STATE PROFILE: High Interest in Food, Personal Care Rank Nevada 2nd in Franchise Interest Index™
Exceptionally high interest in discretionary-spending franchises like restaurants, spas and salons helped drive Nevada near the top of the Franchise Interest Index ™ in 2019 and again in the first quarter of this year.
Nevada ranked No. 2 in adult per-capita interest in potential franchise ownership last year, accounting for 1.6% share of inquiries through the FranchiseVentures demand-generation platform in 2019. But as the nation’s 34th largest state by adult population, with 2.8 million adults over the age 22, Nevada’s per-capita interest indexed 71% higher than average last year. And in Q1 2020, Nevada captured the No. 1 rank for adult per-capita interest in buying a franchise, indexing 89% above average.
Tourist Economy Drives Franchise Interest in Nevada
Las Vegas tourism is an obvious driver of the Nevada economy, and related franchise categories drew outsized interest from prospective franchisees in 2019. In fact, Las Vegas ranked No. 4 among major metropolitan areas for adult per-capita franchising interest last year.
- Top Franchise categories ranked by volume – The most-requested businesses by total volume in Nevada mirrored overall trends for top categories of franchises, with Food and Restaurant franchises as the most popular, attracting 23.9% of the inquiries in 2019, followed by Home Services franchises at 15.1% and Business Services at 10.6% .
- Top categories by relative interest – Compared with other states over 2 million in adult population, Nevada ranked No. 1 for Food and Restaurant franchises, with 21.5% more investment inquiries than the national average. Nevada also ranked No. 1 for Personal Care franchises, with 40.5% more interest than average. The state also ranked No. 4 for Automotive franchises, with 27.8% higher-than-average interest in potential franchise ownership. Travel and Lodging franchises also drew above-average interest, but only 5.5% above the norm.
Demographic Profile of Potential Franchise Buyers in Nevada
The Silver state was also notably strong in its representation of the small but well-funded Senior demographic. Here is a demographic profile of Nevada prospects who contacted franchisors through the FranchiseVentures demand-generation platform in 2019:
- Age – Generation X prospects, ages 39 to 54, comprised 46.2% of Nevada adults making an investment inquiry to a franchise last year. That’s 1.5% higher than the national average for Gen X. Prospects aged 74 or older made 5.8% of Nevada investment inquiries – the Seniors indexed 50.8% higher than average and ranked No. 4 among states with more than 2 million adults. Baby Boomers were 26.5% of Nevada’s prospects, and Millennials aged 23- to 38-years old were 16.9% of the total.
- Household income – 30.3% of Nevada prospects had household income of $100,000 or more, and 57.8% are married.
- Homeownership – 70.7% of prospects in Nevada own a home, and 63.1% have been in residence for 5 years or longer.
- Home value is estimated over $250,000 for 42.8%, and over $500,000 for 12.9% of prospects.
- Liquid assets – 21.5% had income-producing assets over $75,000, and 3.9% had liquid assets over $500,000.
Top Franchise Categories in Nevada, 2019
(100 = national average)
|Food & Restaurant||23.9%||121.5|
|Cleaning & Maintenance||8.5%||94.3%|
|Senior and Health Care||8.1%||81.8%|
|Health & Fitness||3.8%||80.9%|
|Travel & Lodging||3.7%||105.5%|
|Sports and Recreation||0.7%||77.4%|
For this analysis, Franchise Insights combined proprietary data from the FranchiseVentures’ demand-generation platform with demographic data from Alliant, a leading provider of U.S. consumer audience targeting and data enrichment and predictive analytics.
The Franchise Insights analysis is drawn from FranchiseVentures, the leading demand generation platform for potential franchisees to thousands of growing franchise systems in the United States and Canada. Its franchise lead-generation brands include Franchise.com, Franchise Solutions, Franchise Gator, Franchise Opportunities, Franchise For Sale, and BusinessBroker.net, and together they provide the largest aggregation of prospective franchise buyers in the U.S.
Interested in more insights from our proprietary data set? Subscribe to our email newsletter below, or follow us on LinkedIn.
Published on Wednesday, June 3rd, 2020.