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.