Utah will add 324 new franchised businesses in 2023, creating 4,540 new jobs, according to estimates published by the International Franchise Association (IFA) in its 2023 Franchising Economic Outlook report. “These local businesses continue to deliver jobs and business ownership opportunities, despite economic uncertainty across all industries and in daily life,” the association said.
“Even with today’s economic headwinds, franchises in Utah continue to grow, provide career-building jobs for their employees, and give back to their local communities,” said IFA president and CEO Matt Haller. “After an historic year of growth during the post-pandemic recovery, franchising is predicted to exceed pre-pandemic growth levels — showing the power of the business model and its distinct advantages for prospective business owners.”
The report is IFA’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 outlook for all 50 states and Washington, D.C.
The study found that in Utah, franchise establishments will increase at a rate of 3.6 percent to a total of 9,223 units. At the end of the year, franchises in Utah are expected to employ 99,541. The economic impact of Utah franchises is expected to continue into 2023 by 6 percent to $9.8 billion.
Nationwide, the overall number of franchise establishments will increase by almost 15,000 units in 2023, or 1.9 percent to 805,000 units. Franchising will add approximately 254,000 jobs in 2023, growing at a 3 percent rate and reaching 8.7 million.
On the state and regional level, the report shows that states have experienced different rates of franchise business growth due to disparities in business climates, migration trends, the labor market and major industry investments. On the state level, it is predicted that states in the Southeast and Southwest will experience the fastest upward trajectory of franchise business growth in 2023. The top 10 states for franchise growth in 2023 are projected to be Texas, Illinois, Florida, Georgia, Tennessee, North Carolina, South Carolina, Arizona, Colorado and Indiana.