While it may feel like the pandemic has stopped so much in our lives, it doesn’t appear to have slowed down the growth of new businesses. According to the U.S. Census Bureau, about 50% more new businesses started in the U.S. in 2021 than in any year in history. The pandemic has spurred the entrepreneurial-minded, meaning growth for many new and existing franchise brands is on an upswing.
But that doesn’t mean that all franchises will be equally successful. One thing that the pandemic made clear, and which continues to hold sway, is that franchises that could lean into the call for things like delivery food service, boutique fitness, and service franchise offerings have experienced much greater success over the past several years.
Any economic damage that franchises may have incurred due to COVID-19 is anticipated to have been erased thanks to the projected 26,000-plus franchise locations that opened in 2021, which added nearly 800,000 new jobs and contributed $477 billion to the U.S. gross domestic product (GDP).
The International Franchise Association (IFA) expected franchising’s overall contribution to the economy to have grown by 7% in 2021, which would return it to pre-pandemic levels of economic output.
After meeting and working with Seth to vet and select a franchise concept, I'm so grateful that he was our guide throughout the journey. -Jennifer Robinson, Franchise Owner
The Outlook for 2022
As 2022 is now officially underway, it’s essential to understand the vital role of franchising in America’s economy. The IFA Foundation reports that franchise businesses account for more than 5% of private-sector GDP and more than 8% of private-sector jobs. Franchise businesses in the U.S. contribute more than $674 billion in direct economic output and 7.6 million direct jobs. Finally, one out of every 12 Americans working in the private sector is employed by a franchise business or has a job because of franchising.
The most recent ADP National Franchise Report stated that U.S. private-sector franchise jobs increased by more than 52,000 franchise jobs in August 2021. Sectors that experienced growth included restaurants, auto parts and dealers, accommodations, and real estate. Food retailers and business service franchises both showed declines.
Let Frannexus Be Your Guide!
If you are considering investing in a franchise, don’t take the chance of choosing the wrong one and not achieving your goals. Learn from the experience of others in the franchise field, like a franchise coach, to have the greatest likelihood not just of succeeding but exceeding what you think is possible. At Frannexus, we have the expertise, knowledge, and experience to help you achieve your financial and personal goals. The right match is waiting for you, and Frannexus is the matchmaker to find your franchise soulmate.