO of FRANdata, commented on the continued resilience of franchising, noting, "Once again, franchising continues to exceed economic expectations. Even amid concerns about labor requirements, franchising outpaced our projections last year." The promising projections for 2025 suggest a harmonious blend of reducing inflation and declining interest rates, establishing a robust economic foresight for franchising in various sectors.
As franchise systems continue to flourish, Arizona stands out as a beacon of opportunity. The state’s favorable business environment is designed to attract aspiring franchisees and entrepreneurs, paving the way for ongoing economic advancements. The comprehensive 2025 Franchising Economic Outlook, available via IFA, extends insights and forecasts across all 50 states and Washington D.C., promising a definitive roadmap for the franchise sector’s phenomenal growth trajectory. The economic implications of this growth are vast, fueling job creation and enhancing community development within the regions it serves.
Topics Business Technology）
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