To maintain a competitive edge as a franchise in the years ahead, you must heed certain arising and continuing trends and practices. Knowing which industries are most likely to franchise and other franchise trends can help you plan your approach to franchise development in 2025 and beyond.
In this blog post, Senior Content Writer, Elizabeth Seigle, will explore the various trends to watch for and how they can help fuel your franchise growth.
What You’ll Learn:
- What Industries Are Most Likely to Franchise in 2025?
- Franchise Development Trends in 2025
- Franchise Sales Trends in 2025
- Franchise Marketing Trends in 2025
My Expert Insight into Franchise Trends
2024 saw plenty of interesting developments in franchise trends. Specifically, I observed everything from slower decision-making due to economic cooling, a continued emphasis on customer-centric experiences to combat rising costs, and an increased reliance on AI tools.
Many of these trends will continue into the next year and the foreseeable future, but there are some additional franchise industry trends on the horizon. For instance, you’ll want to know what industries are most likely to franchise in the next year and how these companies will plan their franchising strategies.
It’s also important to look at economic trends as you head into 2025, with 1851 Franchise finding some experts to be hopeful about the future of franchises. With potentially more deregulation and reduced taxes, many franchises have reason to expect a bright future ahead, especially as innovation continues to drive development.
Knowing what to expect in the coming years with franchise development, marketing, and sales will ultimately keep you on top of your industry, allowing for real long-term franchise growth.
What Industries Are Most Likely to Franchise in 2025?
According to Entrepreneur, many of the year’s trending industries will include food and beverage, along with others that appeal to people looking for affordable offerings and franchise opportunities.
The next big franchise concept will need to meet certain criteria to succeed and remain scalable. For example, trending franchises work with a proven business model that maintains profitability, branding that sets them apart, sufficient training and support, reliable technology and systems, and effective lead generation and sales enablement.
So, what industries are most likely to franchise in the coming year? Let’s take a look at Entrepreneur’s list of top industries and brands.
Note: These categories are not listed in any particular order.
1. Beverages
Many popular and growing franchise brands fall under the beverage industry. Companies like Dunkin’, Tropical Smoothie Cafe, and Smoothie King are dominating this market as they see continued franchise growth.
2. Chicken
Many chicken franchise opportunities are seeing success today. Top brands in this industry include Popeyes Louisiana Chicken, KFC, and Wingstop, which continue to expand across the U.S.
3. Childcare
As parents seek more education opportunities for their children in early childhood and supplemental education, the childcare industry will also flourish into 2025. The Learning Experience Academy of Early Education, The Goddard School, and Kiddie Academy are among the most popular childcare franchises.
4. Children’s Fitness
Another area related to childcare that’s likely to continue growing is children’s fitness. Many of these include swim schools, fitness programs, and facilities. For instance, Goldfish Swim School and Aqua-Tots Swim Schools top this industry, with Skyhawks and SuperTots Sports Academy close behind.
5. Desserts
Getting into the food industry, dessert brands are also excelling into 2025. Some leading brands here include Culver’s (for their frozen custard), Kona Ice, and Baskin-Robbins.
6. Home Improvement
As more people seek remodeling and complete DIY home improvement projects, franchises in this industry will also continue to develop. Top-performing home improvement brands include Ace Hardware, Budget Blinds, and Kitchen Tune-Up.
7. Mental Health Services
An increasing emphasis on mental health is fueling this industry’s growth. These brands offer everything from outpatient services to training programs and communities for new mothers. Some of these leading franchises include Ellie Mental Health, Cereset, and New Mom School.
8. Autism Services
More awareness about autism spectrum disorder (ASD) is leading to innovations in therapy and treatment services. As such, you can expect to see growth among brands like Changing the Spectrum, RCG Behavioral Health, and Success on the Spectrum.
9. Pets
People are always looking for pet supplies, training services, daycare, and more for their animal companions, making the pet industry a flourishing market. The winning brands here include Pet Supplies Plus, Dogtopia, and Dog Training Elite.
10. Restoration Services
Following natural disasters or other forms of wear and tear, many home and business owners seek restoration services from brands like Servpro, PuroClean, and Paul Davis Restoration.
11. Senior Care
Seniors and their families want the best care, making reliable senior care services among the leading franchise industry trends today. Interim Healthcare, Home Instead, and Senior Helpers are among the best performers in this industry.
