📊 Memphis, TN-MS-AR Market Demographics
Population
1,355,000
🟢 Census ACS 2023
Median Household Income
$54,600
🟢 ACS Table B19013
Median Age
37.0 yrs
🟢 ACS Table B01002
Unemployment Rate
5.8%
🟢 BLS LAUS
Homeownership Rate
54.2%
🟢 ACS Table B25003
📋 Market Analysis: Why Memphis for Franchising?
Income & purchasing power. Memphis's median household income of $54,600 is 27% below the national median of $75,149. Value-oriented franchise concepts (QSR, cleaning services, discount retail) tend to perform well in markets below the national income median, as franchisees can maintain lower operating costs while serving strong demand.
Labor market conditions. The unemployment rate in Memphis is 5.8%, 2.2pp above the national average of 3.6%. Higher unemployment can mean a larger available labor pool for franchise operators, but may also signal weaker consumer demand. Categories serving essential needs (automotive, healthcare, cleaning) tend to be more resilient.
Homeownership & service demand. At 54.2%, homeownership in Memphis is 11pp below the national rate of 65.2%. Lower homeownership rates shift franchise demand toward service-based and convenience concepts rather than home services. Look for opportunities in fitness, food, and personal care.
Top opportunity: Automotive Services. With a Penetration Index of 35 (65% below the national average), Automotive Services has the highest Opportunity Score of 85/100 in Memphis. The market has an estimated 38 existing units versus 108 expected based on population — a gap of roughly 70 units that represents white-space opportunity for new entrants.
How Memphis compares. Demographically similar metro areas include New Orleans, Oklahoma City, Louisville. Comparing franchise penetration across peer markets can reveal whether Memphis's opportunity gaps are local (untapped demand) or structural (category fit for the region). Explore each peer market for side-by-side franchise category analysis.
#1
🚗
Automotive Services
Oil change, auto repair, detailing, and specialty automotive service franchises
85
Opportunity
Score
🟢 Census Verified
Penetration Index
35
65% below avg
Est. Units (Memphis)
38
vs 108 expected
Avg Investment
$180,000–$450,000
typical range
64% below peer-market average — 38 estimated units vs 108 expected for a market of 1.4M (Source: FDD Item 20 estimates)
📊 Source: Unit counts from Census business patterns (NAICS 8111)
Full Analysis — All 10 Categories in Memphis →
#2
🏠
Home Services
Cleaning, landscaping, HVAC, plumbing, and home improvement service franchises
81
Opportunity
Score
🟢 Census Verified
Penetration Index
39
61% below avg
Est. Units (Memphis)
115
vs 298 expected
Avg Investment
$80,000–$300,000
typical range
62% below peer-market average — 115 estimated units vs 298 expected for a market of 1.4M (Source: FDD Item 20 estimates)
📊 Source: Unit counts from FDD disclosures + IFA annual report
Full Analysis — All 10 Categories in Memphis →
#3
🍔
Fast Food / QSR
Quick-service restaurants including burgers, pizza, sandwiches, and ethnic fast food
74
Opportunity
Score
🟢 Census Verified
Penetration Index
46
54% below avg
Est. Units (Memphis)
250
vs 542 expected
Avg Investment
$250,000–$800,000
typical range
54% below peer-market average — 250 estimated units vs 542 expected for a market of 1.4M (Source: FDD Item 20 estimates)
📊 Source: Unit counts from FDD Item 20 + Census business patterns
Full Analysis — All 10 Categories in Memphis →
#4
☕
Coffee & Beverages
Coffee shops, juice bars, tea houses, and specialty beverage franchises
74
Opportunity
Score
🟢 Census Verified
Penetration Index
46
54% below avg
Est. Units (Memphis)
113
vs 244 expected
Avg Investment
$150,000–$500,000
typical range
54% below peer-market average — 113 estimated units vs 244 expected for a market of 1.4M (Source: FDD Item 20 estimates)
📊 Source: Unit counts from FDD disclosures + SBA franchise data
Full Analysis — All 10 Categories in Memphis →
#5
💪
Fitness & Wellness
Gyms, boutique fitness studios, yoga, martial arts, and wellness centers
74
Opportunity
Score
🟢 Census Verified
Penetration Index
46
54% below avg
Est. Units (Memphis)
75
vs 163 expected
Avg Investment
$200,000–$600,000
typical range
54% below peer-market average — 75 estimated units vs 163 expected for a market of 1.4M (Source: FDD Item 20 estimates)
📊 Source: Unit counts from IFA membership data + FDD Item 20
Full Analysis — All 10 Categories in Memphis →
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📈 Peer Market Comparison — Similar Metro Areas
| Metro Area | Population | Median HHI |
|---|
| 📍 Memphis, TN-MS-AR (this market) | 1,355,000 | $54,600 |
| New Orleans-Metairie, LA |
1,282,000 |
$56,100 |
| Oklahoma City, OK |
1,432,000 |
$59,500 |
| Louisville-Jefferson County, KY-IN |
1,420,000 |
$60,400 |
❓ Frequently Asked Questions
What are the best franchise categories to open in Memphis?
