According to new study, North Carolina will add 1,397 new local franchise businesses in 2025, 14,636 jobs; Franchise sector will contribute $35.5 billion to state's economy in 2025 bringing business ownership opportunities, economic growth, and job creation
WASHINGTON, Feb. 5, 2025 -- The International Franchise Association (IFA) today released its annual Franchising Economic Outlook showing that North Carolina is expected to add 1,397 new franchise businesses in 2025. Franchising in the state is predicted to provide 342,660 direct jobs and contribute $35.5 billion to the state's economy, making North Carolina the No. 2 best state in the nation for franchise growth this year due to population growth trends, the region's business-friendly policies, and industry growth.
The full report, compiled by FRANdata, is available here.
"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," said Matt Haller, IFA President and CEO. "A more favorable economic and regulatory climate have created new optimism and confidence for the year ahead. For those considering a franchise investment or IFA members growing their brands, 2025 is poised to be a banner year. Franchising in North Carolina remains a major driver of growth and upward economic mobility."
In 2025, franchising in North Carolina is expected to:
- Grow 4.50%, totaling 32,395 businesses
- Add 14,636 new jobs, totaling 342,660 franchise employees
- Provide $35.5 in economic output
Nationally, the report forecasts that franchises will grow 2.4% in 2025, a faster rate than for the broader U.S. economy, due to stabilizing labor market, easing interest rates, increasing optimism expected to propel franchise growth. On the national level, key findings from the 2025 Franchising Economic Outlook include:
- The number of franchise establishments will increase by more than 20,000 units, or 2.5%, to 851,000 total units.
- In 2025, franchising is expected to add approximately 210,000 jobs, growing at a rate of 2.4%, bringing franchising employment to more than 9 million jobs.
- Franchising employment grew by 2.2% in 2024, adding more than 189,000 jobs.
- Total franchise output is projected to exceed $936.4 billion in 2025, increasing by 4.4%, from $896.9 billion in 2024. Franchise GDP will increase at a pace of 5% to $578 billion.
- Franchising will grow faster than the U.S. economy, which is projected to increase by 1.9% in 2025 according to the Congressional Budget Office.
- Personal services and retail food, products, and services are expected to be the fastest-growing industries in 2025, increasing by 4.3% and 3.5%, respectively.
- Fueled by business-friendly policies and a lower cost of living, growth in the Southeast and Southwest is forecast to outpace the rest of the U.S. franchise market in 2025, with output growing by 6.2% and 8.5%, respectively.
- The top 10 fastest-growing states for franchise growth are: Georgia, North Carolina, Virginia, Arizona, South Carolina, Pennsylvania, Tennessee, Florida, Colorado, and Maryland.
"Once again, franchising continues to exceed economic expectations," said Darrell Johnson, CEO of FRANdata. "Even amid concerns about labor requirements, franchising outpaced our projections last year. With inflation easing and interest rates declining, the economic outlook for franchising in 2025 is strong, with favorable conditions and supportive policies paving the way for continued growth and expansion across various sectors."
Conducted by FRANdata, an industry-leading research and analytical firm, the 2025 Franchising Economic Outlook is IFA's annual study detailing the franchise sector's performance for the past year and projected economic outlook for the year ahead, as well as an in-depth state outlook for all 50 states and Washington, D.C.
About the International Franchise Association:
Celebrating over 60 years of excellence, education, and advocacy, the International Franchise Association (IFA) is the world's oldest and largest organization representing franchising worldwide. IFA works through its government relations and public policy, media relations, and educational programs to protect, enhance and promote franchising and the approximately 830,000 franchise establishments that support nearly 8.8 million direct jobs, $896.9 billion of economic output for the U.S. economy, and almost 3 percent of the Gross Domestic Product (GDP). IFA members include franchise companies in over 300 different business format categories, individual franchisees, and companies that support the industry in marketing, law, technology, and business development.
CONTACT: Katherine Knight Patterson
kpatterson@franchise.org
(202) 662-0783
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