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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

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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.


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Prince St. Pizza Partners With Dave’s Hot Chicken Franchisee for National Growth

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KKR to Acquire Nothing Bundt Cakes in $2 Billion Deal -  1851 Franchise

KKR to Acquire Nothing Bundt Cakes in $2 Billion Deal

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FTC Settlement Puts New Focus on Franchise Disclosure Standards - 1851 Franchise

FTC Settlement Puts New Focus on Franchise Disclosure Standards

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Applebee’s Franchisee Files for Bankruptcy as Dine Brands Moves to Acquire 53 Units - 1851 Franchise

Applebee’s Franchisee Files for Bankruptcy as Dine Brands Moves to Acquire 53 Units

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Why Skilled Trades Are Emerging as the Economy’s Most AI-Resilient Careers

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<a href="https://princestreetpizza.com/">Prince St. Pizza</a> has partnered with a&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-daves-hot-chicken-franchise-costs-fees-profit-and-data-2723529">Dave’s Hot Chicken</a> franchisee to support its national expansion,&nbsp;<a href="https://www.pizzamarketplace.com/news/prince-st-pizza-partners-with-daves-hot-chicken-franchisee-for-national-expansion/#:~:text=Prince%20St.%20Pizza%2C%20a%20New%20York%2Dbased%20pizzeria,the%20country%2C%20according%20to%20a%20press%20release.">Pizza Marketplace recently reported</a>. The New York-based brand has joined forces with&nbsp;<a href="https://www.linkedin.com/in/lawrencekourie/">Lawrence Kourie</a>, founder and largest franchisee of Dave’s Hot Chicken, to grow its footprint across the country. Kourie’s experience opening and operating locations in multiple markets will help the brand as it enters new territories."Lawrence has built and operated one of the fastest-expanding restaurant concepts in the country, but what stands out is his disciplined approach to growth and brand integrity," said&nbsp;<a href="https://www.linkedin.com/in/lawrence-longo-342856/?skipRedirect=true">Lawrence Longo</a>, CEO of Prince St. Pizza. "He understands how to develop a concept without losing what made it special in the first place, which is critical as we enter this next phase."The expansion will use Kourie’s existing infrastructure and operations to introduce Prince St. Pizza into new markets. Each location will aim to reflect the same experience as the brand’s original Nolita shop."I have spent years evaluating restaurant concepts, and it is rare to find one that delivers both a strong product and a clear identity," Kourie said. "What Prince St. has built is difficult to truly replicate. The focus now is on growing the brand in a way that preserves that foundation while introducing it to new communities."Kourie is a key operator within the Dave’s Hot Chicken system,&nbsp;<a href="https://1851franchise.com/daves-hot-chicken-sold-to-roark-capital-in-1-billion-deal-to-fuel-global-expansion-2729557#stories">which Roark Capital acquired in a $1 billion deal in 2025</a>. The partnership connects Prince St. Pizza to an operator with experience scaling a brand that has attracted major private equity investment.Read the full article&nbsp;<a href="https://www.pizzamarketplace.com/news/prince-st-pizza-partners-with-daves-hot-chicken-franchisee-for-national-expansion/#:~:text=Prince%20St.%20Pizza%2C%20a%20New%20York%2Dbased%20pizzeria,the%20country%2C%20according%20to%20a%20press%20release.">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

Prince St. Pizza is teaming up with a leading Dave’s Hot Chicken franchisee to expand nationwide, tapping proven operator experience to drive growth.

According to a&nbsp;<a href="https://www.businesswire.com/news/home/20260312305776/en/RF-Expands-Residential-and-Commercial-Services-Portfolio-with-Investment-in-Precision-Garage-Door-Service-Franchisee">recent release</a>,&nbsp;<a href="https://rf-partners.com/">RF Investment Partners</a>, a group focused on flexible capital solutions and value-add support to lower-middle-market businesses, has teamed up with&nbsp;<a href="https://www.burlingtoncp.us/">Burlington Capital Partners</a>, a group focused on family, founder and operator-owned lower-middle-market businesses, to acquire a prominent multi-territory&nbsp;<a href="https://franchise.neighborly.com/precision-door">Precision Garage Door Service</a> franchise.The investment marks the seventh platform for RF within the service space. Precision Garage Door Service, which is part of the larger&nbsp;<a href="https://www.neighborly.com/">Neighborly</a> ecosystem, specializes in the installation, maintenance and repair of garage doors.&nbsp;“We are proud to partner with management and the Burlington team to support continued growth by investing in people and operational excellence,”&nbsp;<a href="https://www.linkedin.com/in/peter-fidler-6787143">Peter Fidler</a>, managing partner and co-founder of RF Investment Partners, said in the release. “The sector continues to present compelling opportunities given the essential nature of garage door repair, and we look forward to building on Precision’s strong foundation to drive long-term value.”This deal is part of the broader trend toward institutionalized multi-unit and multi-territory operators. Previously, franchising was largely viewed as the place for “mom-and-pop” businesses. And while franchises remain small, local businesses, the aggressive entry of private equity firms focused on operators (franchisees) rather than the brand (franchisor) is bringing new energy to small business ownership.Read the full release&nbsp;<a href="https://www.businesswire.com/news/home/20260312305776/en/RF-Expands-Residential-and-Commercial-Services-Portfolio-with-Investment-in-Precision-Garage-Door-Service-Franchisee">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

