Smaller States Post Big Gains in Q4 Growth of Franchise Interest Index™

Alaska, Hawaii lead overall gains, Georgia tops growth among large-population states

Small- and mid-sized states with adult population under 5 million showed some of the strongest year-over-year growth in franchise-buying interest, according to the latest data  from Franchise Insights. And among the largest states, Georgia tops the Franchise Interest Index™ for both overall interest and for Q4 growth over the previous year.

The Franchise Interest Index™ reveals the relative interest of entrepreneurs making an investment inquiry by indexing proprietary data with states’ adult population on a per capita basis. An index of 100 indicates average per-capita interest, while an index of 120 represents 20% higher-than-average interest. The Franchise Insights proprietary data is drawn from the Franchise Ventures flow of franchise-investment inquiries in the United States.

For this analysis, each state’s Franchise Interest Index™ from Q4 2019 was compared to Q4 2018 to determine relative change.

  • Alaska showed the greatest gain in Q4, increasing its score 48.3% to an Index score of 89.2. Other small states showing top 10 gains were Hawaii (up 32%), Idaho (up 21.4%), Kansas (up 19.1%), and Maine (up 15%).
  • Minnesota was No. 4 for Q4 growth overall, growing its per capita score by 22.7%, and leading mid-sized states with adult population between 5 and 10 million. Other mid-sized gainers were Virginia (up 19.9%), Massachusetts (up 18.8%) and Arizona (up 11.9%).

Among large states with adult population over 10 million, Georgia was the only top 10 gainer, increasing its index score 17.4% to 179.6 for Q4. Georgia’s above-average franchise interest made it the top state in the Franchise Interest Index™ for all of 2019 as well as Q4.

 

Rank.StateYOY change in Q4 index
1.Alaska48.3%
2.Hawaii32%
3.Minnesota22.7%
4.Idaho21.4%
5.Virginia19.9%
6.Kansas19.1%
7.Massachusetts18.8%
8.Georgia17.4%
9.Maine15%
10.Arizona11.9%
11.Tennessee11.5%
12.Ohio10.1%
13.South Carolina9.5%
14.Mississippi9.1%
15.Wyoming9%
16.Pennsylvania8%
17.Illinois7.9%
18.Delaware7.7%
19.West Virginia7.3%
20.Kentucky7.3%
21.Indiana5.4%
22.Nevada4.8%
23.Arkansas4.1%
24.Alabama4%
25.Oregon3.3%
26.Montana2.6%
27.North Carolina2%
28.New Mexico0.8%
29.California0.7%
30.Texas0.7%
31.Wisconsin0.1%
32.Florida-1%
33.Oklahoma-2.2%
34.Maryland-2.4%
35.Connecticut-2.4%
36.Michigan-2.8%
37.New York-3%
38.Utah-4.9%
39.Louisiana-5.4%
40.Colorado-5.6%
41.New Jersey-7.3%
42.Missouri-10.7%
43.Nebraska-14.9%
44.Iowa-15.8%
45.New Hampshire-19.4%
46.South Dakota-25.3%
47.Washington-26.2%
48.Rhode Island-31.8%
49.North Dakota-37.2%
50.Vermont-65.3%

Franchise Ventures is the largest demand generation platform serving  thousands of growing franchise systems in the United States and Canada. Its franchise lead-generation businesses include Franchise.com, Franchise Solutions, Franchise Gator, Franchise Opportunities, Franchise For Sale, BusinessBroker.net, and SmallBusinessStartup.com and together they provide the largest collection of prospective franchise inquiries in the U.S.

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Published on Thursday, February 20th, 2020.

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