If you’ve been watching the economy lately, you’ve probably noticed a theme: things feel a bit… muted. Consumers are cautious. Certain industries are soft. And yet — there’s one area that continues to perform above expectations: → Franchising.
Over the last five years, the franchise sector has grown 7.3%, compared to the U.S. economy’s 3.6%.
That’s not a small gap — that’s momentum.
At the CREATE conference in Nashville, Matt Haller, president & CEO of the International Franchise Association (IFA), shared powerful insights into why franchising continues to hold strong—and what future franchise owners should be paying attention to.
As someone who has owned multiple brands over the past 20+ years — and now helps people find the right franchise fit every single day — I want to break this down for you in a practical, non-intimidating way.
Where Franchise Growth Is Happening Most
Some regions are exploding with opportunity thanks to:
- Business-friendly laws
- Strong population growth
- Lower regulatory hurdles for brands
The top growth states right now:
Georgia, North Carolina, Virginia, Arizona, South Carolina, Pennsylvania, Tennessee, Florida, Colorado, and Maryland.
If you live in one of these states — or are open to relocating — you’re sitting in the middle of a franchise hotbed.
Even with the growth, Haller expects things to flatten slightly in the next year, which may actually be a good thing.
The wild post-COVID expansion wasn’t sustainable forever. A more stable pace creates a healthier environment for new and expanding owners.
The Rise of Multi-Unit & Multi-Brand Owners (MUMBOs)
This is one of the most important trends you should know.
More than 6,000 franchise businesses now fall into the “multi-unit, multi-brand owner” category.
Why? Because single-unit operators are realizing something I’ve lived myself:
- Scale creates stability.
- Scale creates better margins.
- Scale creates long-term freedom.
Brands also want more sophisticated owners who can diversify, grow, and operate at a higher level.
If you’re planning to start with one unit, that’s totally fine — just know that the path to wealth in franchising often involves adding additional units over time.
What Franchisors Are Worried About Right Now?
Even though franchising is doing well overall, franchisors are feeling pressure in a few places:
- Softer sales + high inflation – Consumers are being more selective with where they spend money.
This is why I always tell clients not to base expectations on the top-performing location in the FDD — instead focus on median performance. - Shrinking franchisor profit margins
→ 2021: 20%
→ 2022: 16%
→ 2023: 12%
→ 2024: 15%
With another dip expected, brands may temporarily offer less support.
That doesn’t mean franchising is unsafe — it means choosing the right brand matters more than ever.
- Many franchisees don’t read the FDD – This part shocked even me.
→ 70% of franchise buyers don’t read the FDD fully.
It’s a complex document — I get it. But it outlines:
- Your obligations
- The franchisor’s obligations
- The financial expectations
- The rules of the relationship
Please don’t skip this step. This is why working with a consultant matters —
my job is to help you make sense of all of it.
The Most Important Insight of All
Matt Haller said something I wish every future owner could hear:
“Franchisors should not be making money on franchise sales.
They should be making money because their franchisees are making money.”
This is the heart of healthy franchising.
A strong franchise brand:
✔ Makes sure franchisees are profitable
✔ Drives unit-level economics
✔ Expands sustainably
✔ Chooses franchisees with care
✔ Supports them long after the sale
And that’s exactly what we help you evaluate — because not all brands operate at this level.
Franchising is still one of the most accessible paths to business ownership —
even in a shaky economy — if you choose the right brand and enter with realistic expectations.
If you want help navigating:
- Which brands are actually thriving
- What the financials really look like
- How to compare opportunities safely
- Whether multi-unit makes sense for you
- How to interpret the FDD
I’m here to make this process easier, safer, and a whole lot less overwhelming.
We’ll walk through your goals, capital comfort, and whether franchising even makes sense for you right now.