Franchise sales in the United States increased 12%

Franchise sales in the United States increased 12%



Franchise sales in the United States increased 12% in September and October 2023 compared to the same period in 2022. This growth is due to a number of factors, including:

  • The economic recovery from the COVID-19 pandemic, which has boosted consumption.
  • The increasing confidence of investors in the franchise sector.
  • The diversification of the franchise offering, which offers investors a wider range of options to choose from.

In September, there were 10,000 new franchise openings in the United States, 6% more than in the same month of 2022. In October, the number of openings reached 12,000, 8% more than the previous year.

The franchise sector is consolidating as an attractive option for investors, as it offers a number of advantages, such as:

  • A proven and successful business model.
  • A recognized brand and a consolidated marketing system.
  • Continuous support from the franchisor.

The sectors that recorded the highest growth in sales in September and October were:

  • Food and beverage, with an increase of 15%.
  • Retail, with an increase of 12%.
  • Service, with an increase of 10%.

The regions that recorded the highest growth in sales were:

  • California, with an increase of 15%.
  • Texas, with an increase of 12%.
  • Florida, with an increase of 10%.

Overall, the outlook for the franchise sector in the United States is positive. Growth is expected to continue in the coming months, driven by the economic recovery and the increasing confidence of investors.

Factors contributing to sales growth

The following are some of the factors that have contributed to the growth of franchise sales in September and October 2023:

  • Economic recovery

The economic recovery from the COVID-19 pandemic has boosted consumption, which has benefited the franchise sector. People have more money to spend and are willing to spend it on goods and services.

  • Increased investor confidence

The increased confidence of investors in the franchise sector has made it easier to access financing. This has enabled franchisees to open new businesses and expand their operations.

  • Diversification of the offering

The diversification of the franchise offering has offered investors a wider range of options to choose from. This has made the sector more attractive to investors, as they can find franchises that meet their needs and goals.

Conclusions

Franchise sales in the United States increased 12% in September and October 2023 compared to the same period in 2022. This growth is due to a number of factors, including the economic recovery, the increasing confidence of investors, and the diversification of the offering. The outlook for the franchise sector in the United States is positive, as growth is expected to continue in the coming months.

Additional insights

In addition to the factors mentioned above, there are a few other insights that can be drawn from the data on franchise sales in September and October 2023.

  • The growth in sales was broad-based, across all sectors and regions. This suggests that the recovery in the franchise sector is sustainable and not just a temporary phenomenon.
  • The growth in sales was driven by both new franchise openings and increased sales at existing franchises. This suggests that the franchise sector is attracting new investors and is also seeing growth from existing franchisees.
  • The growth in sales was particularly strong in the food and beverage sector. This is likely due to the continued popularity of takeout and delivery services.

Overall, the data on franchise sales in September and October 2023 is positive. It suggests that the franchise sector is on track for continued growth in the coming months.


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