What Makes North Carolina Tick

From skilled workers and low labor costs to a nationally touted business climate, North Carolina has all the tangible elements that businesses need to truly thrive.

The numbers say it all—in 2015, North Carolina ranked No. 2 in Forbes 10^th annual Best State for Business, up one spot from last year. With one of the highest net migration rates in the U.S., people have been flocking to North Carolina for the past decade. The unemployment rate was stuck above 10% for most of 2009 through 2011, but in 2015, it dipped to 5.4%. And North Carolina’s labor costs are also 10% below the national average—the fifth lowest in the country. All of these numbers have created the perfect storm for the Tar Heel state, and for the last 10 years, it has continuously ranked as one of the country’s top five states for business overall.

But North Carolina isn’t just good for business—it’s one of the country’s friendliest environments for franchising, too. Collectively, franchising contributes to $22.8 billion in North Carolina’s economic output, and the industry has added more than 295,000 jobs across the state.

Last year, to highlight the wide spectrum of franchise businesses in the state, franchisees and franchisors representing the more than 26,000 franchise establishments throughout North Carolina met with legislators in Raleigh to promote the franchise model’s contribution to the state. They also educated lawmakers about policies that will help businesses continue to grow and create additional jobs. This was all a part of the IFA’s inaugural North Carolina Legislative day, and it was a testament to how important franchising is to this state’s booming economy.

“Franchises represent a major pillar of the North Carolina economy, and they have helped lead the state out of the recent recession,” said IFA leadership in a recent interview for Franchising World. “North Carolina is very pro-business and pro-franchise.”

A few franchises in particular that have made an immense footprint in North Carolina include Golden Corral, Bojangles’, Brixx Wood-fired Pizza, Krispy Kreme Doughnuts, Saladworks and Famous Toastery. All of these brands are poised for continued growth throughout North Carolina in the years ahead—meaning that thanks to the state’s nurturing business environment, many more jobs are on the way.

Saladworks, the nation’s first and largest fresh-tossed salad franchise, currently has a location in Greensboro, and the brand is targeting markets like Raleigh and Charlotte for expansion. According to Saladworks Vice President of Franchise Development David Wheeler, North Carolina is an important market for the brand’s overall growth, and available territory is moving fast.

“North Carolina is a natural fit for our concept given pent up consumer demand for healthier options,” Wheeler said. “Additionally, there is great real estate still available in major cities, and North Carolina is a natural extension for us.”

Famous Toastery is another franchise that has benefitted from North Carolina’s business climate. Originally founded in Charlotte, this better-breakfast brand got its start in North Carolina, and quickly became the area’s favorite breakfast spot—and now, it has grown into one of America’s biggest new chains.

“When lawmakers hear the positive stories of job creation, economic opportunity and entrepreneurship directly from their own franchisee and franchisor constituents, the message hits home with resounding force,” the IFA said. “There’s a lesson to be learned in the success North Carolina has seen with the help of franchising. It’s a mutually-beneficial relationship—it’s good for the economy and good for the industry as a whole.”