Top 10 States for Franchising in 2025

Have you heard the news? The International Franchise Association (IFA) has released its 2025 Franchising Economic Outlook, and the data is compelling.

Among the key findings is a list of the top ten states projected for significant franchise growth in the coming year. For aspiring and existing franchisees, this information is gold.

In this blog & video, we'll dive into the IFA's findings, highlighting the top ten states for franchise growth in 2025, and explore how partnering with Del Taco can position you for success within these thriving regions.

The Power of Franchising and Regional Growth

The franchising model offers a significant advantage for entrepreneurs. It provides a proven framework, support systems, and the brand recognition necessary to build a successful business without having to "reinvent the wheel." FranData, a leading industry publication, forecasts continued growth for franchising, particularly in the Southeast and Southwest regions of the United States.

This regional growth is driven by several factors, including population shifts, with many people moving to states like Florida for a lower cost of living and more business-friendly environments. Del Taco is strategically positioned to capitalize on this trend, with recent development concentrated in these high-growth areas and significant white space still available.

The Top 10 States for Franchise Growth in 2025

According to FranData's research, the following ten states are projected to lead the nation in franchise growth:

1. Georgia
2. North Carolina
3. South Carolina
4. Virginia
5. Pennsylvania
6. Tennessee
7. Arizona
8. Florida
9. Colorado
10. Maryland

Collectively, these states are expected to add a staggering 280,000 franchise establishments, creating over three million jobs and contributing an impressive $311 billion increase in output in 2025 alone.

Let's take a closer look at some of these promising markets and the opportunities Del Taco offers.

Georgia

• Becoming a Del Taco "hub and spoke" market with over 20 existing stores.
• Projected franchise establishment growth of 3.3%.
• Over 15 current commitments, but significant white space remains in South Georgia, Atlanta, Macon, Augusta, and Savannah.

North Carolina

• Del Taco is making its entry into the state with initial openings in Durham and Sanford.
• Approximately 20 commitments for Del Taco restaurants, primarily in the eastern half.
• Significant opportunities available in major hubs like Raleigh, Fayetteville, and Charlotte.

Virginia

• First Del Taco location recently opened in Chesapeake with record-breaking sales.
• Strong growth potential in areas like Richmond, Northern Virginia, and Southwestern Virginia (including Roanoke and Blacksburg).

Arizona

• Established market for Del Taco with over 40 operating restaurants.
• Continued strong franchise growth projected at 2.6%.
• Opportunities exist around the edges of established markets, particularly in Tucson.

South Carolina

• Recently announced a multi-unit franchise agreement in the Myrtle Beach area.
• Majority of the state is still open for development, with nearly 30 identified market points.
• Projected franchise growth rate of 2.7%.

Pennsylvania

• A new frontier for Del Taco with no current locations.
• Significant targeted market areas identified for growth.
• Projected franchise growth makes it an attractive new market.

Tennessee

• Another emerging market for Del Taco with no current locations.
• Opportunities available in Knoxville, Nashville, Chattanooga, and the Tri-City area.
• High demand from fans for Del Taco in this rapidly growing state (projected growth of 3.2%).

Florida

• Recognized as a top opportunity with significant population growth.
• Over 10 new locations opened in the last few years with record-setting sales.
• 50 commitments in place for additional locations, with more white space available.

Colorado

• Established presence with approximately 18 operating restaurants and 10 additional commitments.
• Opportunities for further expansion from north to south, including Fort Collins, Boulder, Denver metro area, and Colorado Springs.

Maryland

• Projected 2.4% growth rate for franchise establishments.
• Franchise output is projected to reach $18.1 billion in 2025.
• Del Taco is not pursuing Maryland at this time.

Key Takeaway

The data clearly indicates that these ten states are poised for significant economic expansion within the franchising sector. Del Taco offers a proven business model, strong brand recognition, and comprehensive support systems to help franchisees thrive in these dynamic markets. Whether you're an experienced multi-unit operator or a newcomer to franchising, Del Taco's prime white space availability in these high-growth states presents a compelling opportunity.

Check Out These Additional Resources

We hope this article gave you a better understanding of the best states for franchising from this year.

At Del Taco, we work with our franchisees every step of the way to get their restaurants up and running.

Here are some additional online resources you may like to check out:

• How Much Does a Del Taco Franchise Cost?
• 15 Best Taco Franchises to Own
• Which Taco Franchise Makes the Most Money?

If you have any other questions, please don't hesitate to reach out to the Del Taco franchise team.