IFA Releases 2026 Franchising Economic Outlook Report, Predicting Over 12,000 New Franchised Businesses This Year

The International Franchise Association has released its annual Franchising Economic Outlook report for 2026, painting the picture for a positive year of growth after notable economic turbulence in 2025.

“The resilience of franchising has enabled our model to adapt, endure and thrive in the face of challenging macroeconomic headwinds,” Matt Haller, IFA president and CEO, said in a release. "After a year of recalibration, franchising is better positioned to navigate an improving economic environment than independent businesses due to tax certainty, lower interest rates and investments in AI that will propel brand growth, franchisee unit-level economics and wage growth for the franchise workforce."

The report features key industry projections for the year, including:

• The addition of over 12,000 new franchised businesses
• The addition of over 150,000 jobs — meaning the industry will represent nearly 8.9 million jobs
• An increase in total franchise GDP from $549.9 to $558.4 billion
• An increase in multi-unit ownership as current single-unit franchisees pursue scale

In addition to the strength of the industry as a whole, the organization highlighted segment-specific trends. 

• This year, child services and commercial and residential services are recognized as top performers, expected to achieve a 3.2% year-over-year growth rate.
• A focus on experiential dining, rather than value alone, may drive full-service restaurants to outpace quick-service brands in output growth.
• Preventive health care has risen to be the third-largest franchised industry, and it represents strong opportunities as consumer awareness surrounding preventive health care persists.

In terms of growth markets, Texas continues to lead the country as the fastest-growing state for franchising, followed by Florida, Georgia, Arizona and North Carolina. Michigan, Ohio and Utah have joined the top 10 this year thanks to their relative affordability and the potential they offer for market leadership and long-term growth.

The outlook for 2026 is upbeat, and the drivers behind it look different than they did a few years ago. More brands are putting AI and automation to work in day-to-day operations, which helps franchisees move faster on basics like scheduling and inventory and stay tighter on margins.

The growth in multi-unit ownership points to a shift in how people are approaching franchising. More operators are treating it like a scalable investment, focused on building an asset, not just buying themselves a job.

As the year ramps up, IFA’s data suggests growth in 2026 will be driven by those leveraging the scale of the franchise model, embracing a tech-forward approach to business ownership, and staying agile in an evolving business landscape.

Find the full 2026 Franchising Economic Outlook report here.