1851

Location, location, location. Understanding regional financial patterns and potential economic outlooks can be crucial tools for franchise operators to optimize franchise growth strategies and anticipate franchisee success. This piece aims to spotlight the top 25 states for franchising, as deduced from&nbsp;<a href="https://www.richstatespoorstates.org/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-25-best-state-economies-for-franchising-in-2023-2723128" target="_blank" rel="nofollow">ALEC-Laffer's 16th annual "Rich States, Poor States" Economic Competitiveness Index</a>.Two crucial rankings are provided in ALEC-Laffer's report — Economic Performance and Economic Outlook. The former looks at a state's performance over the past decade, while the latter projects a forecast based on 15 current state-policy factors. Although a lower outlook index rank doesn't necessarily deter franchise expansion, it does indicate a need for more strategic expansion planning.Generally speaking, states that spend less (especially on income transfer programs) and states that tax less (particularly on productive activities such as working or investing in business) experience higher growth rates than states that tax and spend more.“This amazing repository of data on the competition among the states is the ultimate guide to economic growth and prosperity,” said&nbsp;<a href="https://alec.org/person/dr-arthur-b-laffer/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-25-best-state-economies-for-franchising-in-2023-2723128" target="_blank" rel="nofollow">Dr. Arthur Laffer</a>. “‘Rich States, Poor States’ tells a clear story: states with low taxes attract more business investment and more workers. People move to where they have economic opportunities.”For example, this report shows that North Carolina has maintained its second position due to its historic 2013 tax reform while Virginia has impressively climbed from the 24th to 18th spot due to significant tax reductions and rebates enacted during its 2022 legislative session.Utah holds the prime position in economic outlook for the 16th consecutive year. Its consistent position can be attributed to a flat personal income tax rate, pension reform and innovative property tax reform strategies.Here are the top 25 states for franchising based on the Economic Competitiveness Index:<ol><li><a href="https://1851franchise.com/what-utahs-economic-outlook-means-for-franchisors-2722857">Utah</a></li><li><a href="https://1851franchise.com/what-north-carolinas-economic-outlook-means-for-franchisors-2722851">North Carolina</a></li><li><a href="https://1851franchise.com/what-arizonas-economic-outlook-means-for-franchisors-2722880">Arizona</a></li><li><a href="https://1851franchise.com/what-idahos-economic-outlook-means-for-franchisors-2722858">Idaho</a></li><li><a href="https://1851franchise.com/what-oklahomas-economic-outlook-means-for-franchisors-2722886">Oklahoma</a></li><li><a href="https://1851franchise.com/what-wyomings-economic-outlook-means-for-franchisors-2722861">Wyoming</a></li><li><a href="https://1851franchise.com/what-indiana-s-economic-outlook-means-for-franchisors-2722862">Indiana</a></li><li><a href="https://1851franchise.com/what-north-dakotas-economic-outlook-means-for-franchisors-2722863">North Dakota</a></li><li><a href="https://1851franchise.com/what-floridas-economic-outlook-means-for-franchisors-2722910">Florida</a></li><li><a href="https://1851franchise.com/what-nevadas-economic-outlook-means-for-franchisors-2722889">Nevada</a></li><li><a href="https://1851franchise.com/what-tennessees-economic-outlook-means-for-franchisors-2722926">Tennessee</a></li><li><a href="https://1851franchise.com/what-georgias-economic-outlook-means-for-franchisors-2722864">Georgia</a></li><li><a href="https://1851franchise.com/what-texas-economic-outlook-means-for-franchisors-2722957">Texas</a></li><li><a href="https://1851franchise.com/what-south-dakotas-economic-outlook-means-for-franchisors-2722923">South Dakota</a></li><li><a href="https://1851franchise.com/what-arkansas-economic-outlook-means-for-franchisors-2722915">Arkansas</a></li><li><a href="https://1851franchise.com/what-michigan-s-economic-outlook-means-for-franchisors-2722976">Michigan</a></li><li><a href="https://1851franchise.com/what-wisconsins-economic-outlook-means-for-franchisors-2722935">Wisconsin</a></li><li><a href="https://1851franchise.com/what-virginias-economic-outlook-means-for-franchisors-2722961">Virginia</a></li><li><a href="https://1851franchise.com/what-new-hampshires-economic-outlook-means-for-franchisors-2722934">New Hampshire</a></li><li><a href="https://1851franchise.com/what-ohios-economic-outlook-means-for-franchisors-2722965">Ohio</a></li><li><a href="https://1851franchise.com/what-south-carolinas-economic-outlook-means-for-franchisors-2722940">South Carolina</a></li><li><a href="https://1851franchise.com/what-mississippis-economic-outlook-means-for-franchisors-2722919">Mississippi</a></li><li><a href="https://1851franchise.com/what-alaskas-economic-outlook-means-for-franchisors-2722981">Alaska</a></li><li><a href="https://1851franchise.com/what-alabamas-economic-outlook-means-for-franchisors-2722933">Alabama</a></li><li><a href="https://1851franchise.com/what-colorados-economic-outlook-means-for-franchisors-2722982">Colorado</a></li></ol>Despite individual state rankings, prospective entrepreneurs should not be dissuaded from investing in a franchise. If the market conditions are suitable and a brand addresses a need in that market, franchisees can still expand and scale their operations. However, aspiring business owners in states with a lower outlook should consider brands with a lower entry cost.In conclusion, the findings of the ALEC-Laffer’s 16th annual “Rich States, Poor States” Economic Competitiveness Index offer invaluable insights into the financial landscape of the United States, shaping strategic plans for franchise owners and potential investors alike.

