Franchising Predictions for 2025

What’s in store for the franchise sector? Franchise thought leaders share their top predictions for 2025.

Each year we ask our franchising network for their predictions from the coming year. (Check out last year’s predictions.)  

As we look forward to 2025, several key themes emerge from the predictions shared by clients and franchise friends, reflecting the evolving landscape of the franchising industry. These themes underscore a transformative period for franchising, driven by technological innovation, economic shifts, and a deeper commitment to authenticity and human-centric business practices.

As far as what I predict…there will be a continued focus on the people in our organizations in 2025. Creating space for them to be authentic with colleagues and focusing on their personal and professional growth will help retain great people, as well as find new ones to join the team. With hiring and retention remaining the top challenge for most business owners, franchisors and suppliers will need to prioritize strategies to support franchise owners in building strong cultures within their organizations. 

11 Franchising Predictions for 2025

1. The tailwinds of the 2024 economic climate present an opportunity for record franchise growth in 2025. Lower interest rates and easing inflation have made capital more accessible, spurring new owners and enabling existing owners to pursue multi-unit expansion. Additionally, economic optimism will continue to fuel the surge of private equity interest in franchising.

Deregulation in the labor market offers hope for easing operational challenges and increasing workforce flexibility. However, uncertainty surrounding potential union influence and pro-labor initiatives highlights the need for businesses to stay agile and adapt to evolving labor policies. Preparing for these shifts will bolster resilience.

Finally, operational excellence remains critical. Franchisors should double down on training programs that empower franchisees to enhance profitability and deliver superior customer service. At the same time, investing in technology and AI can drive efficiency and support franchisees in scaling their businesses effectively.

The year ahead is a unique chance to grow, innovate, and thrive. By seizing these opportunities, we can set a strong foundation for success well beyond 2025.

– Jarod Evanich, President & Co-Founder, A Place At Home

2. First, a more pro-business administration will make the typically apolitical Federal Reserve…quite political. As the next administration prepares to enter the White House again, don’t be surprised if fiscal policy gets thrust into the spotlight here. Talks of another decrease in corporate tax rates, a new tariff policy and a bullish Wall Street may lead to some interesting consequences here. The Federal Reserve has been working hard to curb inflation in the past two quarters, so definitely keep your eye on the decisions they make here. It could have a lasting effect on the franchise space in general and which industries within our business model flourish in the next four years.

Second, the finance community is (finally) back to business again. After a couple of years on the sidelines, decreasing interest rates is seeing the “deal embargo” be lifted for many of the private capital investors across the franchise industry. While I don’t believe we’ll be returning to the Wild West of the post-pandemic 2021-2022 buying spree, I do believe many of the sponsor-backed businesses within franchising will move onto another owner in the first couple of years of this administration due to a rosier buying/selling environment. This will be most prevalent in franchisors that have transacted before, many of those deals have been on hold until we knew which way the wind would blow come Election Day. 

– Zack Fishman, Chief Growth Officer, Fishman PR

3. This industry is as strong as ever. We are seeing the growth in emerging brands and existing brands that are being acquired can expect larger multiples in their sales price. I believe that we will continue on this path. My only concern is how the new administration will handle the proposed tax on foreign countries and the effect that might have on supply chain and building supplies. I am budgeting for this in 2025 and beyond.

– Mitch Cohen, PerforMax Franchisee Advisors, Sola Salon Studios Franchisee, Jersey Mike’s Subs Franchisee, IFA Board of Directors

4. AI adoption, private equity investments, access to credit, and hiring talent. There likely will be forecasts on all kinds of topics for 2025. But the thing that stands out the most in my humble opinion is a very well-known yet all-new attractive target prospect. It’s not lost on me that Flynn Restaurant Group is now known as Flynn Group. And why? Because MUMBOs (multi-unit, multi-brand owner operators) don’t just know how to run great businesses in a certain sector. They know how to run great businesses…period. And they will look for franchise opportunities with great unit-level economics in a multitude of verticals. Expect more of that. Much, much more!

– Monica Feid, COO, BizCom Associates

5. Technology is poised to revolutionize the franchising industry, not only through the tools themselves but the way it is slowly changing expectations of our clients and their needs. In an age where individuals can access information, answers, and thought leadership content almost instantly, franchising will adapt to keep pace. In fact, we will most likely be the pioneers.

The future holds exciting opportunities to leverage technology for instant outreach and delivering personalized content precisely when clients need it most. For franchisors, advancements in tech promise greater efficiencies—streamlining administrative tasks, enhancing communication with franchisees, and providing superior education and training.

Rather than fearing or deprioritizing these advancements, we must embrace and focus on them. By doing so, we position ourselves to serve all stakeholders better and create a more agile, innovative, and connected franchising ecosystem. These are transformative times, and the possibilities ahead are truly inspiring.

