Justin Rae, Cinch CEO
- Lower taxes, reduced operating costs, and fewer labor restrictions contribute to franchises’ significant role in the state, according to a national study.
The Magnolia State is poised to experience unprecedented franchise business growth spanning myriad industries and sectors, according to a new national study.
The study, published by Cinch, a franchise marketing software firm, and the International Franchise Association (IFA), ranks Mississippi seventh across the nation in franchise job growth contribution (30.6 percent), outpaced only by South Carolina, Maine, Idaho, Louisiana, Michigan, and West Virginia.
In particular, Mississippi franchise employment is expected to increase by 3.4 percent in 2025, accounting for 6.1 percent of the state’s workforce, or some 77,000 workers.
“In Mississippi, franchise businesses are projected to significantly contribute to the state’s job growth,” said Justin Rae, CEO of Cinch. “While the overall employment growth rate is anticipated to be 0.7 percent between 2023 and 2025, franchise employment is expected to grow by 3.4 percent during the same period, accounting for over 30 percent of the state’s total job growth.”
According to the IFA, franchise business growth is expected to outpace the broader U.S. economy this year, boosted by stronger consumer demand, improved labor supply, and automation software and AI advancements. Franchise economic output is projected to exceed $936 billion and employ more than 9 million workers.
These ubiquitous beacons of the American business landscape – McDonald’s, Chick-Fil-A, Taco Bell, Subway, Marriott, Wyndham, Hilton, 7-Eleven, The UPS Store, among others – will continue to play a significant role in driving job growth and the economy, representing around 9 percent of all U.S. business establishments and nearly 6 percent of total employment. But it’s interesting to note that indoor pickleball courts, escape rooms, cryotherapy centers, and pet grooming services often operate under franchise models.
“At the national level, the fastest-growing franchise sectors include personal services such as fitness centers, beauty salons, and childcare services; retail encompassing various consumer goods outlets; and quick-service restaurants (QSRs), which cover fast-food establishments,” said Rae. “It’s likely that similar patterns will be observed in Mississippi.”
QSRs lead in franchise employment – more than four million workers nationally – while personal service franchises will experience the fastest growth rate at 7.8 percent.
As is the norm, most franchise growth occurs in populous areas, but Rae said some geographic areas might be surprising.
“Although specific geographic data within Mississippi is limited, national trends indicate that franchises are typically more concentrated in urban areas, benefiting from larger consumer bases and higher foot traffic,” he said. “However, rural regions are also experiencing franchise expansions, particularly in the food and beverage sector, as business owners seek underserved and less competitive markets.”
Mississippi v. National
Franchise job growth contribution in Mississippi is 30.6 percent, compared to 11 percent nationally.
Franchise employment share in Mississippi is 6.1 percent, compared to 5.8 percent nationally.
“Franchise employment is particularly strong in the Southeastern U.S., which accounts for nine of the top 10 states with the largest share of franchise workers,” noted Rae. “Several other Southern states—including North Carolina, Tennessee, Florida, and Alabama—also rank among the top 10, underscoring the region’s strong reliance on franchise businesses for jobs.”
Rae attributed the region’s robust franchise presence to lower taxes, lower operating costs, and fewer labor restrictions.
By comparison, franchise employment is least concentrated in the Northeast and on the West Coast, with the District of Columbia projected to have the lowest share of franchise employment this year (1.7 percent), primarily because of higher labor costs and stricter regulations.
Lynne Jeter
