Florida among top states for franchise growth in 2025: Report

Rising business optimism and lower interest rates than early 2024 are expected to drive more franchise establishments nationwide this year, according to a new report from the International Franchise Association. 

About 20,000 new franchise establishments are projected to be added around the United States this year, with about 1,600 of them in Florida, the report says. That puts the Sunshine State among the top 10 states for franchise growth in 2025, according to the report.

Florida had an estimated 64,800 franchises in 2024, and with projected growth of 2.4%, is poised to have 66,400 franchise establishments in 2025, according to the report.

“Franchising in Florida remains a major driver of growth and upward economic mobility,” International Franchise Association President and CEO Matt Haller says in a statement.

About 14,600 new jobs will be created by the additional franchises in the Sunshine State in 2025, the report says; franchise employment in Florida is expected to grow 3.5%, from 687,800 in 2024 to 702,400 in 2025.

Meanwhile, franchise output in Florida is expected to rise by 5.6%, from $69.1 billion in 2024 to $73 billion in 2025.

“Rising consumer confidence and increased spending are key drivers of this growth,” the report says.

Overall, retail food, products and services as well as personal services will experience more growth than other industries, according to the franchise association’s report. "Retail food, products and services" includes everything from grocery stores to auto repair shops to pharmacies to home furnishing stores to building material and garden equipment suppliers. "Personal services" encompasses child care, health and fitness, education, beauty, moving, storage, pets and travel.

In particular, personal services is expected to lead franchise expansion, growing at a rate of about 4.3% in 2025, according to the report. The skincare industry within the beauty segment is taking off due to a growing consumer base including Generation Z, Generation Alpha and an increasing number of male consumers, the report says. Niche fitness centers are also among the services projected to grow, particularly those offering saunas, cold plunges, physical therapy, intravenous vitamin hydration and mental health therapies, according to the report.

“The resilience of the franchise business model not only helped the sector survive the uncertainty of recent years, but thrive in the face of challenging economic conditions,” Haller says in the statement. "A more favorable economic and regulatory climate have created new optimism and confidence for the year ahead. For those considering a franchise investment or IFA members growing their brands, 2025 is poised to be a banner year.”