IFA 2025 Economic Outlook Report Highlights

3/12/25

Happy “What’s The Deal Wednesday” Franchise Friends!

Welcome to the first edition of the “What’s the Deal With Franchising?” Newsletter.

If you like this newsletter, please consider sharing it and forwarding it with others who might benefit.

In Today’s Newsletter:

  • 📊 Highlights from the IFA’s 2025 Economic Outlook Report

  • 🚛 Voda Cleaning & Restoration Franchise Breakdown

  • 🦸🏼‍♂️ Franchise Sidekick’s Top 10 Franchises for February

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What’s the Deal…

With the International Franchise Association’s (IFA) 2025 Economic Outlook Report?

Every year the governing body for the franchise industry, the International Franchise Association (IFA), releases an economic outlook report that details the state of the franchise industry as well as projections for the upcoming year.

International Franchise Association. (2025). Franchising Economic Outlook 2025. Retrieved from https://www.franchise.org/franchising-economic-outlook/

Below is a break-down of some of the key highlights for franchise buyers from that report:

  • Location Growth: The number of franchise establishments will increase by more than 20,000 units, or 2.5%, to 851,000 units

  • Total Franchise Output: projected to exceed $936.4 billion in 2025, reflecting a 4.4% increase from $896.9 billion in 2024

  • Franchise Growth vs. US Economy: Franchise GDP is expected to increase at a pace of 5% to $578 billion, meaning franchising is expected to grow faster than the U.S. economy, which is projected to increase by 1.9% in 2025 according to the Congressional Budget Office

  • Highest growth industries: The personal services and retail food/products/ services sectors are projected to lead growth in franchising establishments, growing by 4.3% and 3.5%, respectively.

  • Highest growing regions: the Southeast and Southwest is forecast to outpace the rest of the U.S. franchise market in 2025, with output growing by 6.2% and 8.5%, respectively

International Franchise Association. (2025). Franchising Economic Outlook 2025. Retrieved from https://www.franchise.org/franchising-economic-outlook/

If you live in any of these states, it might make sense to start exploring franchise opportunities…but if not, I wouldn’t let that discourage you. Franchising is growing rapidly all across the country.

I also wouldn’t get caught up in the sectors that are expected to experience the fastest franchise growth either.

It’s not about what’s hot…it’s about what’s hot for you. It’s also important not to skate to where the puck is now but to skate to where the puck is going.

Just because a sector is hot today doesn’t mean it will be the hot thing tomorrow.

Key takeaways, for me, is that franchising is on fire. The industry is booming. This is because more and more people are realizing that franchise ownership is the superior way to start a business.

Franchising has, for many years, been one of the best kept secrets in terms of wealth creation. More and more, that is starting to change.

With economic uncertainties and volatility in other investments, now is a great time to take control of your destiny through franchise ownership. 

If you have any questions or want to speak with me about anything in the report, please reach out.

And if you’d like my help exploring franchise opportunities, you can always set up time to meet with me here: Schedule a Free Consultation

Your Franchise Advisor,

Christian Dadulak

Franchise “Deal” of the Week - Voda Cleaning & Restoration

Voda Cleaning & Restoration is the first and only franchise in the U.S. to seamlessly integrate cleaning and restoration services, setting a new industry standard for both residential and commercial clients.

Voda franchisees benefit from a dual-revenue model: reliable, recurring income from carpet and floor cleaning services to build brand recognition while also helping to generate high-ticket, insurance-backed restoration jobs.

Competitive Advantages:

  • One of the fastest growing restoration franchises in the industry

  • Multiple Revenue Streams - Carpet/Floor Cleaning, Tile & Grout Cleaning, Upholstery Cleaning / Odor Removal, Water Damage Restoration, Storm Damage Restoration, Mold Mitigation

  • Need, Not a Want = Recession-resistant - if somebody’s house floods from a storm, pipe burst, or bath tub overflow, that’s an emergency

  • Insurance-based pay = Recession-resistant - the franchisee not relying on the discretionary income of the homeowner or business…they bill their deductible and the franchisee bills the insurance-company

  • Best of both worlds - recurring revenue (cleaning) AND high-ticket one-time jobs (restoration)

  • Both residential and commercial client opportunities - commercial clients can be VERY lucrative

  • Minimal staff required and no inventory needed

  • Home-based to start - just 1 wrapped-truck and a handful of employees

  • Call Center & Appointment Setting

  • Lead Generation Support & Done-For-You Marketing

Full Breakdown:

By the Numbers:

Minimum Financial Requirements…

(You need to meet these requirements at a minimum to be considered for this franchise)

