Which U.S. states have the most franchise growth? According to the 2026 Franchising Economic Outlook from the International Franchise Association (IFA) and FRANdata, the 10 states with the highest projected franchise growth are Texas, Florida, Georgia, Arizona, North Carolina, Colorado, Michigan, Utah, Ohio and Maryland.
In this guide you will see what the report says, why the Southeast and Southwest lead franchise growth, which sectors are expanding most and how to use this information to choose where to invest.
The right state is not just the one growing fastest, but the one that fits your brand, your budget and your life plan in the United States.
Franchise growth in the U.S. in 2026
The IFA projects a year of steady franchise growth:
- Establishments: from 832,521 to about 845,000 units, an increase of 1.5%.
- Employment: more than 150,000 new jobs (1.8%), to nearly 8.9 million jobs.
- Economic output: from $907.3 billion to $921.4 billion (1.6%).
- Sector GDP: from $549.9 billion to $558.4 billion (1.8%), nearly 3% of U.S. GDP, according to FRANdata.
- New businesses: more than 12,000 new franchised businesses projected for 2026.
The 10 states with the most franchise growth
| Rank | State | Region |
|---|---|---|
| 1 | Texas | Southwest |
| 2 | Florida | Southeast |
| 3 | Georgia | Southeast |
| 4 | Arizona | Southwest |
| 5 | North Carolina | Southeast |
| 6 | Colorado | West |
| 7 | Michigan | Midwest |
| 8 | Utah | West |
| 9 | Ohio | Midwest |
| 10 | Maryland | Mid-Atlantic |
Source: IFA and FRANdata, 2026 Franchising Economic Outlook. The report presents the ranking, not individual figures by state. Michigan, Utah and Ohio enter the top 10 for the first time.
Texas: the franchise growth leader
Texas tops the franchise growth list. It is a large, diverse market with several expanding metro areas and no state personal income tax, factors many investors weigh when choosing a location.
Florida: a gateway for Latin American investors
Florida ranks second. For investors from Latin America it is often a natural choice because of its cultural connection, the widespread use of Spanish and its proximity to the region. It also has no state personal income tax.
Georgia and North Carolina: the Southeast’s momentum
Both states reflect the franchise growth of the Southeast, the region with the largest share of the sector.
Arizona, Colorado and Utah: the push from the West and Southwest
Arizona confirms the dynamism of the Southwest, while Colorado and Utah represent franchise growth in the West.
Michigan, Ohio and Maryland: new opportunities
The entry of Michigan and Ohio shows that franchise growth is also reaching the Midwest. Keep in mind that Maryland and Michigan are among the states with additional FDD registration or notice requirements, which can add protections for franchisees.
Why do the Southeast and Southwest lead?
According to FRANdata, the Southeast accounts for nearly 30% of all U.S. franchise establishments, with projected output of $274.9 billion and employment growth of 2.0%. The Southwest posts the strongest year-over-year growth: 2.5% in establishments, 2.8% in employment and 2.5% in output. The Midwest, Northeast and West grow roughly 1.1% to 1.4%.
Sectors with the most franchise growth
| Sector | Projected 2026 growth |
|---|---|
| Child services and commercial & residential services | 3.2% |
| Retail food, products and services | 2.3% |
| Health & wellness | 2.1% |
| Full-service restaurants | 2.0% |
| Personal services and lodging | 1.8% |
| Business services | 1.6% |
| Quick-service restaurants (QSR), automotive and real estate | Below 0.5% |
A notable data point: full-service restaurants are expected to outpace quick-service restaurants in output growth for the first time since the pandemic. In addition, according to FRANdata, 19.3% of franchisees operate multiple units and control 58.8% of franchised locations.
How to choose a state to invest in a franchise
- Start with the brand, not the state: confirm which states have available territories.
- Analyze local demand: population, household income and competition in the territory.
- Compare costs: commercial rent, wages, taxes and insurance vary widely between states.
- Review state regulation: some states require FDD registration or have franchise relationship laws.
- Think about your family life: schools, language, climate and flights to your home country.
- Talk to Item 20 franchisees operating in the state you are interested in.
Franchise growth in a state does not guarantee the success of a specific unit. Use the ranking as a starting point and validate each opportunity with data. You may find our guides on how to tell if a franchise is profitable and what a franchise FDD is useful.
Franchise growth and investor visas
If your goal is to live in the U.S., the state you choose will shape your daily life and your business plan. With an E-2 visa, for example, the business must be operating or actively in the process of starting and cannot be marginal. No location guarantees visa approval. An FBA-certified franchise broker can help you compare brands with territories available in the states you are considering. Also review the requirements to invest and our franchise cost guides.
Frequently asked questions
What is the best state to open a franchise?
It depends on the brand, the sector and your budget. Texas and Florida lead projected franchise growth for 2026, but the best state for you is the one that combines demand, reasonable costs and an available territory.
Is Florida a good option for Latin American investors?
For many, yes, because of cultural proximity and language. Still, compare rent costs and competition in the exact area where you would open.
Which franchise sector is growing the most?
According to the IFA, child services and commercial and residential services, with projected growth of 3.2% in 2026.
Can I buy a franchise in one state and live in another?
It is possible with some models, but if you invest with an E-2 visa you will need to direct and develop the business, so living near the operation is advisable.
Want to know which state fits your investment?
We help you interpret franchise growth data, compare brands and territories and connect your investment with your immigration plan.
Sources and recommended reading
- IFA: 2026 Franchising Economic Outlook
- FRANdata: U.S. Franchising’s Economic Outlook in 2026
- IFA: IFA Predicts Steady Growth for Franchising in 2026
- FTC: Franchise Rule
- Franchise Brokers Association (FBA)
This content is for informational purposes only and does not constitute legal, financial or immigration advice. Each case must be evaluated individually, and no investment guarantees results or visa approval.
