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.