2025 IFA Franchisor Survey
IFA’s 2025 Franchisor Survey, the fourth annual survey of franchise brands highlighting economic challenges and current trends facing franchised businesses. Conducted in partnership with FRANdata, this year’s survey shows that while inflation concerns are easing, labor issues and sales remain a top challenge for franchisors.
Brought to you by Paychex, Inc., a Preferred Vendor of IFA.
Key findings from the 2025 Franchisor Survey include:
- 37% of respondents identify the availability, quality, and cost of labor as their top business challenge.
- 15% of respondents state poor sales are a concern, the second most significant, especially among personal services (42%) and QSR (23%) brands.
- 70% of respondents report that their franchisees have unfulfilled job vacancies, falling from 80% in 2024.
- 48% of franchisor executives expect franchisee total employment to increase in the year ahead, and 40% expect it to stay the same.
- At 12%, inflation concerns are the third most significant business challenge in 2025, up from 9% in 2024, but below the 2023 level of 20%.
- 66% of respondents plan to adjust wages, while 64% intend to increase efficiency as strategies to address labor challenges.
- 56% of brands report experiencing constrained growth due to labor challenges, compared to 81% in 2023.
The survey also explored questions about growth and franchisor-franchisee relationships, as part of IFA’s commitment to promote Responsible Franchising practices.
- 85% of franchisor executives report having a positive or very positive relationship between their company and its franchisees.
- 42% of franchisor executives report unit economics to be the single most important factor impacting franchisor-franchisee relationships.
- 64% of respondents believe expedited state registration options would support their franchise growth objectives.
- 54% of respondents plan to use internal franchise sales team to achieve franchise growth in 2025.
