Despite regional differences, the U.S. franchising sector as a whole is projected to stay strong in 2022 as the labor industry strengthens and customer spending stays solid, according to a new national barometer.
In its newest yearly economic outlook report introduced past week, the Washington, D.C.-based Global Franchise Association projected that the sector would contribute $501 billion to the U.S. economy in 2022. That signifies a 5.7% increase over the $474.2 billion estimated for 2021.
The report found that the sector will conclusion the year with much more than 792,000 establishments nationwide, a 2.2% maximize above 2021, and include 3.1% positions to deliver the total to 8.5 million.
“At just about every level, regional franchise companies give options for economic and job improvement,” said IFA president and CEO Matthew Haller. “As we continue on to navigate pandemic-connected problems, policymakers should really resist the urge to undertake a hard posture from the local enterprises primary our financial recovery,”
Maine features 272 franchise manufacturers led by Dunkin, Subway and McDonalds, and 864 franchisees, in accordance to figures just lately compiled for Mainebiz by FRANdata, a industry investigation corporation based in Arlington, Va. Amongst Maine-primarily based brand names, South Portland-primarily based Aroma Joe’s has 30 locations in Maine with nine additional in development.
How areas stack up
With 121,533 franchise establishments and output of $143.7 billion believed for 2022, the northeastern portion of the country trails most of its regional friends, while the Southeast is expected to have the major franchise concentration this year, the Worldwide Franchise Association observed in its latest report.
The group also expects states in the West and South to experience the fastest upward trajectory of franchise business advancement in 2022.
Franchises in all other states are also most most likely likely to ramp up in 2022, although at a slightly lower amount, serving to the financial system get better from the pandemic-induced downturn, according to the report.
Maine did not rank among the prime 10 states for franchise growth in 2022 these are projected to be Texas, Florida, Arizona, South Carolina, Idaho, Tennessee, North Carolina, Montana, Nebraska and Nevada.
Requested about the outcome of in-migration into Maine during the pandemic on the franchising sector, Jeff Hanscom, the Worldwide Franchising Association’s vice president of condition and community govt relations, advised Mainebiz that “an improved pool of franchisees would on its encounter undoubtedly look to drive ongoing development in the area.”
Come across the entire report listed here.