Top 5 Best States To Invest In The USA 2024
Discover the best states to invest in the USA for profitable franchises. Explore the top 5 states with strong economies, & strategic locations.
Table of Content
The U.S. Franchise Overview
Key Franchising Forecasts for 2024
For foreign investors looking to enter the U.S. market and open their own bonafide U.S. franchise, look no further. This list compiles the 5 best states to invest in the USA to start your franchise using data from the International Franchise Association’s 2023 Franchising Economic Outlook.
Read on to discover why these states are projected to outperform the rest and which franchise businesses are in demand.
The International Franchise Association (IFA) publishes an annual Franchising Economic Outlook. Here are some of its key franchising forecasts for 2023:
The number of franchise establishments in the U.S. is projected to increase by 1.9 percent or 15,000 units.
Franchises’ GDP is projected to increase at a rate of 4.2 percent, making its share of the overall U.S. economy stable at three percent.
Service-based industries and quick-service restaurants are projected to grow the most compared to other industries at a rate of 2.5 percent.
Texas is projected to witness the most growth in 2023. Overall, growth in the Southern United States will outdo the rest of the U.S. franchise market.
Top 10 Best States To Invest In The USA to Start a Franchise
1. Texas
Texas is known for its strong and diverse economy, favorable business climate, low taxes, and fewer regulatory restrictions. These are factors that allow businesses to thrive and make Texas as one of the best states to invest in the USA. Its economy is supported by its agricultural wealth, industry and finance, major oil and natural gas production, and large urban centers fostering a cosmopolitan cultural life.
Texas has a large customer base and diverse culture.
According to the U.S. Census Bureau, Texas had a population of 30,029,572 in 2022, with a median household income of $67,321 (in 2021 USD). It is the second most populous state in the U.S., indicating a large customer base that provides significant market opportunities for a wide range of franchise concepts over various industries. Its cultural diversity presents opportunities for entrepreneurs to target specific cultural markets or offer unique products or services.
Texas has a business-friendly environment.
Its state government actively encourages business growth, providing resources and incentives to facilitate business expansion and establishment.
Texas is strategically located in the center of the U.S.
It is accessible to major markets in the U.S. It is also close to Mexico and Latin America, enabling trade opportunities for certain franchise industries.
Texas does not impose a state income tax on individuals.
This is an advantage for business owners and employees, providing financial benefits that attract a talented workforce.
Texas has affordable real estate.
The cost of living and real estate is affordable in Texas compared to other states, making it beneficial for entrepreneurs looking to lower their overhead costs.
2. Illinois
Illinois’s diverse economy is fueled by its strong financial, healthcare, and technological performance. Its economy also benefits from its strong exports, manufacturing, and agricultural income value.
Illinois has a well-developed business infrastructure.
The state offers resources and support for business development with its well-developed business infrastructure, office spaces, commercial real estate, and industrial parks. It provides access to capital, networking opportunities, and incubators.
Illinois has a skilled workforce.
The state has renowned universities, vocational institutions, and colleges, providing entrepreneurs access to a pool of talented candidates for franchises requiring specialized expertise.
Illinois is a trade and transportation hub.
With Chicago being a major trade and transportation hub, foreign investors can benefit from franchises involving the importation and exportation of goods. The state’s well-connected infrastructure facilitates efficient supply chain management, creating Illinois as one of the best states to invest in the USA.
3. Florida
Florida is one of the best states to invest in the USA. Florida benefits from its location and climate, dubbed the “Sunshine State” of the U.S., attracting enormous numbers of visitors annually. The state’s economy is fueled by its strong tourism, surpassing agriculture and manufacturing as its main component. It also draws immigrants due to its growing service industry.
Florida is a top tourist destination.
With millions of visitors annually, Florida has become a top tourist destination. Franchises focusing on the hospitality and tourism sectors can benefit from the surging demand in Florida for hotels, resorts, entertainment venues, and restaurants. It has a large consumer market. Florida welcomed over thirty-seven million visitors between January and March 2023.
Florida has favorable tax policies.
The state is known for its favorable tax policies, encouraging a pro-business environment with no personal income tax. It also has various resources, support programs, and incentives that enable business development.
Florida benefits from its large population.
According to the U.S. Census Bureau, Florida had a population of 22,244,823 in 2022, with a median household income of $61,777 (in 2021 USD). It has a steady flow of new residents from other states and countries, resulting in a varied and rich culture that translates to diverse consumer preferences and a broad consumer market, creating opportunities for various franchises.
Florida is known for its retirement community and relaxed lifestyle.
As a top tourist destination with a sizable influx of annual tourists and new residents, Florida is known for its desirable lifestyle, active adult population, and retirement community. Foreign entrepreneurs seeking to open a franchise will find the state suitable for businesses focused on leisure and entertainment, food and beverage, the hospitality sector, senior care services, and fitness.
