Franchising Trends in 2025 You Can’t Ignore

The franchising world is evolving faster than ever, with new trends shaping how businesses operate and grow. Staying ahead of these trends can give franchise owners a competitive edge and help them attract modern consumers. In 2025, technology, sustainability, and consumer expectations are driving innovations in the franchise industry. Here are the top trends you can’t afford to ignore if you want your franchise to thrive.

1️⃣ Tech-Driven Customer Experience 🤖

Franchises are leveraging technology to improve every aspect of the customer journey, from ordering and payments to personalized recommendations and loyalty programs. Innovations such as AI, automation, and mobile apps are reshaping how businesses interact with their clientele.

How It’s Impacting Franchising:

  • Self-Service Kiosks: Quick-service restaurants (QSRs) are increasingly using touch-screen kiosks, allowing customers to place orders quickly without waiting in line. This reduces labor costs while speeding up service times.
  • AI-Powered Recommendations: AI algorithms analyze customer behavior to provide personalized product or service recommendations. For example, digital drive-thru systems can suggest menu items based on previous orders or popular seasonal choices.
  • Mobile Apps and Loyalty Programs: Many franchises are enhancing customer engagement through branded apps that offer rewards, mobile ordering, and digital payments. These apps can collect data to optimize marketing and promotions.
  • Virtual Assistants and Chatbots: Automated chat features on websites and apps allow franchises to handle customer inquiries 24/7, reducing wait times and improving service efficiency.
  • Contactless and Cashless Payments: As customers prioritize convenience and safety, cashless payment methods such as mobile wallets, QR codes, and tap-to-pay have become standard.

Why It Matters:
Consumers expect fast, convenient, and tailored experiences. Franchises that adopt technology not only improve operational efficiency but also enhance customer satisfaction and loyalty. In industries like food service, retail, and fitness, tech-driven solutions can reduce overhead costs and increase scalability.

Challenges:

  • Implementing new technologies can require significant upfront investment and staff training.
  • Franchisees may be hesitant to adopt new systems without clear ROI projections.

FranchiseDev Tip: 🤖 Optimize Data Usage: Use customer data from loyalty apps, kiosks, and digital interactions to create personalized promotions and drive repeat business.


2️⃣ Focus on Sustainability and ESG Initiatives 🌱

Sustainability and ESG (Environmental, Social, and Governance) practices refer to efforts to reduce environmental impact, promote ethical business operations, and enhance social responsibility. In 2025, these initiatives have become a major factor influencing consumer and investor decisions.

How It’s Impacting Franchising:

  • Eco-Friendly Operations: Many food and retail franchises are switching to sustainable packaging, such as compostable or biodegradable materials, to reduce plastic waste.
  • Energy Efficiency: Franchises are investing in energy-saving solutions like LED lighting, solar power, and energy-efficient kitchen equipment.
  • Supply Chain Transparency: Consumers are demanding visibility into where ingredients and products come from. Franchises are building relationships with local suppliers to emphasize sustainability and ethical sourcing.
  • Community Impact: Franchises are participating in programs like tree-planting initiatives, employee volunteering, and community outreach events to foster goodwill and attract socially conscious customers.

Why It Matters:
A strong ESG strategy not only enhances a brand’s reputation but also attracts customers who prioritize sustainability. Moreover, many investors are favoring businesses with clear environmental and social impact policies, making franchises with ESG commitments more appealing for expansion funding.

Challenges:

  • Implementing ESG practices may initially increase operational costs.
  • Educating franchisees and employees about sustainability initiatives is essential for consistent execution across locations.

FranchiseDev Tip: 🌍 Start Small: Focus on one or two impactful ESG changes—such as eliminating single-use plastics or offering plant-based menu options—before expanding your initiatives.


3️⃣ Health and Wellness-Focused Offerings 🏋️‍♂️

Franchises are increasingly integrating health and wellness into their business models to cater to a growing demand for healthier lifestyles. This trend extends beyond traditional fitness centers and into food, beauty, and lifestyle franchises.

