Southern States Maintain Top Rank in Q3 Franchise Interest Index™ As Midwestern States Lead Growth Rate
Nov. 4, 2020 – Georgia, Nevada and Florida continued to lead the nation with the highest adult per capita interest in buying a franchise in Q3 2020, according to the latest data from the Franchise Interest Index(TM), and all three saw per-capita franchise interest grow from Q2 to Q3 as the economy regained ground that had been lost during early months of the pandemic.
At the same time, Midwestern states like Wisconsin, Michigan and Illinois posted the largest quarterly gains in franchise interest among large- and mid-sized states.
The Franchise Insights Franchise Interest Index(TM) reveals the relative interest of entrepreneurs making investment inquiries by indexing proprietary data and state-by-state population figures. An index of 100 indicates average interest, while an index of 120 represents 20% higher-than-average interest. This proprietary data is drawn from the FranchiseVentures platform of franchise-investment inquiries in the United States.
States with Above Average Franchise Interest
Two of the top-five ranked states were large Southern population centers, with more than 10 million adults each.
- Georgia ranked No. 1 with twice the average per-capita interest in franchising, logging a Franchise Interest Index(TM) score of 202 for Q3 2020, up 3.6% from Q2.
- Nevada ranked No. 2 for franchise interest with an index of 180, up 7.8% from the previous quarter, and Florida held steady at No. 3 with a score of 169, also up 3.7% from Q2.
- Rounding out the top 5, Louisiana was No. 4 with an index 153, down 1.3% for the quarter, while Maryland displaced Texas for the No. 5 spot, with a score of 135, up 11.5% from Q2.
States with Above Average Growth in Franchise Interest
While Maryland and Nevada enjoyed both above-average franchise interest and above-average growth, the top states for quarterly growth came from those with below-average Franchise Interest scores.
- Among states with more than 2 million in adult population, Wisconsin logged the highest quarterly growth in Q3, gaining 17.8% for an index of 53. Michigan’s interest grew 12.8% for an index of 88, and Illinois ranked third for growth, gaining 12.7% for a Q3 index of 89.
- Maryland was fourth with an 11.6% gain and an above-average score of 135, and Kentucky gained 10.1% in Q3 for a score of 76.
Top 25 States Ranked by Franchise Interest Index (TM)
| . | State | Franchise Interest Index Q3 2020 | Q2-Q3 change in INDEX |
|---|---|---|---|
| 1. | Georgia | 202 | 3.6% |
| 2. | Nevada | 180 | 7.8% |
| 3. | Florida | 169 | 3.7% |
| 4. | Louisiana | 153 | -1.3% |
| 5. | Maryland | 135 | 11.6% |
| 6. | South Carolina | 134 | 0.8% |
| 7. | Texas | 130 | -3% |
| 8. | New Jersey | 124 | 4.2% |
| 9. | Mississippi | 123 | -8.2% |
| 10. | Alabama | 113 | -11.7% |
| 11. | North Carolina | 108 | 1.9% |
| 12. | Virginia | 102 | 2% |
| 13. | Arizona | 98 | -4.9% |
| 14. | Tennessee | 92 | -13.2% |
| 15. | California | 91 | -2.2% |
| 16. | New York | 90 | 4.7% |
| 17. | Oregon | 90 | -5.3% |
| 18. | Illinois | 89 | 12.7% |
| 19. | Michigan | 88 | 12.8% |
| 20. | Ohio | 85 | 4.9% |
| 21. | Pennsylvania | 83 | 0% |
| 22. | Colorado | 82 | -13.7% |
| 23. | New Mexico | 80 | -1.2% |
| 24. | Arkansas | 80 | -9.1% |
| 25. | Kentucky | 76 | 10.1% |
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Published on Wednesday, November 4th, 2020.