Arizona is Projected to be Among Top States for Franchise Growth this Year. Here’s Why

Article originally posted on HERE on February 20, 2024

Thousands of people attended the International Franchise Association’s annual convention in downtown Phoenix.

Inside the Phoenix Convention Center, hundreds of suppliers filled the exhibit hall offering ways to boost efficiency, profits and productivity, including payroll services, marketing and apparel.

Matt Haller, president of the International Franchise Association, said more than 300 industries use franchising — everything from fast food and kitchen cabinets to chiropractic and childcare.

“People don’t recognize that franchises are actually locally owned,” he said. “It’s just a growth strategy that a business a brand chooses to embark upon, and leverage individual local knowledge and other people’s capital to open a business within the confines of that franchise agreement.”

The group’s annual forecast lists Arizona as eighth among states for growth this year, due to increasing population and lower regulations compared with other states.

“Arizona is a very pro franchising state, from a regulatory standpoint,” Haller said. “Arizona is not a state that further regulates above and beyond what the Federal Trade Commission’s disclosure laws require.”

Personal services — including health and beauty, child and pet-related sectors — are expected to be among the fastest growing industries for franchises this year at 3%, followed by quick service restaurants at 2.2%.

According to the association’s data, Arizona had 18,134 franchises in 2023 and is projected to grow 2.3% in 2024, to 18,559. The group’s report shows 2024’s highest growth estimates in the Southeast (3.5%) and Southwest (3.5%) regions.