Net Worth - $250,000+

Liquidity - $75,000+

Item 7 - Estimated Initial Investment Range

This range typically contains everything to get the business up and running, including the franchise fee and 3 months of working capital

Investment: $176,169 - $257,852 (single territory)

Approximate Down Payment w/ SBA Loan: $35,233.80 - $51,570.40

(assuming 20% down - the SBA only requires 20% down but the full franchise fee of $59,500 would be due at the time of signing your franchise agreement)

Item 19 - Financial Performance Representations:

*Refer to Item 19 in the most recent Franchise Disclosure Document*

*Refer to Item 19 in the most recent Franchise Disclosure Document*

*Refer to Item 19 in the most recent Franchise Disclosure Document*

Fees:

  • Royalty: 7% Gross Sales

  • Brand Fund: 1% First Year / 2% Thereafter

  • Franchise Fee: $59,500

Total Territories Awarded: 201+

Territories Awarded In Last 12 Months: 119

Number of Franchisees: 80+

Real Estate Requirements: None

Employees Needed to Start:

  • 1 Manager

  • 1 Lead Technician

  • 1 Office Admin

  • (Owner/operator can fill any of these roles)

Territory: 85,000 Owner-Occupied Households

*Refer to the most recent Franchise Disclosure Document. This information may have changed since first published and is provided for informational purposely only. I recommend that you always verify feedback, investment amounts, and offers for the franchise opportunity directly with the franchisor prior to deciding to invest. No offer is being made and can only be made by the franchise’s disclosure of the Franchise Disclosure Document (FDD)*

Franchise Sidekick’s Top 10 Franchises for February

For those that don’t know, I’m a franchise advisor at Franchise Sidekick, the leading franchise advisory firm in the industry.

Every month, we track the franchises that most of our clients, future franchise owners, find exciting.

This month’s Top 10 Franchise Brands show exactly where franchise buyers are looking right now.

Here are some highlights of our Top Three for February:

⛳️ The Back Nine (for the THIRD month in a row)

  • Virtual golf simulator franchise with 140+ locations in the process of opening

  • Top-of-the-line golf simulator technology (called Full Swing) allows for a relatively hands-off model for people looking to bring a fun brand to their community

  • 24/7 facility code access to the facility

  • No food or drinks means no complexity around staffing a kitchen, liquor licenses, etc.

  • Customers can book one-off tee times or can purchase ongoing memberships to improve their golf-game, play on the best courses in the world…all without any worries about weather

🧊 Degree Wellness 

  • One-stop shop recovery and wellness clinic with infrared saunas, cold plunges, red light therapy, cryotherapy, and more

  • Tremendous franchise backing through FranWorth (NFL Hall of Famer Drew Brees is the Chairman of FranWorth)

  • Comprehensive, but not complex - offers the most popular modalities that allow for the simplest labor requirements (and lower labor requirements means more savings and more affordable memberships for the consumer)

  • Very simple labor model - 2.5 labor units per shift…1-2 sales reps and 1 nurse of EMT for IV therapy (plus a General Manager for those wanting to run their business on the executive model)

  • 80% of the revenue is recurring through a subscription-based memberships

✈️ Real Clean Aircraft Detailing -

  • I broke this franchise down in my last weekly newsletter

  • The uniqueness of this concept has been highly appealing to all types of franchise buyers and investors all across the country - we don’t expect territories to be around for long

  • This is a 100% mobile-based interior and exterior detailing franchise for private aviation (think aircraft owners, corporate flight departments, etc.)

  • Multiple Services - interior and exterior aircraft detailing, paint revitalization, window restoration, polishing, etc.

  • Can service individual planes or entire corporate fleets

  • High-ticket recurring revenue - most planes need to get detailed every 90 days for some services and about annually for others (go Google the average cost for a plane detailing)

  • Proprietary nationally recognized cleaning products (Ex: Real Clean ceramic coating is the only factory-approved Cessna brand coating)

  • Pre-negotiated pricing with supplier partnerships

These are the franchise brands that Sidekick clients are looking at.

That’s it for this edition!

Let me know what you have questions about, what you’re curious to learn, what franchises you would like for me to break down, and more.

I want this newsletter to give you what you find most valuable so let me know how I can improve it. If it needs more information, less information, to be longer, shorter, share more industry news, etc, I can make that happen.

See you next week!

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Disclaimer
The views, opinions, and information expressed in this newsletter are those of the author(s) and do not necessarily reflect the official policy or position of Franchise Sidekick. This newsletter is in no way affiliated with Franchise Sidekick. This content is provided for informational purposes only and is not intended to represent the views or endorsements of Franchise Sidekick.