Maryland is solidifying its place as a hub for franchise development, being named among the top 10 fastest-growing states for franchise expansion in 2025. The announcement comes amid a strong nationwide surge in franchising activity, with the sector expected to outpace the broader U.S. economy this year.
Nationwide, the number of franchise establishments is projected to grow by over 20,000 units — a 2.5% increase — reaching a total of 851,000 units. Employment in the franchising sector is also set to rise, with approximately 210,000 new jobs anticipated, pushing total franchise employment beyond 9 million. In 2024 alone, franchising added more than 189,000 jobs, reflecting a growth rate of 2.2%.
Economic output from franchises is expected to exceed $936.4 billion in 2025, a 4.4% jump from the $896.9 billion reported in 2024. Franchise GDP is projected to grow at a robust pace of 5%, reaching $578 billion. These numbers reflect a growth trajectory that surpasses the U.S. economy overall, which the Congressional Budget Office forecasts will expand by just 1.9%.
Certain sectors are driving this rapid franchise expansion, with personal services and retail food, products, and services leading the way. These industries are expected to see growth rates of 4.3% and 3.5%, respectively.
Regionally, the Southeast and Southwest are set to outpace the rest of the U.S. in franchise market growth, fueled by business-friendly policies and a lower cost of living. Output in these regions is forecasted to grow by 6.2% and 8.5%, respectively.
Maryland joins an elite group of states recognized for dynamic franchise growth, alongside Georgia, North Carolina, Virginia, Arizona, South Carolina, Pennsylvania, Tennessee, Florida, and Colorado. Maryland’s strong economy, strategic location, and supportive business environment continue to make it an attractive destination for franchise investment.
As franchises expand and diversify across Maryland, local communities can expect to benefit from new job opportunities, increased economic activity, and a broader range of goods and services. This franchise boom promises to contribute significantly to the state's overall economic health.