Florida benefits from its warm climate.
The state’s sunny weather makes it an attractive destination for tourists and residents. Its climate benefits franchises involving fitness, outdoor recreation, and restaurants with outdoor dining.
4. Georgia
Georgia offers several factors making it a good state to start a franchise. Georgia’s prosperity is largely based on its robust service sector and capital, Atlanta’s excellent air and rail connections. Its economy is also propelled by its strong transportation, utilities, banking, food and beverage, and information technology sectors. It is the country’s top location for corporate headquarters.
Georgia has a business-friendly environment.
Known for its favorable business environment, Georgia has few regulatory hurdles and low taxes, making it an attractive location for foreign investors. It consistently ranks high in national business rankings.
Georgia has a well-developed transportation infrastructure.
A well-known transportation and logistics hub, Georgia has major highways and railroads and is home to the world’s busiest airport, the Harsfield-Jackson Atlanta International Airport. The state’s connectivity greatly benefits supply chains, import-export, and distribution franchises.
Georgia offers a high quality of life.
The state has a relatively low cost of living compared to other major states, potentially reducing operating costs for franchise owners. Hence, making Georgia as one of the best states to invest in the USA.
5. Tennessee
Tennessee is one of the best states to invest in the USA. It has various economic, cultural, and social patterns, with a sizable Native American heritage. The state’s economy is predominantly service-based, followed by information and high-technology service developments. It also has excellent historical sites and a thriving music and entertainment industry.
Tennessee is known for its music and entertainment industry.
Nashville, in particular, is known as the “Music City.” The state’s vibrant music and entertainment industry creates opportunities for foreign investors looking into franchises geared toward live venues, music schools, events planning, and artist management.
Tennessee has a strong tourism industry.
In 2022, Tennessee welcomed over fourteen million visitors, recording an estimated $8.8 billion in visitor spending. Its popularity is due to its historical sites, natural beauty, and popular music and entertainment industry. It opens doors to franchise opportunities related to hospitality, food and beverage, and entertainment.
Tennessee has a favorable business climate.
The state benefits from low taxes and minimal regulations, highlighting its supportive environment for foreign investors.
Tennessee is strategically located.
Located in the southeastern U.S., the state provides access to major markets in the South, Midwest, and East Coast. It pairs well with its excellent transportation infrastructure with major railways and highways, enabling efficient logistics operations and distribution for franchises involved in interstate trade or supply chain management.
Find The Best Franchise To Invest For Your E2 Visa Today.
Types Of Franchises To Consider
Best E2 Visa Franchises
Here are some recommended and in-demand types of franchises to start in the U.S.:
Food and beverage
Foreign investors can take advantage of the rich food culture in the U.S. and its diverse population that spans various cultures, ensuring varied tastes and preferences. Quick, customizable, and high-quality food options are favored by many.
According to the IFA, quick-service restaurants are estimated to account for 45.3 percent of all franchise employment in the U.S. in 2023. This is due to the anticipated economic uncertainty making customers likely to cut their spending in expensive restaurants and opt for economical options like quick-service restaurants that often offer value meals.
Fitness and wellness
Between 2000 and 2019, the number of members of health clubs and gyms in the U.S. has increased, signifying demand. In 2019, there were over 64 million members of fitness centers and health clubs in the U.S.
Health and fitness are priorities for many people regardless of location. Foreign investors can invest in a specialized workout concept like kickboxing or CrossFit to differentiate themselves from regular gyms and wellness centers.
Senior care services
People are living longer thanks to improvements in healthcare and medicine, leading to a global demographic trend and increasing need for professional assistance and support for seniors.
Americans aged 65 and above grew from 2010 to 2020 at a fast rate of 38.6 percent, reaching 55.8 million, denoting a growing senior population. Foreign investors can tap into this opportunity by looking into franchises that cater to senior citizens, providing senior care services, such as in-home care, assisted living, and memory care.
Senior care franchises often involve a variety of services for different needs. They also provide stable and recurring revenue since they involve long-term care and ongoing support, providing predictable financial stability to the business.
Childcare and education
There are over 73 million people under 18 in the U.S. in 2023. Quality childcare and education services are increasing in demand as parents seek high-quality and reliable environments for their children’s learning and development.
Like senior care franchises, childcare, and education franchises also provide stable and recurring revenue due to their involving long-term enrollment and recurring contracts. Opening a recognized franchise also provides access to brand recognition and support due to its well-developed system and proven track record. Some franchise opportunities to consider include daycare services, early childhood education, STEM-based learning programs, and tutoring.
For more information on starting a franchise in the U.S. and securing the best states to invest in the USA, click here.
