Colorado ranks among the top 10 states in a report forecasting the growth of franchised businesses and jobs in 2023.

Colorado is expected to add 444 franchised businesses and create a total of 6,835 jobs, according to the International Franchise Association (IFA).

“Even with today’s economic headwinds, franchises in Colorado continue to grow, provide career-building jobs for their employees and give back to their communities,” said Matt Haller, president and chief executive officer of the IFA, a trade organization representing franchising worldwide.

“After an historic year of growth during the post-pandemic recovery, franchising is predicted to exceed pre-pandemic growth levels, showing the power of the business model and its distinct advantages for prospective business owners,” Haller said.

According to the report for Colorado for 2023, franchise establishments are expected to increase 444 units to a total of 17,901 units.

Franchise businesses will create 6,835  jobs, bringing total payrolls to 193,190.

Economic output by franchise businesses will increase 4.9 percent to $19.1 billion.

States in the Southwest and Southeast are expected to experience the fastest franchise business growth in 2023.

In addition to Colorado, the top 10 states for franchise growth in 2023 are projected to include Arizona, Florida, Georgia, Illinois, Indiana, North Carolina, South Carolina, Tennessee and Texas.

The Southeast region, which has the largest concentration of franchises in the United States, will have an estimated 234,079 total establishments by 2023 employing 2.5 million workers and contributing $250 billion in output.

Nationwide,  franchise establishments are forecast to increase by almost 15,000 units in 2023 to 805,000 units.

Service-based industries and quick service restaurants are expected to grow the fastest.

Franchising will add about 254,000 jobs as employment reaches 8.7 million.

The total output of franchised businesses will increase 4.2 percent to $860.1 billion.

Franchises’ share of the overall economy will remain stable at 3 percent. Compared with 2022,  the monetary value of all the finished goods and services produced by franchises will grow at a slightly slower pace of 4.2 percent.