Design with Precision Garage Door Service team members

The strategic investment marks the seventh residential services platform for RF and reflects a growing institutional desire for high-potential, operator-led franchises.

RF Investment Partners and Burlington Capital Join Forces to Acquire Top Precision Garage Door Franchise

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Artificial intelligence is changing how work gets done in industries ranging from finance and customer service to software development. As that shift accelerates, more professionals are asking which careers will hold up best over time. New research suggests the answer may be found in an unexpected corner of the economy: the skilled trades.<a href="https://www.anthropic.com/research/labor-market-impacts">A recent study</a> from&nbsp;<a href="https://www.anthropic.com/company">Anthropic</a> analyzing real-world AI usage across occupations found that the roles most exposed to automation are concentrated in white-collar, information-based professions such as computer programming, data entry and financial analysis. By contrast, many occupations requiring physical skill, real-world diagnostics and on-site service remain far less exposed to AI automation.For industries built around hands-on work - including plumbing, HVAC, electrical services and restoration - the findings reinforce what operators across the trades have long understood: while artificial intelligence can assist with planning and data analysis, it cannot replace the skilled technicians who keep homes and businesses running.<h2>The Limits of Automation in Physical Work</h2>The Anthropic research introduces a new metric called “observed exposure,” which combines theoretical AI capabilities with real-world usage patterns. While many digital tasks show high exposure to automation, a significant share of occupations still have little or no measurable AI coverage.In fact, roughly 30% of workers in the study had jobs with no observable AI exposure at all. Many of those occupations involve physical labor or real-time problem solving in unpredictable environments - the kinds of tasks that cannot easily be automated through software.Repairing a failing HVAC system, diagnosing a plumbing leak or troubleshooting an electrical panel requires a combination of technical expertise, situational awareness and physical presence. These factors make the skilled trades structurally different from many information-based roles currently seeing higher levels of automation exposure.At the same time, according to research outlets like the CSIS, the demand for skilled trades&nbsp;<a href="https://www.csis.org/analysis/genais-human-infrastructure-challenge-can-united-states-meet-skilled-trade-labor-demand">continues to grow.</a> Aging housing stock, expanding suburban development and increased homeownership have created sustained demand for professional home services across the United States.<h2>AI Is Augmenting the Trades - Not Replacing Them</h2>While the trades may be resistant to direct automation, that does not mean they are untouched by technological change. In fact, many service businesses are adopting new digital tools to improve operations, streamline scheduling and provide better customer experiences.Artificial intelligence is playing more of a support role in the trades than a replacement role. Scheduling tools can help optimize routes, cut down drive time and improve response speeds, while automated call systems can handle customer inquiries and dispatch requests more efficiently. Data platforms also give franchise owners greater visibility into business performance, helping them manage teams and improve service quality.<a href="https://www.linkedin.com/in/steve-clemente-b4244539/">Steve Clemente</a>, president and chief operations officer of trade brands at&nbsp;<a href="https://www.authoritybrands.com/">Authority Brands</a>, says this shift reflects a broader evolution happening across the home services sector.“Artificial intelligence isn’t replacing skilled tradespeople - it’s helping business owners operate more efficiently,” Clemente said. “Technology can streamline scheduling, improve communication with customers and give owners better visibility into their businesses. But the work itself still depends on trained technicians solving real problems in real homes.”<h2>Technology Supporting a Growing Workforce</h2>Authority Brands, one of North America’s leading home services franchisors, supports more than 1,000 franchise owners operating across over 2,700 territories through brands including&nbsp;<a href="https://benjaminfranklinplumbingfranchise.com/">Benjamin Franklin Plumbing</a>,&nbsp;<a href="https://mistersparkyfranchise.com/">Mister Sparky Electric</a>,&nbsp;<a href="https://onehourheatandairfranchise.com/">One Hour Heating &amp; Air Conditioning</a> and&nbsp;<a href="https://drymedicfranchise.com/">DRYMedic Restoration</a>.Across the system, technology platforms are increasingly being used to support franchise owners as they grow their businesses and manage complex operations.Digital platforms allow service teams to track jobs in real time, analyze performance metrics and communicate more effectively with customers. These tools help franchise owners scale their businesses while maintaining consistent service standards across markets.At the same time, the human element remains central to the industry. While Authority Brands continues to invest in technology tools, there is an equal emphasis on training and resources that ensure technicians are prepared to perform at a high level in the field. Diagnosing mechanical failures, responding to emergency repairs, and building trust with homeowners still requires the kind of judgment and experience that can only be developed through hands-on training and real-world application.“Technology gives operators better tools, but the foundation of the business is still the technician in the field,” Clemente said. “The trades combine technical skill, physical work and customer experience - and that combination is very difficult for automation to replicate.”<h2>A Career Path Gaining New Attention</h2>As concerns about automation grow in white-collar industries, the resilience of the trades is beginning to attract broader attention.Anthropic’s research suggests that many of the occupations most exposed to AI are also among the most educated and highest paid professions today - raising new questions about long-term job security in those fields.The skilled trades, meanwhile, are dealing with a different issue: not enough workers. Industry groups and labor forecasts continue to show a need for hundreds of thousands of additional technicians in the coming decade as veteran workers retire and service demand keeps growing.For many professionals exploring career transitions or business ownership opportunities, the trades are becoming an increasingly attractive option.“The home services industry has always been essential, but we’re seeing more people recognize the long-term stability it offers,” Clemente said. “These are businesses rooted in local communities, solving problems that homeowners will always have. Technology can make the work more efficient, but the demand for skilled technicians isn’t going away.”<h2>A Technology-Enabled Future for the Trades</h2>If anything, the rise of artificial intelligence may reinforce the long-term importance of skilled trades rather than diminish it.While digital technologies will continue to reshape how service businesses operate, the work itself will remain deeply human. Skilled technicians will continue to diagnose problems, install systems and maintain the infrastructure that modern life depends on.In that sense, the future of the trades may represent a powerful example of how technology and human expertise can work together.&nbsp;As automation advances across the broader economy, the industries that combine technical skill, physical work and customer service may prove to be among the most resilient of all.For more information on franchise trends, check out these related articles on 1851 Franchise:<ul><li><a href="https://1851franchise.com/ai-is-reshaping-franchising-100-billion-valuations-and-hyper-localized-advertising-2729847#stories">AI Is Reshaping Franchising: $100 Billion Valuations and Hyper-Localized Advertising</a></li><li><a href="https://1851franchise.com/ai-unemployment-impact-white-collar-job-loss-2729492#stories">AI Could Push Unemployment to 20% — Fueling a Surge in First-Time Franchise Buyers</a></li><li><a href="https://1851franchise.com/2026-layoffs-corporate-escapee-franchise-opportunities-2731323#stories">Mass Layoffs Are Destabilizing the Labor Landscape; Corporate Escapees May Turn to Franchising as Their Next Step</a></li></ul>