How It’s Impacting Franchising:

  • Healthier Food Options: Quick-service and fast-casual restaurants are adding more organic, plant-based, and low-calorie menu options. Many franchises are also labeling nutritional information more prominently to appeal to health-conscious diners.
  • Fitness and Recovery Services: Franchises specializing in fitness and wellness, such as boutique gyms, yoga studios, and cryotherapy centers, are expanding rapidly. Wellness trends like recovery services (e.g., infrared saunas, physical therapy) are being incorporated into traditional fitness franchises.
  • Mental Health & Self-Care: Beauty, spa, and lifestyle franchises are promoting mental wellness through services like meditation rooms, stress-relief treatments, and mindfulness workshops.
  • Workplace Wellness: Some franchises are investing in employee wellness programs to boost productivity and reduce turnover by offering mental health resources, gym memberships, and healthier workplace meals.

Why It Matters:
Consumers are increasingly prioritizing their physical and mental well-being, especially after the global focus on health during the pandemic. Franchises that meet these needs can not only attract loyal customers but also differentiate themselves in a crowded market.

Challenges:

  • Implementing wellness-related initiatives may require retraining staff and updating infrastructure.
  • Competition is increasing as more businesses enter the health and wellness space.

FranchiseDev Tip: 💪 Stay on Trend: Keep track of emerging wellness trends—such as functional foods or recovery technology—and integrate them early to stay ahead of competitors.


4️⃣ Rise of Multi-Unit Franchise Ownership 🏢

More entrepreneurs are expanding their franchise portfolios by owning multiple units of the same brand or even franchises from different industries. This trend is driven by the potential for increased revenue streams and economies of scale.

How It’s Impacting Franchising:

  • Consolidated Operations: Multi-unit owners streamline management by sharing resources like staff, marketing, and supply chains across locations.
  • Access to Better Deals: Franchisees with multiple locations often receive preferential terms from franchisors, including lower fees and expanded territory rights.
  • Cross-Industry Diversification: Some franchise owners invest in different types of businesses (e.g., a restaurant and a fitness center) to spread risk and capture multiple revenue streams.

Why It Matters:
Multi-unit ownership helps franchisees build larger, more profitable businesses while maintaining operational control. Franchisors also benefit from partnering with experienced, growth-oriented operators.

Challenges:

  • Managing multiple units requires skilled leadership and well-trained teams.
  • Overexpansion can lead to resource strain if operations are not carefully scaled.

FranchiseDev Tip: 🏗️ Develop a Growth Plan: Start with a solid foundation by mastering operations at one location before expanding to additional units.


5️⃣ Franchise Expansion Into Global Markets 🌍

Franchises are increasingly targeting international markets to fuel growth. Brands are adapting their offerings to fit regional tastes, regulations, and cultural preferences in new territories.

How It’s Impacting Franchising:

  • Localized Offerings: Successful international franchises tailor menus, services, and marketing strategies to match local customs and consumer preferences. For example, fast-food franchises in Asia may offer regional specialties alongside core products.
  • Franchise Partnerships: Many franchisors collaborate with local partners who understand regulatory frameworks and have established networks, making expansion smoother.
  • Currency and Economic Trends: Franchisors are paying closer attention to currency fluctuations, labor costs, and economic stability to ensure profitability in foreign markets.

Why It Matters:
Expanding into new regions allows franchises to diversify their revenue sources and capitalize on growing demand in emerging markets. Global expansion also increases brand visibility and credibility.

Challenges:

  • Navigating foreign regulations, labor laws, and trade agreements can be complex.
  • Cultural missteps may harm a brand’s reputation if local customs are not respected.

FranchiseDev Tip: 🌎 Start with Key Markets: Focus on high-growth regions with strong franchise potential, such as the Middle East, Southeast Asia, and Latin America, to maximize early success.


6️⃣ Growth of Mobile and Pop-Up Franchises 🚚

Mobile and pop-up franchises, including food trucks, mobile services (e.g., pet grooming, auto detailing), and temporary retail shops, are gaining popularity due to their flexibility and lower startup costs.