Based on our data analysis, the top franchise categories in Memphis by Opportunity Score are: 1. Automotive Services (Score: 85/100), 2. Home Services (Score: 81/100), 3. Fast Food / QSR (Score: 74/100), 4. Coffee & Beverages (Score: 74/100), 5. Fitness & Wellness (Score: 74/100). These scores are based on population demographics from US Census ACS 2023 and franchise unit count estimates from FDD Item 20 disclosures.
How many people live in the Memphis, TN-MS-AR metro area?
According to the US Census American Community Survey 2023 5-year estimates, the Memphis, TN-MS-AR metropolitan statistical area has a population of 1,355,000.
What is the median household income in Memphis?
The median household income in the Memphis, TN-MS-AR metro area is $54,600, according to US Census ACS 2023 estimates (ACS Table B19013).
How many Automotive Services franchise units are in Memphis?
Based on FDD Item 20 disclosures and Census business pattern data, Memphis has an estimated 38 Automotive Services franchise units, compared to 108 expected based on the metro's population. This gives a Penetration Index of 35 — indicating a potentially underserved market.
How does the Memphis market compare to similar metro areas for franchising?
Memphis has a population of 1,355,000 and median household income of $54,600, which is -27% below the national median. Comparable metro areas include New Orleans, Oklahoma City, Louisville. We recommend comparing opportunity scores across peer metros before selecting a territory, as penetration gaps vary significantly between demographically similar markets.
What factors should I consider before opening a franchise in Memphis?
Key factors include: (1) local income levels — Memphis's $54,600 median HHI determines which franchise price points the market supports, (2) category saturation — check the Penetration Index for your target category, (3) labor availability — the 5.8% unemployment rate affects staffing costs, and (4) real estate — homeownership at 54.2% influences both commercial lease availability and home services demand. Use our Territory Opportunity Finder for a complete category-by-category analysis.
📚 Data Sources & Methodology
This analysis is based on:
- US Census American Community Survey 2023 (5-year estimates)
- Franchise Disclosure Documents (FDD Item 20) through 2024
- International Franchise Association (IFA) market data
How Opportunity Scores are calculated: Scores combine franchise category penetration (estimated from FDD Item 20 data),
local income levels, unemployment, and regional market factors. A score of 80+ indicates strong underpenetration;
50–79 indicates moderate opportunity; below 50 indicates a saturated or challenging market.
What "estimated" means: Unit counts marked 🟡 are derived from FDD disclosures for major franchisors
and Census business pattern data. They are directional estimates, not precise counts. Verify through individual FDD Item 20 research.
Disclaimer: This analysis is for informational purposes only.
It does not constitute investment advice. Past market data does not guarantee future franchise performance.
Full methodology →
Last updated: April 1, 2026 · Data: US Census ACS 2023 · FDD through 2024
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