Texans might have a reputation for boasting about the attributes of their state, but they have a right to — the Texas business climate is in part due to a truly robust and inviting economy. Texas is a great draw for entrepreneurs of all stripes, where you can start a business, including the operation of a franchise location.
Texas Business Advantage Overview
The Lone Star State has long been recognized for its low taxation rate, business-friendly attitude, diverse workforce, and ever-growing customer base. The state also provides business-friendly regulations for Texas-incorporated businesses, including laws that protect company directors from liability for good-faith decisions and that allow Texas companies to choose trial venues, ensuring experienced judges.
The state’s central location comes with excellent transportation infrastructure, which includes a primary highway system, world-class airports, and rail hubs. The Sunbelt weather draws tourists, as well as domestic and international immigrants. No wonder it’s the nation’s second fastest-growing state in population in 2025, and has been a leader in that category for the last several years.
Three of the nation’s top 10 largest cities are in the Lone Star State, and a total of six of the top 25 cities are positioned here. But where in this vast state — one that’s larger than many European nations — should you start your own independent or franchise business operation? There are 43 cities here with a population of at least 100,000. Are they all equally valid destinations for your investment dollar, or are some better than others?
Major Metropolitan Business Centers
Opportunity is abundant just about everywhere here, but there are a handful of the best cities for business in Texas where the climate is extreme and inviting. Here’s a profile of each.
Dallas — Corporate Headquarters Capital
Including the more expansive Dallas-Fort Worth metropolitan area, there are 21 Fortune 500 companies and 48 Fortune 1000 companies headquartered here. That’s a testament to the business-friendly atmosphere and the talented workforce available. Dallas also has no corporate and personal income taxes, which have contributed to the city’s status as one of the top financial hubs in the country. Add that to the healthy transportation infrastructure maintained by the Dallas Department of Transportation and Public Works, making access to and within the city easily accessible, and you have the makings of a corporate headquarters capital.
With a population of over 1.3 million, Dallas alone has a strong and still-growing customer base and a diverse economy, making it one of the best cities for business in Texas. You’ll find opportunity in many pursuits here.
Houston — Energy and International Trade Hub
Huge and boisterous, Houston is yet another Texas city in the top 10 in the U.S. by population. You’ll find the city has a booming economy that was initially focused on the energy sector but is much more diverse today.
With its central port location, Houston is a significant power in international trade. Houstonians have a can-do attitude. Its population is still growing, and so are the opportunities for business owners in multiple sectors of the economy, including manufacturing, energy, aerospace, health care, and professional and technical services. The city also leads the nation in gas and oil production, refinement, and export.
Austin — Technology and Innovation Center
The self-proclaimed Live Music Capital of the World has a youthful, creative, and dynamic spirit. It’s also one of the largest cities in Texas, still rapidly growing, and the capital of the state.
Part of Austin has earned itself another nickname: Silicon Hills. That’s on account of the cluster of tech companies establishing themselves here. Austin is an excellent place to introduce new ideas and secure venture capital investment for leading-edge businesses of all kinds, thanks to its positive outlook, education focus, and forward-looking culture. Technology and innovation enterprises reign.
Emerging Business-Friendly Cities
Several cities are emerging as some of the most business-friendly in the state. Here is a quick review of additional best cities for business in Texas:
Plano — Corporate Suburb Success
This is the one Lone Star location that’s less familiar to non-Texans — but that won’t always be the case. Plano is a suburb just north of Dallas, but it’s much more than a bedroom community. With a population of over 285,000, it’s a significant city in its own right. Perhaps that’s why so many top corporations, including JPMorgan Chase, Bank of America, Toyota Motor North America, and Pizza Hut (U.S.), are based here.
It’s home to more than 1,000 tech companies serving residents and businesses in the entire Dallas-Fort Worth region and far beyond, providing ample employment opportunities. When paired with the city’s top-rate educational institutions, including the University of Texas, and its low crime rate, Plano is a highly desirable place to live. The city’s continued growth is all but guaranteed, meaning it’s one of the best startup cities in Texas.
San Antonio — Military and Healthcare Hub
Welcome to yet another top-10 U.S. city. With its city population of more than 1.5 million, San Antonio takes the seventh spot in the ranking of the nation’s largest communities. It has a major U.S. military presence, meaning that it attracts billions of U.S. government dollars. It also has a reputation for its healthcare leadership, with multiple hospital systems, research centers, and related areas of operation.
Combining its two leading industry sectors, San Antonio is the nation’s largest military healthcare hub. You’ll find that those two industries and others yield ample opportunity for motivated entrepreneurs in numerous fields of interest.
San Antonio is rich in cultural and tourism resources, including the Alamo, the San Fernando Cathedral, and the San Antonio African American Community Archive & Museum. These sites attract both visitors and residents alike, making it one of the best cities for business in Texas.
Key Business Success Factors
Business leaders may attribute success to key factors, including persistence, strong leadership, teamwork, and dedication to innovation. Other crucial factors that contribute to success include easy access to airports and highways, as well as a strong telecommunications infrastructure, both of which support connectivity.
Strategic Recommendations for Business Location
Texas is as huge as its entrepreneurial opportunities. You’ll find a diverse workforce and a ready market for your products or services in whichever city you choose to do business in this state, whether it’s the established, economically healthy Houston or one of the smaller, economically emerging cities in the state.
Among the opportunities you consider, the business franchise model might well stand out. Franchising involves buying into an existing business network with a proven success track record, a recognized name, and broad brand appeal.
As a franchise, you’ll carry that franchisor’s name, but the business is always your own. However, you’re never without assistance when you want it. You have the franchisor and its proven ways of doing business and achieving brand loyalty. This assures you of an audience already familiar with you and highly receptive to the opportunity to do business, even before you open your doors for the first time.
A quality franchisor will offer you comprehensive training and will be there every step of the way to answer your questions and provide full support as you conduct your business day to day. That’s a definite competitive advantage over businesses that start without that instant brand familiarity and appeal.
A Franchise Model in Texas
One such successful franchising operation is Freeway Insurance. At Freeway, we’re identifying franchise-ready markets from coast to coast, and we see Texas as a prime area for further development.
If you become a Freeway agent, you’ll first get a top-tier training program. We’ll even help you earn your state’s certifications. We’ll be there 24/7 to offer guidance and support once you launch your business and whenever you need it. Your customer base already knows the Freeway name and will benefit from the diverse menu of insurance products you can offer.
Best of all, you can become a Freeway franchisee very affordably. There are no buildings to build or lease, no physical inventory to buy and store, and no workforce needs beyond your own involvement. You can work solo out of your home, with little more than a phone and a laptop, until your business grows, whether it’s a corporate relocation to Texas or you’re a first-time business owner.
Want to learn more? Simply call your Freeway Insurance franchise representative at 877-822-3024 today for a no-pressure call, or give us your contact information online, and we’ll check in with you.
We hope to see your business launched soon in the business-friendly Texas city of your choice.