12. Plant-Based and Lab-Grown Foods
As more and more people adopt plant-based diets and the food industry looks to appeal to these customers’ palates, one of the hottest franchise trends will involve lab-grown meats or more vegan options.
For instance, many restaurants offer plant-based meat substitutions, including impossible burgers. The desire to become more overall conscious consumers, including the desire for more sustainability, is also making this one of the biggest franchise industry trends.
13. Health and Wellness
Another of the latest franchise trends is the rise of gyms and other fitness franchises. The reason for this is people’s increasing focus on health and wellness, leading to a surge in workout and wellness centers that promote physical fitness.
Franchise Development Trends in 2025
Which trends are most likely to franchise? Multiple factors influenced franchise development trends in 2024, primarily related to cost and budgeting. Franchise Business Review also sees other themes impacting franchise growth into 2025, including economic changes, technological advancements, and an increased emphasis on human-centric approaches and authenticity.
Based on these, here are some top franchise trends to watch for in 2025:
Increased Overall Franchise Growth
2024’s overall financial stability and cost-effectiveness gave many franchises the foothold they needed to succeed into next year. Franchises will need to maximize operational excellence, sufficiently train their franchisees, and implement innovative technologies to maintain a competitive advantage.
More Potential Costs
While experts predict that both new and existing franchise brands have a chance to succeed in today’s environment, some added costs could present a challenge. For instance, some experts are uncertain how the new presidential administration’s implementation of international tariffs could increase supply chain and supply costs.
Technological Innovations
Various technologies will continually optimize franchise development efforts. For example, advanced franchise sales CRM tools can facilitate better communication with franchisees and customers, while automation integrations will simplify various processes and streamline workflows.
Another aspect of these franchising trends involves the adoption of augmented reality (AR) and virtual reality (VR) solutions. For example, a franchise could use VR simulators to facilitate employee training and onboarding with an interactive virtual environment. Meanwhile, a restaurant franchise might use AR to create interactive menus while a retailer uses it to visualize products in real spaces.
Additionally, AI is one of the biggest franchise trends that extends well beyond franchises. Using AI franchise solutions for analytics, predictive analysis, and automation, trending franchises are able to streamline nearly every aspect of their operations for improved efficiency and profitability.
AI Data Analysis
Franchises will continue to have the ability to gain powerful insights into their data with the help of AI. This technology will integrate into automated support, predictive analysis to optimize performance, and other areas to really drive industry growth.
A Focus on Speed and Convenience
Time is money, which is a philosophy that more and more franchises and consumers are taking seriously. As a result, franchises will continue to cater to fast-paced lifestyles and a culture of instant gratification, with timely delivery to end customers while working to maintain quality.
Emphasized Talent Growth and Development
If you want your franchise to really take off in 2025, another essential element is leadership development. Franchisors and franchisees should have sufficient training and expertise to make the most of franchising opportunities and drive expansion. By investing enough in the people behind them, franchises can effectively flourish.
The Rise of Multi-Unit Franchising and Regional Expansion Strategies
Another of the latest franchise trends impacting the next big franchises is the increased use of multi-unit franchising. The reason behind this trend is that many entrepreneurs are finding this model to offer more stability, potential profitability, and economies of scale. This model also enables more operational efficiency through streamlined operations and centralized management of multiple locations.
Meanwhile, regional expansion strategies are also among the current franchising trends, as business owners can capitalize more on local demand while ultimately avoiding market saturation.
The Role of Data-Driven Decision-Making in Selecting Locations
Today, effectively implementing data in every aspect of franchising is among the top franchise industry trends, and that goes for selecting locations, among other aspects of franchise development.
Choosing the right location is essential, and today’s technologies make it easier than ever by analyzing data for specific areas and demographics to identify the areas with the most potential. For instance, foot traffic, population density, and local consumer spending habits and preferences can all factor into location selection.
Crowdfunding, Partnerships, and Other Financing and Investment Franchise Trends
To help with financing and boosting profitability, many franchise industry trends involve crowdfunding, partnerships, AI-driven financial optimization, and eco-friendly investments that maintain sustainability. Crowdfunding gives franchisees access to capital for more convenient funding, while partnerships enable them to tap into the knowledge and resources available to drive success.
Franchise Sales Trends in 2025
Franchise sales will likely soar in 2025, with a couple of key developments influencing sales figures. These franchise trends include all of the following except for the use of old-school technology and rigidity:
Reduced Interest Rates
Experts hope that with reduced interest rates and an overall pro-business administration, 2025 will see a notable increase in franchise sales. Specifically, reduced interest rates would have the benefit of driving more private capital for franchises and increasing the number of sponsorships.