Research from Anthropic shows that hands-on careers requiring physical skill and real-world diagnostics remain far less exposed to AI automation than many white-collar professions. 

<a href="https://kbpbrands.com/">KBP Brands</a>, the multi-brand franchisee group with over 1,100 restaurants across 32 states,&nbsp;<a href="https://www.prnewswire.com/news-releases/kbp-brands-doubles-down-on-sonic-with-78-restaurant-acquisition-302695591.html">has announced</a> its acquisition of 78 additional SONIC units. The new units are spread across Ohio, Kentucky, North Carolina, Tennessee and Virginia.This is the second SONIC acquisition KBP has completed in less than two years, and it makes KBP the fourth-largest SONIC franchisee in the system with 164 total locations across eight states.“We’ve had a successful five-year partnership with Inspire Brands and have seen strong results from our initial SONIC purchase,” KBP CEO&nbsp;<a href="https://www.linkedin.com/in/mike-kulp-820820">Mike Kulp</a> said in a statement. “We look forward to expanding that with a larger footprint and additional operational efficiencies.”KBP is one of the country’s largest franchisee groups, reporting approximately $1.5 billion in annual sales across its portfolio, which includes KFC, Taco Bell and Arby’s, another Inspire Brands franchise."Our relationship with KBP Brands continues to grow due to their operational excellence and our shared commitment to guest satisfaction and a culture that champions innovation," said&nbsp;<a href="https://www.linkedin.com/in/john-kelly-b48426b">John Kelly</a>, brand president at SONIC. "KBP's expansion with SONIC demonstrates their dedication to our vision and the brand's long-term growth."Read the full press release&nbsp;<a href="https://www.prnewswire.com/news-releases/kbp-brands-doubles-down-on-sonic-with-78-restaurant-acquisition-302695591.html">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

Photo of SONIC franchise logo against blue sky backdrop

The franchisee group, which already operates over 1,100 units, is growing its portfolio with the quick-service brand, becoming one of SONIC’s largest franchisees.

