Michigan added 396 new franchise businesses in 2021 and expects to add another 139 in 2022, according to a new report by the Washington, D.C.-based International Franchise Association.
The number of franchised establishments in the state grew to 22,029 during 2021 and is expected to increase to 22,168 this year, the 2022 Franchising Economic Outlook Economic says. Output by franchises in Michigan grew at a record rate of 15.3 percent in 2021, with an increased output of $19.56 million. Output growth is expected to continue into 2022 by 3.30 percent.
In addition, franchising employment in Michigan grew at a rate of 7.7 percent with 16,897 new jobs created in 2021. Franchising in the state is expected to create an additional 3,634 career opportunities in 2022.
“It’s no surprise that these local businesses are helping lead Michigan’s economic recovery from the pandemic,” says 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 an 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.
Nationally, following 2020 shutdowns, output for franchises rebounded by more than 16 percent in 2021, reaching nearly $788 billion in output.
Other national highlights from the report include:
- 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 percent.
- Franchises’ GDP contribution to the overall economy will remain stable at 3 percent in 2022, but the growth rate is likely to slow to 5.7 percent, still higher than the pre-pandemic level.
- In 2021, franchise employment increased by 8.8 percent — adding more than 46,000 jobs per month. Franchise employment is forecasted to grow at a slightly lower rate of 3.1 percent 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 and residential services.
To review the full report, visit here.