The 25 Best State Economies for Franchising in 2023

1851 Franchise

From Utah to North Carolina to Arizona to Idaho, here are some of the states that have the strongest economies capable of nurturing franchise success in the next decade.


the-25-best-state-economies-for-franchising-in-2023

Beansquad

Franchise Financial Health Check: BeanSquad’s Diagnostic Approach to Bookkeeping

franchise-financial-health-check-beansquads-diagnostic-approach-to-bookkeeping

Paris Baguette

Photo of cross section of Paris Baguette croissant

Is the Paris Baguette Franchise Worth the Investment? Understanding the Franchise Fee and ROI

paris-baguette-franchise-cost-roi

Photo of Paris Baguette croissants and cup of hot coffee

Paris Baguette Ranked No. 112 in 2025 Technomic Top 500 Chain Restaurants Report, Climbing Over 20 Spots From Prior Year

paris-baguette-technomic-top-500-ranking-2025

Paris Baguette Canada

image of paris baguette cake and franchise decorations

Why Canadian Consumers Are Falling in Love With French-Inspired Bakery Cafés

why-canadians-love-paris-baguette

Layne's Chicken Fingers

Design with photos of six Layne's Chicken Fingers franchisees and the Layne's logo

Why Franchisees Love Layne’s: Support, Culture and Growth

why-franchise-with-laynes

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Caribou Coffee Names Scott Kennedy CEO, Eyes Continued Growth

caribou-coffee-names-scott-kennedy-ceo-eyes-continued-growth

McDonald’s Launches New Extra Value Meals as Consumer Demand for Value Continues to Climb

mcdonalds-launches-extra-value-meals

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

Keurig Dr Pepper Splits in $18 Billion JDE Peet’s Deal, Creating Global Coffee Giant

keurig-dr-pepper-splits-in-18-billion-jde-peets-deal-creating-global-coffee-giant

McDonald’s Rolls Out Major Value Push To Win Back Customers Amid Inflation

mcdonalds-rolls-out-major-value-push-to-win-back-customers-amid-inflation

Hardee’s Lawsuit Highlights the Risk of Going Off-Model in Franchising

hardees-franchise-lawsuit-paradigm-investment-group

Wendy's CEO Kirk Tanner Steps Down - Breaking News - 1851 Franchise

Wendy’s CEO Kirk Tanner Steps Down Amid Challenges, Leaving Franchisees Facing Uncertainty

wendys-ceo-transition-kirk-tanner-franchisee-uncertainty

Extraordinary Brands Acquires CycleBar and Rumble, Shaking Up Boutique Fitness Franchising

extraordinary-brands-cyclebar-rumble-boxing-acquisition

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise Built on Heart and Community

paris-baguette-franchise-rockaway-new-jersey-vishal-junjea

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

Multi-Unit Wendy’s Operator Signs 12-Unit Deal With Layne’s Chicken Fingers

ricki-oberoi-laynes-chicken-fingers-growth

Young Entrepreneur Parth Patel Is Bringing Paris Baguette to the Cleveland Area

young-entrepreneur-parth-patel-is-bringing-paris-baguette-to-the-cleveland-area

Cleaning Franchises Offer Stability and Scalability in a Changing Economic Landscape

cleaning-franchises-offer-stability-and-scalability-in-a-changing-economic-landscape

The 25 Best State Economies for Franchising in 2023

MORE STORIES LIKE THIS