Top-Ranked States Grow At Slower Pace in 2020 As Mid-Sized States Heat Up in Franchise Interest Index™
Feb. 9, 2021 – Georgia and Nevada continued to generate the nation’s highest adult per capita interest in buying a franchise in 2020, according to the latest data from the Franchise Interest IndexTM , but that interest grew at a slower rate amid the pandemic. Meanwhile, smaller states in the Midwest and Mid-South saw double-digit gains in the Index compared to the previous year. Looking at year-over-year changes removes seasonal variations and gives a view of longer-term trends, though the pandemic would have certainly had an impact in 2020.
The Franchise Insights Franchise Interest IndexTM 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 IndexTM score of 194 for 2020. That’s up 4.3% from 2019, which had seen per-capita interest grow 14.8% over 2018.
- Nevada ranked No. 2 for franchise interest with an index of 178, up 3.5% from the previous year, and slowing from 2019’s growth rate of 12.4%.
- Florida held steady at No. 3 with a score of 161, down 0.6% from its 2019 index. This performance is particularly impressive, given the state’s adult population at just under 20 million, the third highest in the United States.
- Louisiana was No. 4, indexing at 139 and moving up from the No. 9 spot in 2019.
- Maryland rounded out the top 5 with a score of 134, up 3.9% from the previous year.
States with Above Average Growth in Franchise Interest
It is not unusual to see higher growth rates among smaller states, and economic conditions in some states may have fueled further interest in owning a business.
- Among states with more than 2 million in adult population, Oklahoma logged the highest annual change, gaining 22.2% for an index of 88. Mississippi’s interest grew 20.4 for an index of 124, and Louisiana ranked third for growth, gaining 13.9% last year.
- Among states with more than 5 million in adult population, Alabama’s franchising interest grew 7.3% for an index of 117, Pennsylvania logged a 6.4% gain, and Ohio grew 4.9%.
Top 25 States Ranked by Franchise Interest Index (TM)
| . | State | Franchise Interest Index 2020 | Annual change in INDEX |
|---|---|---|---|
| 1. | Georgia | 194 | 4.3% |
| 2. | Nevada | 178 | 3.5% |
| 3. | Florida | 161 | -0.6% |
| 4. | Louisiana | 139 | 13.9% |
| 5. | Maryland | 134 | 3.9% |
| 6. | South Carolina | 133 | -2.2% |
| 7. | Texas | 128 | -2.3% |
| 8. | Mississippi | 124 | 20.4% |
| 9. | New Jersey | 122 | -3.2% |
| 10. | Delaware | 121 | -3.2% |
| 11. | Alabama | 117 | 7.3% |
| 12. | North Carolina | 109 | -2.7% |
| 13. | Virginia | 101 | -2.9% |
| 14. | Arizona | 97 | -3.0% |
| 15. | Tennessee | 95 | 4.4% |
| 16. | Colorado | 94 | -6.0% |
| 17. | California | 90 | 2.3% |
| 18. | Oklahoma | 88 | 22.2% |
| 19. | New York | 86 | 0% |
| 20. | Ohio | 86 | 4.9% |
| 21. | Illinois | 85 | 3.7% |
| 22. | Utah | 85 | -4.5% |
| 23. | Arkansas | 84 | 1.2% |
| 24. | Michigan | 83 | -1.2% |
| 25. | Pennsylvania | 83 | 6.4% |
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Published on Tuesday, February 9th, 2021.