Franchise-based businesses in Florida have an economic output growth of 5.3%.
Florida is a fine state for franchisors and franchisees.
Franchise-based businesses in the state rank No. 2 nationally in economic output growth, at 5.3%, behind only Texas, at 7.1%, according to new report from the International Franchise Association. Florida’s franchisee business produced an economic output of $63.5 billion in fiscal 2020, up from $60.2 billion in 2019. Texas-based franchises had an output of $74.6 billion, with a growth rate of 7.1%.
Florida is also tied, with Arkansas, for No. 3 in total franchise employment growth year-over-year at 3.8%, the report shows. The state had 678,789 employees in franchise business in 2020, up from 654,222 in 2019. Texas, at 5.3% and Colorado, at 3.9%, are ahead of Florida in franchise employment.
Overall, Florida has 59,017 franchise establishments in 2020, up 2.5% from 57,573 in 2019, the report shows. The total franchise payroll is $26.4 billion in fiscal 2020, up 7.3% from $24.6 billion in 2019.
The IFA Economic Outlook Report looks at growth trends from 2016-2019, as well as future projections. "Without a doubt, franchising plays a major role in our economy, and we forecast that most franchise businesses will sustain robust growth in 2020," says Darrell Johnson, CEO of FRANdata, which compiled the data for the trade group, in a statement. The IFA bills itself as the oldest and largest organization representing franchising worldwide.
Other nuggets from the report include:
• The franchise industry is forecast to add 232,000 jobs in 2020, growing total employees to 8.67 million.
• The number of franchised businesses in the U.S. is forecast to grow by 1.5% in 2020, to a total of 785,316 establishments.
• Overall GDP contribution by the franchise industry is forecast to grow by 4.6%, to $494.96 billion.
• Franchise business development will continue to increase in the South and West due to growing populations, state-level economic policies and favorable business tax climates.
• The personal services sector of franchising is anticipated to expand the quickest, at a rate of 4.7% between 2019 and 2020.