How It’s Impacting Franchising:

  • Low-Cost Entry: Mobile franchises require less capital compared to traditional brick-and-mortar locations, making them attractive to first-time franchisees.
  • Location Flexibility: Mobile units can move to high-traffic areas, events, or underserved neighborhoods, increasing visibility and sales opportunities.
  • Temporary Market Testing: Pop-up locations allow franchises to test new markets or concepts without long-term leases or commitments.

Why It Matters:
Consumers are drawn to the convenience and novelty of mobile and pop-up businesses. For franchisees, these models offer the chance to generate revenue quickly and scale operations with lower risks.

Challenges:

  • Navigating local regulations and permits for mobile operations can be time-consuming.
  • Mobile units have limited storage and capacity, which can affect inventory and service speed.

FranchiseDev Tip: 🚛 Target Events: Participate in local festivals, fairs, and markets to maximize exposure and sales opportunities for your mobile franchise.


7️⃣ Emphasis on Franchisee Support and Training 📚

Franchisors are investing heavily in comprehensive support and training programs to ensure franchisees can operate successfully. This includes ongoing coaching, digital learning platforms, and peer mentorship programs.

How It’s Impacting Franchising:

  • Enhanced Onboarding: Many franchisors now offer immersive training experiences that include both classroom and on-site learning to prepare franchisees for real-world operations.
  • Continuous Learning: Franchisors are providing ongoing education on topics like marketing strategies, technology updates, and industry trends to keep franchisees competitive.
  • Mentorship Programs: Experienced franchisees are mentoring new owners, offering practical advice and guidance to help them avoid common pitfalls.

Why It Matters:
Strong support systems increase franchisee success rates and strengthen brand reputation. Well-trained franchisees are more likely to achieve profitability and maintain long-term partnerships with the franchisor.

Challenges:

  • Implementing large-scale training programs can be costly for franchisors.
  • Franchisees may struggle to apply theoretical training to their specific market challenges.

FranchiseDev Tip: 📖 Focus on Leadership: Encourage franchisees to develop leadership skills, which can improve employee retention and overall business performance.


8️⃣ Personalized Marketing Through Data Analytics 📊

Franchises are increasingly using data-driven marketing to deliver personalized experiences to their customers. By analyzing purchase behavior, demographics, and engagement patterns, franchise owners can create targeted campaigns that resonate with local audiences.

How It’s Impacting Franchising:

  • Localized Promotions: Franchises can offer location-specific promotions based on regional buying habits and trends.
  • Loyalty Programs: Advanced loyalty programs track customer preferences, allowing businesses to offer rewards and recommendations tailored to individual users.
  • Social Media Targeting: Data analytics tools help franchises optimize social media ads by targeting specific audience segments for better engagement.

Why It Matters:
Personalized marketing increases customer satisfaction and loyalty by making interactions more relevant and engaging. It also boosts conversion rates, leading to higher sales and improved ROI.

Challenges:

  • Collecting and managing customer data must comply with privacy regulations like GDPR and CCPA.
  • Franchisees may need additional training to understand and use marketing analytics effectively.

FranchiseDev Tip: 📈 Leverage Automation: Implement marketing automation tools to deliver timely, personalized messages without requiring constant manual oversight.


9️⃣ Franchise Models with Subscription Revenue 💳

More franchises are adopting subscription-based revenue models to create consistent, recurring income streams. This trend is popular in industries like fitness, beauty, and food services.

How It’s Impacting Franchising:

  • Predictable Cash Flow: Monthly or yearly subscriptions provide a steady revenue base, helping franchisees manage cash flow and plan long-term investments.
  • Increased Customer Retention: Subscribers are more likely to stay loyal, especially when they receive exclusive benefits or discounts.
  • Expansion of Services: Franchises are developing subscription options for various offerings, such as meal plans, wellness programs, and premium services.

Why It Matters:
Subscription models enhance customer loyalty and generate recurring revenue, making it easier for franchisees to forecast profits and sustain growth.

Challenges:

  • Maintaining high subscription value requires ongoing service improvements and customer engagement.
  • Scaling subscription services may require new infrastructure, such as inventory management systems or dedicated customer support.

FranchiseDev Tip: 💳 Offer Free Trials: Attract customers by offering trial subscriptions to showcase the value of your services before asking for a long-term commitment.


