The International Franchise Association (IFA) released its 2022 Franchising Economic Outlook showing the impact of franchising on the economy in Iowa. Nationally, franchising helped lead the economic recovery, and in Iowa, franchising employment grew at a rate of 8.20% with 5,713 new jobs created in 2021.
“It’s no surprise that these local businesses are helping lead Iowa’s economic recovery from the pandemic,” Matt Haller, president and CEO of the International Franchise Association, stated in a release. “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.”
- Franchising grew to 7,777 establishments in 2021 and is expected to grow an additional 0.2% in 2022, increasing to 7,791 establishments.
- Economic output by franchises grew at a record rate of 15.70% in 2021, with an increased output of $6,560,000 million. Output growth is expected to continue into 2022 by 2.90%.
- Franchising in Iowa is expected to create an additional 821 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 up to 300,000 jobs.
- Franchised establishments in the Personal Services sector are predicted to lead the growth in 2022, followed by Commercial & Residential Services.