Franchise Statistics Bureau · 2026-02
Which US regions are growing fastest for franchising?
Figures are published by third parties, compiled as-is, and may change. We do not independently verify the underlying data — check the source before acting on it. For reference only; not legal, tax, or investment advice.
+2.5%
Southwest growth
The Southwest (+2.5%) and Southeast (+1.7%) are projected to remain the top US regions for franchise expansion in 2026.
The Southwest is projected to lead on establishments (2.5%), employment (2.8%) and output (2.5%). FRANdata notes that growth differs widely by state, shaped by business climate, migration patterns, infrastructure and industry mix (IFA/FRANdata).
What this figure measures
The figure is the projected 2026 growth rate for the Southwest, one of five US regions in the report alongside the Northeast, Midwest, Southeast and West. In the report's regional breakdown the Southwest's 2.5% applies to both franchise establishments and franchise output, with employment projected to grow faster. The Southeast's 1.7% is its projected growth in establishments. Both are forecasts, not recorded results.
How it was produced
FRANdata prepared the regional projections within the International Franchise Association's 2026 outlook, which also includes a state-by-state outlook. Regional rates come from the same proprietary model that extrapolates 2025 estimates using brand-level data, disclosure documents and macroeconomic indicators. The report attributes the Sun Belt lead to business-friendly policies, lower cost of living, and population growth and relocation.
What it does not tell you
A faster rate does not mean more new units: the report's 2025 regional figures give the Southeast roughly twice as many establishments as the Southwest, so its lower rate applies to a much larger base. Regional averages can hide wide differences, and the report notes that growth differs widely from state to state. The rates are projections for 2026 and cover the United States only.
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