The key takeaway from the International Franchise Association (IFA)’s 2025 Franchising Economic Outlook is that business is booming, and franchises continue to light the fuse.

Expectations for franchise growth in 2024 were tempered by economic uncertainty and policies that weren’t supportive of much expansion. However, franchising still experienced 2.2% growth in 2024 and projections have its growth continuing in 2025 by an additional 2.4%.

The Five Star Franchising brands fall into the commercial and residential service sector, the growth in 2024 and forecast for 2025 adds up to great opportunity. According to the IFA’s report, business expansion was healthy in 2024, and the 2025 growth is expected to continue at a clip of 2.4% YOY. This means that more local jobs will be created, and sales will expand. In fact, the total output for the sector is expected to top $65 billion this year.

With an ongoing rosy forecast and continued strengthening of the housing market, there has been an influx of franchise brands who serve the commercial and residential sectors of the economy. That is why it’s important to partner with an experienced franchisor, like Five Star Franchising, if considering an entry into the sector. Our brands, including Five Star Bath Solutions, Gotcha Covered, Bio-One, 1-800-Packouts and Mosquito Shield, have a strong support structure behind them with the experience to help new franchisees succeed in any crowded market.

The IFA forecasts that the output of franchises across the county will exceed $900 billion in 2025. With this growth in sales, franchisee profits could also increase substantially. To help with this, the adoption of artificial intelligence and other tech innovations could drive down costs by optimizing operations.

Five Star Franchising’s tailored ProNexis platform for home service franchises simplifies and automates much of the sales process, giving franchisees the opportunity to keep their sales up and costs down. The round-the-clock support from this network allows franchisees to evaluate leads, follow up on opportunities and manage their budgets when they need to do it. This support allows franchise owners to focus on their goals.

The outlook for Five Star Franchising couldn’t be brighter, even in uncertain times. Being in one of the key sectors predicted by IFA to expand in 2025, our home service brands present great opportunities to any entrepreneur exploring the idea of franchising for the first time, or as an expansion opportunity for established franchise owners. When combining a supportive platform behind every decision, the franchisor and franchisees work in sync towards mutual success. Interested in learning more? Contact us today!