STATE PROFILE: Texas Ranks First in Share of Franchise Inquiries, Fifth in Franchise Interest Index™
May 27, 2020 – While Georgia leads the nation in per-capita interest in potential franchise ownership, another Southern state leads in total volume of interested franchise seekers. Texas ranked No. 1 in 2019 for its 11.3% share of inquiries through the FranchiseVentures demand-generation platform in 2019. That’s not surprising, since it also boasts the nation’s second-largest population of adults over the age of 22.
Texas ranked No. 5 for adult per-capita interest in buying a franchise in 2019. The Franchise Interest Index™ for the state was 31% higher than the national average.
- Top Franchise categories ranked by volume – The most-requested businesses mirrored overall trends for top categories of franchises, with Food and Restaurant franchises attracting 19.8% of the inquiries in 2019, Homes Services franchises 15.2% and Business Services 10.8% .
- Top categories by relative interest – Texas entrepreneurs showed strong interest in Automotive franchises – at 5% of investment inquiries, Automotive indexed 20.7% above average. Other above-average categories were Sports and Recreation franchises (+8.5%), Health and Fitness franchises (+5%), among others.
Demographic Profile of Potential Franchise Buyers in Texas
The Lone Star state was also notably strong in its representation of the Generation X demographic. Here is a demographic profile of Texas prospects who contacted franchisors through the FranchiseVentures demand-generation platform in 2019:
- Age – Generation X prospects, ages 39 to 54, comprised 47.8% of Texas adults making an investment inquiry to a franchise last year. That’s 4.8% higher than the national average for Gen X, and Texas ranked No. 1 for Gen X franchise interest in large states with more than 10 million adults, and ranked No. 4 in states with more than 2 million adults. Millennials aged 23- to 38-years old 19.8% of Texan prospects, and Baby Boomers were 25.1% of the total.
- Household income – 30.5% of Georgia prospects had household income of $100,000 or more, and 62.8% are married.
- Home ownership – 75.6% of prospects in Georgia own a home, and 66.0% have been in residence for 5 years or longer.
- Home value is estimated over $250,000 for 35%, and over $500,000 for 7.5% of prospects.
Liquid assets – 22.7% had income-producing assets over $75,000, and 4.3% had liquid assets over $500,000.
Top Franchise Categories in Texas, 2019
| Share of Texas franchise inquiries | Texas Franchise Interest Index (100 = national average) |
|
|---|---|---|
| Food & Restaurant | 19.8% | 102.1 |
| Home Services | 15.2% | 98.7% |
| Business Services | 10.8% | 98.8% |
| Senior and Health Care | 9.7% | 99.0% |
| Cleaning & Maintenance | 9.1% | 100.9% |
| Child-related | 5.4% | 100.9% |
| Automotive | 5.0% | 120.7% |
| Health & Fitness | 4.9% | 105.0% |
| Financial Services | 3.6% | 101.0% |
| Travel & Lodging | 3.3% | 93.0% |
| Retail | 3.1% | 94.5% |
| Personal Care | 2.8% | 97.3% |
| Education | 2.2% | 92.0% |
| Pet Services | 2.1% | 94.6% |
| Real Estate | 1.5% | 78.8% |
| Sports and Recreation | 1.0% | 108.5% |
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.
FranchiseVentures is the leading franchise lead-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, SmallBusinessStartup.com and BusinessBroker.net, and together they provide the largest aggregation of prospective franchise buyers in the U.S.
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Published on Wednesday, May 27th, 2020.