The key takeaway from the International Franchise Association (IFA)’s 2025 Franchising Economic Outlook is that business is booming.

Expectations for franchise growth in 2024 were tempered by economic uncertainty and policies that weren’t supportive of much expansion. With a global economy reeling from inflation, high interest rates and continued supply chain disruptions, no one felt optimistic about significant growth. Plus, with minimum wage hikes, labor shortages, stricter labor laws and higher taxes, it was difficult to see how business owners could get ahead. 

However, according to the IFA report, franchising still experienced 2.2% growth in 2024, and projections have that growth continuing in 2025 by an additional 2.4%. The general outlook for the industry looks good, but opportunities for success in the home service franchise sector itself looks even better.

Home Service Franchise Growth Potential

Because Five Star Franchising brands fall into the commercial and residential service areas, the growth in 2024 and forecast for 2025 adds up to great opportunity. According to the IFA’s report, business expansion in the service space was healthy in 2024, and the 2025 growth is expected to continue. Franchise owners are expected to see expanded sales with the industry’s total output expected to top $65 billion this year.

The ongoing rosy forecast and continued strength of the housing market present home service franchises for commercial and residential sectors an enormous opportunity for growth. Partnering with an experienced franchisor, like Five Star Franchising, puts you ahead of the pack. Our brands, including Five Star Bath Solutions, Gotcha Covered, Bio-One, 1-800-Packouts, Mosquito Shield and Card My Yard, have a strong support structure behind them with the experience to help new franchise owners succeed in any crowded market.

With Growth Comes Income

The IFA forecasts that the output of franchises across the county will exceed $900 billion in 2025. With this growth in sales, franchise 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 franchise owners the opportunity to keep their sales up and costs down. This network's round-the-clock support empowers franchise owners to evaluate leads, follow up on opportunities and manage their budgets whenever they need to. This helps franchise owners stay focused on achieving their business goals.

Reaching for Success

The outlook for Five Star Franchising couldn’t be brighter, even in these uncertain times. 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. 

Our brands present franchise owners with powerful benefits, including a proven franchise system, ongoing support and training, established vendor relationships and success-focused leadership. With the brand and franchise owners working in sync towards mutual success, you can’t lose! Let’s connect today and get started!