This year’s report shows the strength and resilience of franchise business model. Following a year of headwinds, franchised businesses are poised for growth.

 Key findings from the 2026 Franchising Economic Outlook include:

• Franchise output is expected to rise from $907.3 billion to $921.4 billion – an increase of 1.6%.
• The number of franchise establishments will grow from 832,521to 845,000 units – an increase of 1.5%.
• Franchise employment is anticipated to increase by more than 150,000 jobs (1.8%) to nearly 8.9 million jobs.
• Total franchise GDP is estimated to grow by 1.8% from $549.9 to $558.4 billion.
• 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.
• Child services and commercial and residential services are expected to be the fastest growing industries