🔟 Increased Focus on Diversity and Inclusion Initiatives 🌐

What It Is:
Franchisors are prioritizing diversity and inclusion (D&I) in their recruitment, training, and customer engagement strategies. This includes efforts to attract franchisees from underrepresented groups and create inclusive work environments.

How It’s Impacting Franchising:

  • Franchisee Recruitment: Many franchisors are launching programs to support minority-owned and female-owned franchisees through mentorship, grants, and reduced fees.
  • Employee Training: Diversity training programs are being implemented to promote inclusive workplaces and customer experiences.
  • Community Engagement: Franchises are focusing on outreach initiatives that reflect the cultural diversity of their local markets, helping to strengthen brand trust and loyalty.

Why It Matters:
Diversity and inclusion initiatives not only improve internal culture but also enhance brand reputation and customer connections. Franchises that prioritize inclusivity are more likely to attract a broader range of customers and talent.

Challenges:

  • Implementing D&I programs across multiple franchise locations can be logistically challenging.
  • Ensuring consistent application of these programs requires strong leadership and accountability.

FranchiseDev Tip: 🌍 Create D&I Goals: Set measurable diversity and inclusion goals for your franchise network and track progress regularly to ensure long-term success.


Franchising in 2025 is evolving in response to technological advancements, customer expectations, and global challenges. By staying ahead of these trends—whether through personalized marketing, sustainability efforts, or enhanced franchisee support—you can position your franchise for long-term growth and success. Adapt, innovate, and embrace change to maintain a competitive edge in an ever-shifting landscape. 🚀

Article Summary

FranchiseDev: 10 Franchise Trends in 2025 You Can’t Ignore
Trend Explanation Why It Matters FranchiseDev Tip
Tech-Driven Customer Experience Franchises are using AI, mobile apps, self-service kiosks, and automated systems to create personalized, seamless experiences. Improves customer satisfaction, reduces labor costs, and enhances loyalty. 🤖 Focus on technology that integrates with your existing systems.
Sustainability and ESG Initiatives Franchises are adopting eco-friendly practices, ethical sourcing, and community engagement programs. Enhances brand reputation, attracts conscious consumers, and aligns with investor priorities. 🌱 Start with impactful changes like reducing plastic waste.
Health and Wellness Offerings Franchises are adding health-conscious services and products, including fitness programs, plant-based options, and mental wellness services. Responds to growing consumer demand for holistic well-being and lifestyle improvements. 💪 Incorporate wellness trends early to stay ahead of competitors.
Rise of Multi-Unit Ownership Entrepreneurs are expanding their portfolios by owning multiple franchise units across different industries. Generates higher revenue and allows for resource sharing across locations. 🏗️ Master one location’s operations before scaling to more units.
Global Market Expansion Franchises are tailoring offerings and marketing to local cultures as they expand into international markets. Diversifies revenue streams and builds global brand visibility. 🌍 Focus on regions with high-growth potential like Southeast Asia.
Mobile and Pop-Up Franchises Franchises are embracing mobile units and pop-up shops to reach new customers with lower overhead costs. Offers flexibility and allows for market testing without permanent locations. 🚚 Target high-traffic events and neighborhoods for maximum visibility.
Franchisee Support and Training Franchisors are investing in advanced training programs and ongoing support to boost franchisee success rates. Ensures consistency, increases franchisee retention, and improves profitability. 📖 Encourage leadership development to enhance operational efficiency.
Personalized Marketing with Data Data analytics are enabling highly targeted marketing campaigns that cater to local and individual customer needs. Increases customer loyalty and maximizes marketing ROI through personalization. 📈 Use automation tools to streamline personalized promotions.
Subscription Revenue Models Franchises are offering subscription services to create consistent, recurring income streams. Provides predictable cash flow and increases customer retention. 💳 Offer free trials to attract long-term subscribers.
Diversity and Inclusion Initiatives Franchisors are prioritizing diversity and inclusion in franchisee recruitment, employee training, and community outreach. Enhances brand reputation and attracts diverse talent and customers. 🌐 Set measurable D&I goals to track and improve progress.