– Marisa Frois, CEO, The Entrepreneur’s Source

6. The biggest opportunity in franchising over the next year is regarding leadership development.  This is one of the x factors that can lead to exponential growth for franchise brands in 2025. In the same way that higher level funds have started to find their way more and more to the franchise industry via strategic investors and private equity, now is a prime opportunity for the industry to attract and retain the highest level talent and put in focus on the development and growth of talent like never before.  The focused investment on people development will further drive much needed innovation in our industry during what should be a year when new opportunities start to resurface and flux and change is inevitable.

– Antonio McBroom, CEO, Primo Partners

7. By 2025, AI will reshape franchising by streamlining operations and driving smarter, data-driven decisions. At Cruise Planners, we’re leading the charge with AI tools like Ask Maxx, which enhances efficiency and personalization for our franchisees. From predictive insights to automated support, AI will empower franchisees to grow faster, serve clients better, and stay ahead of the competition.

– Theresa Scalzitti, COO, Cruise Planners

8. The way we work is undergoing a seismic shift, and as we step into 2025, one thing is clear: authenticity has become a non-negotiable ingredient for thriving workplace cultures—especially in franchising.

As the founder of Stay in Your Lane and Train in Your Lane, I’ve seen firsthand how people are flipping the script on work. The lines between our professional and personal identities are blurring, and, honestly, that’s a good thing. Employees today want to be seen and valued for their whole selves, not just the fancy job titles they carry around like badges. They want empathy, kindness, understanding, and a GOOD PLACE to thrive. 

Franchises that create space for genuine self-expression are poised to win big in this new era. People aren’t just clocking in for a paycheck anymore; they’re searching for workplaces that foster meaningful connections, where they can bring all of who they are—quirks, dreams, awkward dance moves, and all. (I am a good dancer tho.) This isn’t just some fleeting workplace culture trend; it’s a full-on reimagining of what work-life balance means in our post-pandemic world.

And franchising? We are uniquely positioned to lead this charge. Our industry is built on relationships and community, which makes it a natural incubator for real, human-centered cultures. 

As we navigate 2025, the franchises that prioritize creating environments where people can truly be themselves are going to come out ahead. They’ll have more engaged teams, lower turnover, and stronger bonds. And let’s be real—this authenticity-first approach doesn’t just feel good; it makes business sense. Resilient, adaptable organizations aren’t built by shoving people into cookie-cutter molds. They’re built by embracing the full, messy, wonderful spectrum of human potential. BE MESSY, FRIENDS.  

– Ingrid Schneider, CEO, Stay in Your Lane

9. Here is my prediction (and yes, hope!). Unit level economics, system change, and brand level performance will matter more in 2025 than franchise development, especially with emerging franchisors. Yes, franchise development is important, but in order for any franchise system to be successful and sustainable for all stakeholders, franchise leaders must have an obsession with unit level economics and franchisees delivering on the brand promise.

– Brian Schnell, Partner, Faegre Drinker

10. As we head into 2025, the franchising community will be deeply influenced by the ripple effects of the new administration’s policies—especially around regulation, tariffs, and the balance between domestic and international production. These shifts won’t just stay in the policy arena; they’ll impact franchise operators, their customers, and the broader economy in real and tangible ways.

The administration’s stance on regulation will be pivotal. Looser labor or environmental rules might provide some relief for franchises operating on slim margins, while tighter oversight could drive up operational costs. Agility will be critical for franchisees, who must navigate compliance while safeguarding profitability.

Tariffs will also be a game-changer, reshaping the cost structure for goods and materials. Higher import tariffs could make domestic production more competitive, encouraging local manufacturing. But it comes at a cost—both to franchisees managing tighter margins and to consumers already stretched by rising living expenses. For franchises dependent on international supply chains, whether it’s food ingredients or retail inventory, this could create serious financial pressure.

These economic dynamics will have a ripple effect on consumer behavior. Higher costs and uncertainty tend to shrink disposable income, forcing consumers to choose between “needs” and “wants.” Franchises in discretionary categories—like fitness studios, specialty dining, or luxury services—will need to refine their messaging and value proposition to stay relevant in a more cautious spending environment.

That said, there’s an opportunity in the shift toward domestic production and localized supply chains. Franchises with a strong “Made in the USA” story or a focus on community investment will be well-positioned to resonate with evolving consumer sentiment. And as businesses adapt to these new realities, we could see a wave of innovation within the franchise space, rethinking cost structures and meeting consumer demands in more intelligent, more creative ways.

– Doug Zarkin, Chief Brand Officer, Modern Performance + Recovery Brands

11. In an age where time is a precious commodity, the demand for convenience and speed will escalate to new heights, becoming a key determinant in consumer decision-making. This trend, driven by a fast-paced lifestyle and the digital revolution, is reshaping consumer expectations. Brands investing in new technologies and automation will meet the needs of the customer and provide a personal, world-class experience. Ultimately, this will set franchisees apart from the local competition and accelerate growth.

– Scott Zide, CEO, Empower Brands 

Ultimately, success in 2025 will hinge on operational excellence, strong unit-level economics, and fostering resilient, people-centered organizations. By embracing these themes, the franchising community can lay the groundwork for innovation, sustainable growth and adaptability well into the future.

Related Resource:

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• Workplace trends impacting hiring and retention
• The outlook for 2025 and beyond
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