What’s Ahead for Franchising in 2025? Here are the Key Trends to Watch.

In short

Written at the start of 2025, this piece looks back before it looks ahead. Rob Lancit calls 2024 largely positive for franchise development, with strong demand in essential services, technology and health and wellness, continued interest in recession-resistant concepts, and a lending environment that helped early in the year. Competition for quality candidates grew.

He names three things that worked. Development teams used social platforms, personalized email and AI-driven tools to target candidates and lower acquisition costs. Franchisors invested more in franchisee support, from financial planning resources to operational training. Many brands widened outreach to underserved communities, helped by updated SBA lending guidelines.

He also names three weak spots. Training needs to be localized as more international franchisees join. Financial transparency, particularly around Item 19 of the FDD, could be better. Sustainability matters to the generations now buying franchises and buying from them.

For 2025 he expects virtual reality to let candidates tour locations and training facilities from a distance, AI-driven support to give franchisees more specific recommendations, and micro-franchise and flexible models with lower overhead to attract younger and part-time owners, a segment he considers largely untapped.

Summary by the editors of this site. The original is Rob’s own writing; read the original at the source.