---
title: "Virginia's Economy & Its Impact on Franchisors"
url: https://burnaze.com/article/31fc72d2-f6ab-4b40-a798-9f06bbe9fa32
source: "1851 Franchise"
original_url: https://1851franchise.com/what-virginias-economic-outlook-means-for-franchisors-2714109
category: "Franchise Industry"
industry: "Franchise Industry"
published: 2020-10-21T17:12:08.000Z
modified: 2026-11-01T01:46:40.243Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/3e6bda4c173bb26c48b2d03a298c10969226.jpg
---

# Virginia's Economy & Its Impact on Franchisors

**TL;DR:** Virginia's economy is relatively diverse and has been ranked 12th among the 50 states for recovery from the COVID-19 pandemic. The state's stable economy may make it an attractive location for franchise development in the coming years.

*originally published in 1851 Franchise on 2020-10-21. [Read the original](https://1851franchise.com/what-virginias-economic-outlook-means-for-franchisors-2714109).*

## Key facts

- Virginia ranks 12th in recovery among states
- The state lost 30,217 in population over ten years
- Franchisors consider regional brand recognition

## Story

Virginia's economy is relatively diverse and does not rely heavily on any one industry for their income. Though agriculture is the top sector in the state, balance is derived from heavy hands in other industries like health care, defense contracting, and software.

Although the state has faced its share of issues under the COVID-19 pandemic, Virginia is currently ranked 12th among the 50 states for recovery. In June, the number of jobless Virginians hit 8.4 percent, a rate that was lower than many other states. It was reported that Virginia revenue projections have stabilized in September, but projections are about $2.5 billion less than originally expected at the beginning of 2020.

Virginia economists have predicted that the state's economy is unlikely to see a boost in revenue until a vaccine for the COVID-19 virus is developed.

## Economic performance

Within the past ten years, Virginia has been outperformed by 21 other state economies. The state lost 30,217 in their overall population in a ten-year span, which led to what was perhaps their best ranking of the three at 29. The state also ranked 25 overall in State Gross Domestic Product, which saw a 33.5 percent growth in ten years.

States that spend and tax less experience higher growth rates than states that spend and tax more. This presents an opportunity for Virginia to grow.

## Franchise development

When it comes to deciding where franchisors should develop their brand, it's always important to look at the complete picture of what the region has to offer. Although in the past Virginia has been in the middle of the pack in performance, its comparatively stable economy in the pandemic may put them ahead in the coming years.

Growing concentrically within the region makes the most sense for some franchise brands to capitalize on brand recognition. Zak Omar, CEO of New York-based wing franchise Atomic Wings, said that their brand recognition in the Northeast is strong and they will focus on expanding up and down the East Coast.

Other franchise brands, such as Sylvan Learning, are looking at demographic data to decide where to focus their franchise development efforts. According to John McAuliffe, Sylvan Learning CEO, they look for areas with a high concentration of families with school-age children whose annual income is $50k or above.

Building out the brand concentrically and regionally where the brand is already known is critical to its growth projection, according to Joe Delatte, President of Home Clean Heroes franchise.

## Entities

- 1851 Franchise (publication)
- Franchise Industry (sector)
- franchise development (topic)
- Sylvan Learning (company)
- Virginia (location)
- John McAuliffe (person)
- Home Clean Heroes (company)
- regional expansion (topic)
- Atomic Wings (company)
- Zak Omar (person)
- state economy (topic)

---
Originally reported by 1851 Franchise (https://1851franchise.com/what-virginias-economic-outlook-means-for-franchisors-2714109). Summarized by Burnaze (https://burnaze.com/article/31fc72d2-f6ab-4b40-a798-9f06bbe9fa32).