The franchise sector could create 150,000 jobs this year.
A new report from the International Franchise Association (IFA) is projecting franchise industry growth in 2026.
The latest Franchising Economic Outlook indicates that there will be more than 12,000 new franchised businesses this year with economic output rising by 1.6% and surpassing $920 billion. Additionally, nearly 8.9 million jobs are expected to be created by franchise businesses, representing 1.8% growth and rising by 150,000 positions, according to the IFA.
“The resilience of franchising has enabled our model to adapt, endure and thrive in the face of challenging macroeconomic headwinds,” said Matt Haller, IFA president and CEO. “After a year of recalibration, franchising is better positioned to navigate an improving economic environment than independent businesses due to tax certainty, lower interest rates and investments in AI that will propel brand growth, franchisee unit level economics and wage growth for the franchise workforce.”
Another projection includes total franchise GDP growing by 1.8% from $549.9 billion to $558.4 billion.
While the Southeast and Southwest are forecast to maintain their positions as the top regions for franchise expansion, moving ahead by 1.7% and 2.5%, the top 10 fastest-growing states for franchising in 2026 are: Texas, Florida, Georgia, Arizona, North Carolina, Colorado, Michigan, Utah, Ohio, and Maryland.
The fast growing segments of the industry are expected to be child services along with commercial and residential services with growth projected at 3.2%.
The Franchising Economic Outlook report was conducted by FranData, a research and analytical firm. The full report is available here.
“After a challenging operating environment in 2025, the economic outlook for franchising remains strong,” said Darrell Johnson, CEO of FRANdata. While persistent macroeconomic factors remain, the economic outlook for franchising in 2026 is poised for continued growth and expansion across various sectors.”
The Franchising Economic Outlook follows last month’s Value of Franchising study, conducted by Oxford Economics. which highlights how franchised businesses provide better benefits, stronger wage growth, greater business ownership opportunities, and more generous community contributions than non-franchise businesses.
Based in Washington, D.C., the IFA says it works through its government relations and public policy, media relations, and educational programs to protect, enhance and promote franchising and the 832,000 franchise establishments that support nearly 8.8 million direct jobs, $907.3 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.
