Franchise businesses represent hundreds of industries that touch people’s daily lives. From food and fitness to childcare and home services, they are part of everyday life across the country. Franchises represent more than 8 million jobs and contribute over $900 billion to the economy.

The 2026 Franchising Economic Outlook is the International Franchise Association’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-by-state outlook and industry forecast.

Key findings from the 2026 Franchising Economic Outlook include:

Franchise employment is anticipated to increase by more than 150,000 jobs (1.8%) to nearly 8.9 million jobs.
Fueled by business-friendly policies, lower cost of living, and population growth, the Southeast and Southwest regions are expected to maintain their positions as the top regions for franchised business expansion in the United States, growing at rates of 1.7% and 2.5%, respectively.
The top 10 fastest-growing states for franchising in 2026 are: Texas, Florida, Georgia, Arizona, North Carolina, Colorado, Michigan, Utah, Ohio, and Maryland.
Michigan, Ohio, and Utah have emerged as new entrants among the top 10 states due to their comparative affordability, expansion potential, and meaningful opportunities for market leadership.

Latest Trends According to 2026 Outlooks

Child services and commercial and residential services are expected to be the fastest growing industries at a year‑over‑year rate of 3.2%. Other notable trends among industries include:
For the first time since the pandemic, full-service restaurants are expected to outpace quick service restaurants (QSR) in output growth.
Franchise establishments play an increasingly important role in creating labor demand for young people entering the workforce.
In the lodging industry, high-income consumers continuing to spend on personalized and “experiential luxury travel,” while value consumers are expected to scale back their spending.
Since the pandemic, rising awareness of preventive healthcare has propelled the sector to become the third-largest franchised industry.

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