Key Takeaways from the Guidant Financial Franchise Trends Study

Our team at Franchise FastLane is committed to staying up-to-date on the franchising industry trends, news, and details to help franchisees and franchisors make informed decisions about their business ventures. We recently reviewed a franchise survey conducted by Guidant Financial – one of the top franchise funding solutions in the industry. This annual report delves into the world of small business and shares data from hundreds of small business and franchise owners in the U.S. Let’s explore the latest and growing trends of 2023 from this year’s survey.

Franchise Owners are Proactive

Of all the respondents in Guidant Financial’s survey, only 13% shared that they got into franchise ownership because of a layoff or downsizing event. More than half – 53% - took the initiative into their own hands and decided to explore franchise ownership because they were either tired of life in Corporate America, or they were simply ready to follow through on a lifelong desire to own a business of their own.

Demographic Snapshots

Which key demographic is doing the majority of franchise purchasing? That would be Generation X, those born between 1969 and 1982, who account for half of all new franchise owners. They’re followed by Baby Boomers (37.9%) and then Millennials (12.1%). Seven in 10 were male, and 29% were female. While Caucasians made up the majority of new franchisees, the participation level for Blacks, Hispanics, and Asians were up across the board from last year’s totals.

Top States for Franchising?

Where is the action the hottest for new franchisees? Well, they say everything is bigger in Texas, but the Lone Star State actually placed second on the list, with 6% more growth year-over-year. The top spot goes to California, with an 8% increase. The remaining states in the top five were Florida (6%), Georgia (3%), and Ohio (2%).

Are Franchise Owners Happy?

If the results to this question weren’t positive, the team at Franchise FastLane would have a hard time sharing the news. But in fact, the opposite is true! By and large, today’s franchise owners are a happy bunch. 64% of all respondents shared that they’re either “somewhat” or “very” happy as entrepreneurial business owners. Only 21% reported being either very unhappy or somewhat unhappy. More than three-quarters of all new franchise owners bought a brand new business, and only 23% bought an existing franchise from another owner.

Are Franchise Owners Profitable?

The categories above represent a nice, even snapshot of recent franchise owners. From Guidant Financial’s recent survey, we can learn quite a bit about who they are, where they live, and how they feel about entrepreneurship. But how about performance? We’re happy to share that this was another bright spot in the report. A significant majority – over 60% - reported that their franchise operations are profitable – not bad for these first-year business owners! Most small businesses outside of franchising take between three and four years to break even and become profitable.

When all data is considered, one could make the argument that there’s never been a better time to be involved in franchising. To date, there are approximately 805,000+ franchise establishments in the U.S., employing some 1.5 million workers, with an output of $825 billion (2021-2022 figures). Now that’s how Franchise FastLane spells success!

Are You Ready to Explore Franchise Ownership?

Franchise FastLane has qualified and vetted the best 25+ brands in the industry that are ready for responsible, accelerated growth. To learn more about the brands in our portfolio, explore our brands page today. To keep up with all the latest happenings, make sure you follow us on LinkedIn, like us on Facebook, and check out our collection of photos on Instagram.