The personal service sector is one of the fastest-growing fields for small business ownership, according to a newly released Franchise Business Economic Outlook report from the International Franchise Association.
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Personal service businesses that are currently booming include education, beauty, health and fitness. These establishments are also expected to see continued growth in the franchising field this year.
“The franchise industry is responsible for creating tens of thousands of opportunities for small business ownership across the country and millions of jobs for Americans,” said Robert Cresanti, IFA’s president and CEO via the report’s executive summary.
The IFA’s report included data from franchise advisory firm FRANdata to qualify the personal service sector as a top performer. Funnily enough, this sector beat out quick-service and full-service restaurants in growth, which turned out to be the second fastest-growing.
Personal services are not just seeing a spike in the number of franchise establishments, but it is also seeing rapid employment growth. For 2020, the sector’s number of establishments is projected to grow by 4.7 percent for a total of 124,394 businesses while the sector’s number of employees is projected to grow by six percent for a total workforce of 580,070 strong.
This growth is projected to result in a $41.1 billion output in the U.S., according to the report’s findings. Increased consumer spending and disposable income are also credited as factors for the personal service industry’s success.
In the healthcare and fitness category, the personal service industry is being driven by brands like Orangetheory Fitness, Anytime Fitness, Planet Fitness and The Joint Chiropractic – which have “experienced extensive growth for the past three years, and are forecast to continue the upward trend in 2020.”
Similarly, beauty-related services have seen an increase in demand with franchises like European Wax Center and Great Clips. Childcare is another big category for the sector.
The states that are expected to see the highest growth in the number of franchise establishments and employment for 2020 are Texas, Colorado, Arkansas, Florida, Idaho, Tennessee, Georgia, North Carolina, South Carolina and Nevada.
“Without a doubt, franchising plays a major role in our economy and we forecast that most franchise businesses will sustain robust growth in 2020,” said FRANdata CEO Darrell Johnson in an official statement regarding the report. “Our team produced an insight-driven forecast for 2020 based on detailed analysis of economic and industry performance trends.”