FRANdata In The Press

The International Franchise Association recently released the report from its 2024 Annual Franchisee Survey. The survey, conducted by FRANdata, provides a detailed analysis of the economic conditions on franchised businesses and surveyed over 1,400 franchisees nationwide.

The landscape of franchise financing is shifting. New lenders are entering the market, and the characteristics of the average franchisee are changing. The Small Business Administration (SBA) continues to make changes, and the Federal Reserve has been responding to a unique economy.

The past year was an adjustment period for lenders, as they’ve had to vet the eligibility of franchise brands without the help of the U.S. Small Business Administration’s Franchise Directory.

The lodging industry’s substantial growth in 2023 reflects its resilient rebound from the challenges posed by the pandemic in 2020 and 2021.

As the housing sector witnessed unprecedented growth during the pandemic, the franchised home services industry emerged as a pivotal player, catering to the diverse needs of homeowners.

In 2022, the industry saw a huge jump in the number of brands entering franchising to 414 brands with 2023 looking to finish at a similarly high number.

One of the trends of the past few years has been growth through acquisition. Discerning the right acquisition target is a pivotal step for PE groups, platform companies, and multi-unit franchisees eyeing expansion and diversification.

With more than 420,000 franchised units owned by 234,000 franchisees in the system, multi-unit operators (MUOs) are shaping franchising’s future. Notably, MUOs in the U.S. control more than 50% of all franchised units, marking a substantial shift in the franchising paradigm.

The health and wellness market continues to experience robust growth.