Wisconsin added 209 new franchise businesses in 2021; Will add 177 in 2022
WASHINGTON, Feb. 16, 2022 – The International Franchise Association (IFA) today released its 2022 Franchising Economic Outlook showing the impact of franchising on the economy in Wisconsin. Nationally, franchising helped lead the economic recovery, and in Wisconsin, franchising employment grew at a rate of 7.40% with 10,209 new jobs created in 2021. 2022 will be a year of continued growth and normalization.
The full report is available here.
“It’s no surprise that these local businesses are helping lead Wisconsin’s economic recovery from the pandemic,” said Matt Haller, President and CEO of the International Franchise Association. “Franchising creates unparalleled opportunities for growth and jobs, and the data is here to show just that impact. As we continue to navigate pandemic-related challenges, it is critical that lawmakers avoid policies that will impede the growth we have seen over the past year.”
The 2022 Franchising Economic Outlook is a hallmark annual study detailing the franchise sector’s performance for the past year and projected economic outlook for the year ahead, as well as an in-depth state outlook for all 50 states and Washington D.C.
- Franchising grew to 14,095 establishments in 2021 and is expected to grow an additional 1.30% in 2022, increasing to 14,272 establishments.
- Economic output by franchises grew at a record rate of 14.90% in 2021, with an increased output of $12,802,000 million. Output growth is expected to continue into 2022 by 4.00%.
- Franchising in Wisconsin is expected to create an additional 3,226 career opportunities in 2022.
Key national highlights from the 2022 report include:
- Following 2020 shutdowns, output for franchises rebounded by over 16% in 2021, reaching nearly $788 billion in output.
- Franchising will end 2022 with more than 792,000 establishments, adding a net gain of 17,000 new locations, with a marginally lower growth rate of 2.2%.
- Franchises’ GDP contribution to the overall economy will remain stable at 3% in 2022, but the growth rate is likely to slow to 5.7%, still higher than the pre-pandemic level.
- In 2021, franchise employment increased by 8.8%—adding over 46,000 jobs per month. Franchise employment is forecasted to grow at a slightly lower rate of 3.1% to a total of 8.5 million jobs, back to the pre-pandemic level, a net gain of about 257,000 jobs.
- Franchised establishments in the Personal Services sector are predicted to lead the growth in 2022, followed by Commercial & Residential Services.