2025 Franchising Predictions, Trends And Innovations

Pete First, Chief Development Officer at BrightStar Care and franchise expert.
This year, we can expect several trends from 2024 to further evolve and continue shaping the franchise landscape. Franchising remains a dynamic industry and a strong investment opportunity for entrepreneurs.
Based on my expertise in franchising and my time serving as the Chief Development Officer for a leading franchisor, I have compiled the following predictions for what I expect from the franchise industry in 2025.
Industry Growth
Entrepreneurs are increasingly choosing franchising over independent small business ownership, drawn by the stability, proven success rates and robust support system franchisors provide to locally owned businesses. In 2024, it was predicted that $46 billion would be spent on personal service franchising, exceeding pre-pandemic levels of approximately $42 billion. The franchise industry continues to grow as entrepreneurship gains popularity and becomes a more accessible career for more individuals.
Specifically for the industry our franchise network supports, we have been seeing a rapid increase in demand for services. With the increasing senior population, the need for quality senior care is higher than ever, creating significant opportunities for related care franchises. This trend, which gained momentum in 2024, is set to continue throughout the new year and the next several years. Franchises specializing in home care, senior care and medical services are uniquely positioned to meet this growing demand. Across the country, there is a steady increase in potential franchisees eager to address this vital need within their communities.
Technology Innovation
Franchise companies are increasingly leveraging technology to drive efficiency and growth. Notable advancements to watch in 2025 include:
• AI For Lead Generation: Franchisors are beginning to take advantage of the use of artificial intelligence for lead generation across networks. This technology is refining customer targeting and acquisition processes, making it easier to identify and connect with prospective clients.
• Operational Efficiencies: Automation tools and software solutions are streamlining operations, from inventory management to customer service interactions. These innovations allow franchisees and employees to focus on more complex and personable work, like connecting with clients and ensuring the highest standard for products or services are met.
A Bigger Pool Of Younger Franchisees
Franchising is developing into a viable career path for younger generations. Franchising no longer has to be a side career or a second act in life. This shift is in part driven by the rise of entrepreneurship-focused education programs, which introduce students to the opportunities within franchising. For example, the University of Tennessee’s Franchise Certification Program, spearheaded by our founder, provides students with the tools and knowledge needed to succeed in the industry. These programs prepare young entrepreneurs and bring fresh perspectives and innovative ideas to the franchising industry.
Multi-Unit Ownership
Multi-unit ownership continues to gain traction as a key growth strategy for franchisees and the franchise network as a whole. This approach offers franchise owners several advantages:
• Expanded Territory Reach: Owning multiple units within the same brand allows franchisees to maximize their market influence and operational synergies, creating a stronger brand presence and financial returns. Additionally, some franchisors have multiple brands under their umbrella that franchisees can invest in. These additional brands help franchisees expand their reach with new services in the same or neighboring territory.
• Cross-Industry Ownership: Diversifying investment portfolios by owning franchises across different industries is becoming increasingly popular. This strategy reduces risk and creates opportunities for collaboration and resource sharing between distinct business models, driving innovation and profitability for both brands.
• Increased Market Insights: By managing multiple locations or franchises across various industries, owners gain deeper insights into market trends, customer behaviors and operational challenges. These insights can inform smarter business decisions and help adapt to changing industry dynamics.
The franchise industry is set to thrive in 2025, bolstered by innovation, changing demographics and an entrepreneurial spirit that transcends generations. For prospective franchisees and seasoned investors alike, these trends offer a roadmap to capitalize on opportunities and achieve success. By staying adaptable and forward-thinking, the franchise community can navigate the evolving landscape and continue to flourish in the years ahead.
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