OKLAHOMA (OBV) – Oklahoma has seen continuous growth in franchise establishments over the past few years and that growth is expected to continue this year.
The International Franchise Association recently released its 2023 Franchising Economic Outlook.
The report shows that Oklahoma had an estimated 10,291 franchise establishments in 2022 and is projected to have 10,445 in 2023. The state had 9,923 franchises in 2020 and 10,139 in 2021, according to the report.
Franchise establishments are defined as businesses that are owned and operated by a franchisee, the term for an individual who buys the right to operate a business under a franchisor’s brand name and system. McDonald’s, Whataburger, Burger King, Pizza Hut and Taco Bell are some of the many popular franchises in Oklahoma.
Oklahoma’s franchise growth expanded the state’s workforce. The state is estimated to have had 109,863 franchise employees in 2022 and is projected to have 112,727 franchise employees in 2023. Oklahoma had 99,162 franchise employees in 2020 and 107,182 such workers in 2021.
The growing number of franchises in the state has resulted in greater and greater economic output, from $8,916,000 in 2020 to $10,306,000 in 2021 to an estimated $10,745,000 in 2022 to a projected $11,155,000 in 2023.
Franchises saw remarkable growth and recovery across the nation in 2021 but experienced a period of moderation in 2022. Franchise establishments faced economic challenges in 2022, including high inflation, labor shortages and supply chain issues. Moderation is carrying over into 2023, according to Franchising Economic Outlook.
The franchise business model was able to withstand economic uncertainty initiated by the COVID-19 pandemic. Fifty percent of franchisees who responded to the IFA/FRANdata 2022 Franchisee Inflation Survey said their franchise network’s support helped them navigate inflationary pressures and other business challenges during the pandemic.
Key franchise forecasts for 2023 are as follows:
- Franchise establishments will increase by almost 15,000 units, or 1.9 percent, to 805,000 units overall.
- Franchising will add approximately 254,000 jobs in 2023. Total franchise employment is forecasted to grow 3 percent, reaching 8.7 million.
- Total franchise output will increase by 4.2 percent, from $825.4 billion in 2022 to $860.1 billion in 2023.
- Franchises’ GDP will grow at a 4.2 percent pace to $521.3 billion.
- Franchises’ GDP share of the overall economy will remain stable at 3 percent.
- Service-based industries and quick service restaurants (QSRs) will see higher growth than other industries.
- Texas is expected to see the most franchise activity growth in 2023. Growth in the Southern U.S. will outpace the rest of the U.S. franchise market.
Each state’s franchising growth in 2023 will remain varied based on labor availability, infrastructure investments and business climate. The expected 2023 growth in the Southeast and Southwest regions – which saw positive migration trends, large industry investments and strong labor markets – will outpace the rest of the U.S. Each region is expected to grow in 2023, but Northeast region growth will be muted at approximately 0.8 percent, according to the report.
Click here for more information about the full 2023 Franchising Economic Outlook.