FRANdata In The Press

In 2022, the industry saw a huge jump in the number of brands entering franchising to 414, with 2023 looking to finish at a similarly high number. Before Covid, the industry averaged some 322 new brands a year. Since then, there has been an average of 383 new brands. That is a growth of 19% in the number of new brands per year.

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.

The business services industry is poised for significant growth as outsourcing of human resources, marketing, accounting and payroll services, etc. has become more prevalent over the years.