Now, those businesses are among establishments in the personal services space that are projected to help that sector garner the most growth in the franchising industry this year.
Based on the number of establishments and output, the personal services sector ranked first among its counterparts, according to the International Franchise Association’s 2022 Franchising Economic Outlook.
The sector regained the No. 1 position after last finishing in the top spot in 2019.
Brands like Great Clips, Anytime Fitness, and The Joint Chiropractic are among those operating in this business line.
The IFA worked with franchise research and advisory firm FRANdata to compile the report. It includes a look at eight major franchising business lines. Commercial & residential services and table & full-service restaurants tailed personal services as the leading growth performers amid the businesses analyzed.
The report is important as it offers prospective and existing franchisees, including black entrepreneurs considering investing in a franchise, a peek at brands that are among the blazing concepts across several franchises based on unit growth and other factors.
Franchising has been popular among Black entrepreneurs for years as an operating business model. Roughly 26% of franchises are owned by people of color, versus 17% of independent businesses generally, figures from Oxford Economics show
Overall, franchise industry growth this year is expected to stabilize. Franchise establishments will grow by 2.2% to 792,014. The IFA reported franchises are projected to add this year 257,000 jobs with “excellent pay and benefits” reaching 8.5 million U.S. workers. The organization stated the top 10 states for franchise growth this year are expected to be Texas, Florida, Arizona, South Carolina, Idaho, Tennessee, North Carolina, Utah, Montana, and Nebraska.
“At every level, local franchise businesses offer opportunities for economic and career advancement,” stated IFA President and CEO Matthew Haller per a news release.
The personal services sector experienced a “drastic” decline in 2020. But the IFA reported the sector rebounded last year, courtesy of “strong consumer spending, a strong labor market, and the fast roll-out of COVID vaccines.”
The IFA added “fitness centers, entertainment and recreation facilities, spa and massage centers, and beauty-related studios all
saw steady increases in foot traffic because of the strong rebound in-person activities, such as event celebrations, returns to the office, and the pursuit of long-overdue leisure experiences, and the extra focus on health and wellness.”The number of establishments in that space in 2022 is anticipated to grow by 3.1% to roughly 117,600, and the sector is expected to contribute 552,700 jobs, the IFA disclosed. The IFA noted, “output is anticipated to rise by 10.5% to $39.6 billion, slightly outpacing the pre-pandemic level.”
Check out the full report here.