Business Brokers: Why 2023 is a Year of Franchise Opportunity

The franchising landscape is ever-evolving, and as business brokers, staying ahead of the curve is crucial for effective lead generation and marketing. The 2023 Franchising Economic Report provides an in-depth analysis of the franchise outlook, offering valuable insights to help business brokers navigate the upcoming year.

Franchise Establishment Growth

The report predicts a 1.9% increase in franchise establishments in 2023, adding almost 15,000 units to 805,000.

Broker's Analysis: As a business broker, you always seek opportunities to expand your client's portfolio. This projected growth is not just a statistic; it's a sign of the potential within the franchising sector. By focusing your marketing efforts on emerging franchises, you can generate high-quality leads and help your clients tap into new markets. Remember, every new franchise establishment is a potential lead waiting to be discovered.

Franchise Employment Growth

Franchising is expected to add approximately 254,000 jobs in 2023, with total franchise employment forecasted to reach 8.7 million.

Broker's Analysis: This employment growth is more than just numbers; it's a testament to the vitality of the franchising sector. As a business broker, you can use this data to paint a picture of a thriving industry creating jobs and contributing to the economy. Highlighting the job creation potential of franchising can attract investors looking for profitable and socially responsible investment opportunities. It's not just about selling a franchise; it's about selling the opportunity to make a difference.

Franchise Output Growth

The total franchise output is expected to increase by 4.2%, from $825.4 billion in 2022 to $860.1 billion in 2023.

Broker's Analysis: As a business broker, you know that profitability is a key concern for your clients. This projected growth in output is a clear indicator of the profitability of the franchising sector. Use this data in your lead generation efforts to attract potential franchisees and investors. Show them the potential returns on their investment and help them see the value in franchising.

Industry Overview

The report highlights that service-based businesses and quick service restaurants (QSRs) are expected to outpace the rest of the franchising sector, with a projected growth of 2.5% in 2023.

Broker's Analysis: As a business broker, understanding these industry trends is crucial for tailoring your marketing strategies. If you know that service-based businesses and QSRs are rising, you can target potential franchisees interested in these sectors. Use this information to guide your clients toward the opportunities that are most likely to yield success.

State Franchise Outlook

Texas is expected to witness the most growth in franchise activity in 2023, with the Southern U.S. outpacing the rest of the U.S. franchise market.

Broker's Analysis: This geographical data is more than just a map; it's a roadmap to success for your clients. As a business broker, you can use this information to guide your clients toward the most lucrative franchise opportunities. Focus your marketing and lead generation efforts on these high-growth areas and help your clients find the best opportunities.

The 2023 Macroeconomic Situation

The report discusses various macroeconomic factors that will impact franchising in 2023.

These include employment and wages, consumer spending and confidence, household wealth, interest rates and small business lending, business investment, and the U.S. housing market.

Broker's Analysis: As a business broker, you're not just selling franchises; you're selling a vision of the future. Understanding these macroeconomic trends can help you provide better advice to your clients and adjust your marketing strategies accordingly. Use this information to paint a picture of the economic landscape in 2023. Show your clients how these trends could impact their investment and help them make informed decisions.

Conclusion

The 2023 Franchising Economic Report provides a wealth of information that can benefit business brokers. By understanding the franchise outlook 2023, you can tailor your lead generation and marketing strategies to take advantage of the emerging trends and opportunities in the franchising sector. Remember, as a business broker, your success is tied to your client's success. Use this information to guide them toward the best opportunities and help them achieve their business goals.