Expanding Verticals
More franchises out there are going beyond their initial verticals to branch out into as many franchising opportunities as they can. For example, Flynn Group, formerly Flynn Restaurant Group, went from focusing solely on the food and beverage industry to branching into the fitness sector.
Strategic Expansion
While expansion is good, it’s always best for franchises to pace themselves. Trending franchises adopt strategic expansion plans to avoid the potential for market saturation. Otherwise, growing too quickly can make it harder to sustain profitability as too many similar businesses sit in the same area, leading to stiffer competition, customer fatigue, and difficulties expanding to other areas with high demand.
Regulations
Just remember that certain government regulations and tax incentives are also shaping the future of franchising. Examples of regulations include the FTC Franchise Rule requiring franchise agreements to be transparent, certain employment and labor laws, real estate laws, and consumer protection. At the same time, franchises could benefit from Small Business Administration (SBA) loans to ease the startup process, Work Opportunity Tax Credit (WOTC) through the hiring of veterans or employees from certain target groups, and health insurance tax credits.
Franchise Marketing Trends in 2025
Another area of focus for any franchise in 2025 will be franchise marketing. Digital marketing strategies will continue to influence these brands’ success as they make use of the latest technologies and best practices.
The following are some critical franchise marketing trends to keep in mind in 2025:
The Use of Multichannel Campaigns
To expand their reach as much as possible, franchisors should implement multichannel marketing campaigns that use all available channels. From franchise websites and social media campaigns to franchise email and app marketing, it’s essential to connect with franchisees and customers at every potential touchpoint.
Better AI Capabilities
AI will only improve its ability to analyze, report, and predict data. By incorporating AI insights into your marketing efforts, you can continue to optimize your campaigns and fully utilize personalization to connect with target audiences.
Influencer Marketing and Social Media
Influencer marketing is also one of the current trends in franchising. Many social media audiences follow certain influencers on everything from Instagram to YouTube, making these personalities potentially great assets in promoting a franchise brand.
Social media marketing, in general, is critical for franchises, as they can use Facebook, TikTok, and other channels to promote both their brands and specific locations. These strategies are ultimately a great way to integrate a franchise into each target community.
Franchise social media posts can drive continued brand engagement and promote new locations, offerings, or developments.
Experiential Marketing
Trying out different forms of marketing could also help you find new and exciting ways to engage audiences. This type of approach can take many forms, too, like:
- Pop-ups
- Events
- Activations
- AR and VR experiences
Providing audiences with interactive experiences will help further differentiate you from the competition.
Emphasizing Personalization and Customization
One of the most essential franchise trends is personalization and customization with every experience.
Use analytics to collect data about your customers, including their personal preferences and buying habits, and tailor your marketing and services based on that data. Customization can be the key to giving your services a personal touch that keeps customers loyal.
Smart Expansion: Where the Franchise Market Is Headed Next
As mentioned, franchises must avoid market saturation when possible through strategic expansion planning.
The following are a few expansion strategies that are shaping the future of franchising:
Tapping into Emerging Markets
The franchise industry is certainly growing, as recent data shows that the franchising economy will see a 2.4% expansion in 2025, which is higher than projections for the broader economy.
One of the keys here will be to tap into emerging and underserved markets. For instance, you can target certain regions where businesses like yours aren’t located but have a demand for them.
Some emerging markets also include specific industries that are seeing more growth, including mobile wellness services and therapy franchises in the health and wellness industry, pet daycare and pet training in the pet services industry, and home improvement services.
Stay Ahead of the Latest Franchise Trends With Ignite Visibility
Knowing which industries are most likely to trend and other franchise trends will help you succeed in your industry. While knowledge is one thing, being able to implement it effectively is another, which is how Ignite Visibility can help.
At Ignite Visibility, we have plenty of experience working with franchise clients to help them grow, allowing them to focus on running and expanding their business while knowing their web design, sales, marketing, and other digital efforts are in good hands.
Turn to us if you would like:
- In-depth market research into your audiences and competitors
- Highly optimized marketing campaigns that utilize all relevant channels
- A reliable website and off-site marketing efforts that reach your target audiences
- Reporting and analytics for continual optimization
- And more!
To speak with a member of our team and get started, reach out to us today!
