1851

For franchisors, understanding regional economic patterns and forecasts is integral to developing informed growth strategies and predicting the success of their franchisees. Perhaps even more important than understanding which states are thriving is understanding which states are struggling. This article explores the 25 states that are currently less conducive to franchising, as determined by&nbsp;<a href="https://www.richstatespoorstates.org/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-top-25-worst-state-economies-for-franchising-in-2023-2723133" target="_blank" rel="nofollow">ALEC-Laffer's 16th annual "Rich States, Poor States" Economic Competitiveness Index</a>.This comprehensive index provides a detailed economic forecast for each state based on 15 essential economic policy factors, which have historically influenced state competitiveness and growth. The forecast helps identify states with less robust economies, potentially hindering brand success in the next decade.ALEC-Laffer's report provides two crucial rankings: economic performance and economic outlook. The first measures a state's performance over the past decade, while the latter predicts future performance based on the current status of 15 state-policy factors. In general, the report indicates that states with lower taxes and spending typically experience higher growth rates.For example, in a state like New York, an opportunity for franchise growth may not be the most promising. Why? Compare it to Utah. New York’s personal income tax progressivity is nearly four times higher than Utah’s — the state with the best prospective economic outlook. Also, New York’s top marginal corporate tax rates are 18.28% compared to Utah’s 4.85%.Here are the other 24 states, ranked from worst to best, that present greater challenges for franchising, based on the Economic Competitiveness Index:<ol><li><a href="https://1851franchise.com/what-new-yorks-economic-outlook-means-for-franchisors-2722920">New York</a></li><li><a href="https://1851franchise.com/what-vermonts-economic-outlook-means-for-franchisors-2723015">Vermont</a></li><li><a href="https://1851franchise.com/what-minnesotas-economic-outlook-means-for-franchisors-2723035">Minnesota</a></li><li><a href="https://1851franchise.com/what-new-jerseys-economic-outlook-means-for-franchisors-2723025">New Jersey</a></li><li><a href="https://1851franchise.com/what-illinois-economic-outlook-means-for-franchisors-2723012">Illinois</a></li><li><a href="https://1851franchise.com/what-californias-economic-outlook-means-for-franchisors-2723095">California</a></li><li><a href="https://1851franchise.com/what-maines-economic-outlook-means-for-franchisors-2722960">Maine</a></li><li><a href="https://1851franchise.com/what-oregons-economic-outlook-means-for-franchisors-2723014">Oregon</a></li><li><a href="https://1851franchise.com/what-hawaiis-economic-outlook-means-for-franchisors-2722962">Hawaii</a></li><li><a href="https://1851franchise.com/what-marylands-economic-outlook-means-for-franchisors-2722918">Maryland</a></li><li><a href="https://1851franchise.com/what-rhode-islands-economic-outlook-means-for-franchisors-2723037">Rhode Island</a></li><li><a href="https://1851franchise.com/what-connecticuts-economic-outlook-means-for-franchisors-2723034">Connecticut</a></li><li><a href="https://1851franchise.com/what-new-mexicos-economic-outlook-means-for-franchisors-2723036">New Mexico</a></li><li><a href="https://1851franchise.com/what-massachusetts-economic-outlook-means-for-franchisors-2722942">Massachusetts</a></li><li><a href="https://1851franchise.com/what-nebraskas-economic-outlook-means-for-franchisors-2713976">Nebraska</a></li><li><a href="https://1851franchise.com/what-pennsylvanias-economic-outlook-means-for-franchisors-2722985">Pennsylvania</a></li><li><a href="https://1851franchise.com/what-washingtons-economic-outlook-means-for-franchisors-2722967">Washington</a></li><li><a href="https://1851franchise.com/what-montana-s-economic-outlook-means-for-franchisors-2722984">Montana</a></li><li><a href="https://1851franchise.com/what-iowas-economic-outlook-means-for-franchisors-2722964">Iowa</a></li><li><a href="https://1851franchise.com/what-missouris-economic-outlook-means-for-franchisors-2723013">Missouri</a></li><li><a href="https://1851franchise.com/what-kansas-economic-outlook-means-for-franchisors-2722917">Kansas</a></li><li><a href="https://1851franchise.com/what-delawares-economic-outlook-means-for-franchisors-2722916">Delaware</a></li><li><a href="https://1851franchise.com/what-west-virginias-economic-outlook-means-for-franchisors-2722941">West Virginia</a></li><li><a href="https://1851franchise.com/what-kentuckys-economic-outlook-means-for-franchisors-2722936">Kentucky</a></li><li><a href="https://1851franchise.com/what-louisianas-economic-outlook-means-for-franchisors-2722983">Louisiana</a></li></ol>Despite the ranking, aspiring entrepreneurs should not be deterred from investing in a franchise. If market conditions are favorable and a brand addresses a need in that market, franchisees can still thrive and grow their businesses. However, entrepreneurs in states with lower economic outlook rankings might consider franchising opportunities with lower entry costs.For franchise owners and potential investors, the data provided by ALEC-Laffer’s 16th annual “Rich States, Poor States” Economic Competitiveness Index provides crucial insights. However, even in states with lower economic outlooks, the right business strategies and understanding of market needs can lead to successful franchising opportunities anyway.

