Franchise Opportunities In An Unconventional Economy

The current economy is characterized by an interesting mix of optimism and anxiety. Franchises are a significant segment of the economy and despite a challenging economy, growth is expected to continue. For example, the International Franchise Association forecasted that franchises in the U.S. would grow by 3.0% in 2023, adding 254,000 jobs, reaching a total of 8.7 million employees. But while growth among franchisors is expected to continue, rising interest rates are impacting their growth and expansion outlook according to a confidence survey just released in Franchise Times by financial technology company Boefly, that helps franchisors qualify their applicants and connects candidates with lending options.

Franchises show unique characteristics in response to economic fluctuations and tend to exhibit counter-cyclical behavior, often performing better during challenging times. Even so, the current economy defies easy categorization, making it essential to analyze how franchises are faring and what trends are emerging.