KBP Brands Acquires 78 SONIC Locations Across Five States

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How much can franchisees make? It’s a question many prospective owners ask before investing in a franchise. While earnings tend to be driven by variables such as industry, location and general management skills, a proper understanding of the key factors driving profitability can help franchise owners develop expectations that are realistic.&nbsp;Multi-unit franchisee&nbsp;<a href="https://www.linkedin.com/in/mangesh-patel-9368569/">Mangesh Patel</a>, who’s readying the launch of six&nbsp;<a href="https://www.beefobradysfranchise.com/">Beef ‘O’ Brady’s</a> restaurant locations in the Macon, Georgia area, shares insights from his franchising experience.<h2>Understanding Franchise Income</h2>Keeping operational costs in check can have a major impact on overall earnings. Taking a proactive approach to expenses such as food and labor, as well as payroll and scheduling, can help align actual franchise income with general expectations for the business.“I just had a meeting with a couple of people, and they said, ‘You talked about a 25% profit margin, but I’m only doing 12%.’ So, I looked at the figures they sent me,” Patel said. “Their&nbsp;<a href="https://1851franchise.com/calculate-restaurant-franchise-profit-2730476">restaurant</a> food cost was running at 37%, which should be around 30%. The national average is about 32%. If I do things correctly, my average food cost needs to be at or below 30%. And payroll should run around 18%. But many people run 25 to 28%.”So,&nbsp;<a href="https://1851franchise.com/unraveling-franchise-earnings-how-much-can-you-really-make-2723935">how much can franchisees make</a>? Here are five areas to consider.<h2>Practical Tips for Prospective Franchisees</h2><ol><li>Control Costs From Day One:&nbsp;It’s important to monitor payroll, food and supply costs closely. Overstaffing and inefficiencies can quickly reduce profits.</li><li>Plan For The Opening Surge:&nbsp;Traffic within the first few months of opening is likely to be higher. It’s important to adjust staffing and inventory accordingly, and pay close attention to how those levels change as time goes on.</li><li>Invest In Training:&nbsp;Properly trained workers can help reduce waste and improve overall service, which has a direct effect on net income.</li><li>Understand Your Market:&nbsp;Each market is unique and revenue potential will vary depending upon location, demographics and competition.</li><li>Track Metrics Regularly:&nbsp;Food cost percentages, labor ratios and weekly sales data act as key indicators operations may need to be adjusted.</li></ol><h2>What Profitability Really Comes Down To</h2>Patel notes that if franchise owners manage labor and costs properly, it’s not impossible to achieve strong cash flow even in the first year, bucking some franchising trends.So,&nbsp;<a href="https://1851franchise.com/how-much-can-you-make-as-a-franchise-owner-2724761">how much can franchisees make</a>? While results tend to vary, careful planning, disciplined operations and a proactive approach to assessing initial costs are essential. But by grasping and guiding the elements that drive franchise profitability, franchise owners can maximize overall business earnings, scaling a business that’s sustainable financially over the long term.Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our&nbsp;<a href="https://1851franchise.com/power-rankings">Power Rankings</a> to read more on brands making moves.

How much can franchisees make? This guide explains what drives franchise earnings and how to manage costs, with expert tips from multi-unit owner Mangesh Patel on maximizing your franchise income.

How Much Can Franchisees Make? A Guide for Prospective Franchise Owners

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Beef 'O' Brady's Franchise Costs, Fees, Profit and Data for 2026

Franchise Opportunity Deep Dive: Beef ‘O’ Brady’s is a family sports pub concept built around community, casual dining and lifelong local loyalty.

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Franchise Opportunity Deep Dive: A purpose-driven swim instruction and aquatics management franchise offering at-home, indoor and community-based swim programs.

urSwim Franchise Costs, Fees, Profit and Data for 2026

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Amada Senior Care Franchise Costs, Fees, Profit and Data for 2026

Franchise Opportunity Deep Dive: Amada Senior Care is a non-medical home care, assisted living placement, and related senior-support services with multiple revenue streams.

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Visiting Angels Franchise Costs, Fees, Profit and Data for 2026

Franchise Opportunity Deep Dive: Visiting Angels is a senior home care franchise focused on in-home support for seniors and individuals with disabilities.

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Franchise Opportunity Deep Dive: A fast-casual restaurant brand serving made-from-scratch sandwiches, salads, soups and pizzas rooted in Southern hospitality.


The 25 Best State Economies for Franchising in 2023

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