At the beginning of each year, the franchising industry anxiously awaits the release of the Franchising Economic Outlook Report from the International Franchise Association (IFA) and market insights leader, FRANdata. The release of this analytical report is usually timed with the IFA’s annual convention and 2024 was no different. In compiling this report, the two organizations rely on a wide variety of quantitative data sets and sources, including publicly available information on franchisors, FDDs, year-over-year growth rates, and other macroeconomic factors to deliver a series of predictions specific to certain industries.
Of course, what Unleashed Brands is most interested in reviewing is the data and prognostications for the child-related services industry – and this year’s report definitely did not disappoint. Below is a recap of the franchising industry as a whole, and a closer look at what’s in store for the type of franchises that correlate with Unleashed Brands’ youth enrichment business opportunities.
2024…A Year of Transitional Change?
As the lingering effects of the pandemic continue to recede, the growth rate for the franchising industry looks quite promising – especially after overcoming runaway inflation and rising interest rates just one year ago. According to this year’s Franchising Economic Outlook, the IFA and FRANdata offer the following predictions for the industry as a whole:
- The number of established franchise units will increase 1.9%, or 15,000 to reach a grand total of 821,000 nationwide. Some experts believe it’s slightly possible the industry may surpass the one million mark
- The franchising industry will be responsible for over 220,000 new jobs, a growth rate of 2.6%. Total franchise employment is forecasted to reach 8.9 million workers
- The combined GDP of franchises will top $545 billion
- The top states for growth are Texas, Florida, Georgia, North Carolina, and South Carolina – a southern sweep
Outlook for Child-Related Services Franchise Growth
Unleashed Brands is proud to share that the 2024 report indicates that Personal Services, a franchise sector that includes the child-related services category, will maintain its position as the top industry for franchise expansion – both in the number of establishments and associated output. The IFA and FRANdata predict a specific 3% increase in units, which will top out at 125,000 locations. This industry will support an additional 610,000 new jobs and output is predicted to expand 7.3% to over $45 billion in 2024. As for a direct quote, here’s exactly what the report had to say about child-related services:
“Child-related services, particularly in early daycare and education, are anticipated to grow as more parents return to work, despite a slight decline in births from 2021 to 2022.”
It’s certainly nice to know that the franchising industry’s largest trade organization and the leading market analysts believe the child-related business sector remains the most robust of all other competing categories.
To hear what the 2024 Franchising Economic Outlook Report had to say about the other franchise industry categories, as well as a state-by-state breakdown on projected growth, follow this link.
A Little More About Us…
The Unleashed Brands platform includes Urban Air Adventure Park, Snapology, The Little Gym, XP League, Class 101, Premier Martial Arts, and Sylvan Learning Centers – all youth enrichment franchises. As the parent company, Unleashed Brands was founded to curate and grow the most innovative and profitable business opportunities that help kids learn, play and grow. Over the last 10 years, the team at Unleashed Brands has built a proven platform and know-how for scaling businesses that focus on serving families. All have become first-in-category brands by providing fun, engaging, and inspiring experiences that help kids with their No. 1 development goal – to become who they were destined to be. To speak with one of our franchise experts and learn more about our children’s business opportunities, simply fill out this form and an Unleashed Brands representative will be in touch shortly.