The Top 25 Worst State Economies for Franchising in 2023

1851 Franchise

Here are some of the states that have the weakest opportunities for franchise success, based on ALEC-Laffer’s most recent state-by-state comparison of economic competitiveness and outlook.

the-top-25-worst-state-economies-for-franchising-in-2023

Dillas Quesadillas

Beyond Fast Casual: How Dillas Primo Quesadillas Is Leading the QSR+ Revolution

beyond-fast-casual-how-dillas-primo-quesadillas-is-leading-the-qsr-revolution

Homewatch CareGivers

How Homewatch CareGivers® Became the Wellness-Forward Home Care Franchise Built on 45 Years of Purposeful Human Interactions

how-homewatch-caregivers-became-the-wellness-forward-home-care-franchise-built-on-45-years-of-purposeful-human-interactions

Keke's Breakfast Cafe

Building a People‑Powered Breakfast Franchise: How Christie Schatz Shapes Culture at Keke’s Breakfast Cafe

kekes-breakfast-cafe-culture-and-brand-values

KidStrong Franchising, LLC

Why KidStrong is Targeting San Diego for Franchise Growth 

why-kidstrong-is-targeting-san-diego-for-franchise-growth

The Growth Coach

The Growth Coach Closes Record-Breaking Year, Marking Major Gains in Franchise Sales and Corporate Expansion

the-growth-coach-closes-record-breaking-year-marking-major-gains-in-franchise-sales-and-corporate-expansion

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

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

California Pizza Kitchen’s Sale Is the Latest in the Era of PE-Backed Turnarounds in Franchising

california-pizza-kitchens-sale-is-the-latest-in-the-era-of-pe-backed-turnarounds-in-franchising

Buying a fitness franchise, people exercising

Boutique vs. Big Box Gym Franchises: Which Offers Best ROI in the $7 Billion Fitness Market?

buy-fitness-franchise-boutique-big-box-comparison

Pieology Pizza Enters Chapter 11 Following Costly Bid To Save Struggling Stores

pieology-pizza-files-chapter-11-bankruptcy

CNBC: McDonald’s Will Assess if Franchisees Are Offering Value for Customers Under New Standards

mcdonalds-franchise-standards-value-metric

How AI Is Transforming Restaurant Operations and Franchises

ai-impact-restaurants-franchises-human-centric-technology

AI-related job cuts, October U.S. job cuts, American job cut record

AI-Fueled Layoffs Reshape the U.S. Job Market — And Highlight Franchising’s Resilience

ai-job-cuts-franchising-path-forward

Paris Baguette Welcomes Zac Sulma as New Chief Operating Officer

new-coo-zac-sulma

Photo of group of dogs standing together in day care facility

Top Pet Boarding and Day Care Franchise Opportunities for 2025

top-pet-boarding-daycare-franchises

Do You Qualify? A Look at the Chick-fil-A Franchise Requirements

do-you-qualify-a-look-at-the-chick-fil-a-franchise-requirements

The Top 15 Pet Wellness and Vet Care Franchises for 2025

top-pet-wellness-franchise-opportunities

A Practical Playbook: Who To Call First When Franchising Your Business

franchising-your-business-who-to-call-first

The 15 Top Pet Grooming Franchises To Consider for 2025

the-15-top-pet-grooming-franchises-to-consider

image of jerome hanway from right at home Las Cruces, New Mexico 1851 franchise franchisee spotlight

Jerome Hanway Is Building His Right at Home Franchise Around His Mission To Serve

right-at-home-franchise-las-cruces-jerome-hanway

The Top 25 Worst State Economies for Franchising in 2023

MORE STORIES LIKE THIS