--- title: "2021 Post-Covid Economic Outlook Sees Growth Ahead for Franchising" url: https://burnaze.com/article/eca72c48-7b80-4990-a331-e554ae7306e3 source: "Franchising.com" original_url: https://www.franchising.com/articles/2021_postcovid_economic_outlook_sees_growth_ahead_for_franchising.html author: "Eddy Goldberg" category: "Franchise Industry" industry: "Franchise Industry" topics: ["Finance & M&A"] published: 2021-04-01T12:00:00.000Z modified: 2026-11-01T02:29:06.103Z image: https://imgs.franchising.com/art/articles/5886_plate.jpg --- # 2021 Post-Covid Economic Outlook Sees Growth Ahead for Franchising **TL;DR:** The IFA's Economic Outlook for Franchising webinar series predicts growth for the franchising industry in 2021, with a near-term GDP boom and a return to slow growth. The total number of franchised establishments is expected to grow at a rate of 3.5%, with a net gain of 26,000 businesses by the end of 2021. *By Eddy Goldberg, originally published in Franchising.com on 2021-04-01. [Read the original](https://www.franchising.com/articles/2021_postcovid_economic_outlook_sees_growth_ahead_for_franchising.html).* ## Story A recent session of the IFA’s webinar series, Economic Outlook for Franchising, took a look into what the U.S. economy likely holds for franchising in 2021 as the country climbs out of the “Covidoldrums.” 1) Big picture outlook A near-term GDP boom followed by a return to slow growth Labor: a quick recovery with unemployment rates under 5% by year-end The economy returning to its pre-pandemic payroll level well before year-end 2022 A rising inflation rate in a year or two, which will allow some pricing flexibility for the first time in years. A low interest rate environment for the foreseeable future 2) 2021 franchise business growth By year-end, franchising will have recovered to nearly 2019 levels in most metrics: business growth, employment, economic outlook, and contribution to GDP The total number of franchised establishments is expected to grow at a rate of 3.5%, a net gain of 26,000 businesses with a total of 780,188 franchise establishments in 2021, 6,585 units higher than 2019’s pre-Covid level. Franchise employment is forecasted to add approximately 800,000 jobs in the U.S. with the hiring of 8. 3 million workers by the end of 2021. Much of this new employment will be in the retail, food, and services industries and for lower-skilled workers. Franchising sales are expected to experience their highest upswing since the last recession. 3) Growth sectors Commercial & residential services Real estate Retail food, products & services Business services 4) Recovering sectors Lodging Personal services (beauty salons, massage & spa studios, gyms, recreational facilities, child-related services, etc.) QSRs and table/full-service restaurants 5) Roadblocks to future growth Permanently changed consumer behavior Acceleration of technology adoption Increasing minimum wage impact AB5 Rule/PRO Act/Joint Employer Learn more about the IFA Economic Outlook webinar series, which continues through April 20, and download the full IFA report here. ## Entities - Franchising.com (publication) - franchise growth (topic) - Franchise Industry (sector) - Eddy Goldberg (person) - IFA (company) - industry trends (topic) - economic forecast (topic) - post-covid economic outlook (topic) --- Originally reported by Eddy Goldberg, Franchising.com (https://www.franchising.com/articles/2021_postcovid_economic_outlook_sees_growth_ahead_for_franchising.html). Summarized by Burnaze (https://burnaze.com/article/eca72c48-7b80-4990-a331-e554ae7306e3).