Changes in Cost Per Lead for Top Paid Franchise Development Lead Generation Sources

By: Michael Alston for Franchise Insights

February 16, 2026 – Most systems responding to the 2026 Franchise Development Lead Generation Survey reported increased overall spending on lead sources in 2025, along with changes in usage. Fully one-third experienced higher costs per lead, which was a factor for most sources.

 Meta (Instagram and Facebook platforms) rose to first place in usage in 2025 by staying almost flat at 76.9%, though 39% of respondents reported that lead costs increased somewhat (31.8%) or significantly (10.1%).

In 2025, 75.6% of franchisors employed Google paid advertising (including YouTube), down from 87% in 2024, as 39% of franchisors reported that lead costs increased somewhat (32.5%), or significantly. (6.5%).

Brokers or Referral Networks eased to fourth in usage in 2025, as Meta (Instagram/Facebook) took first place with roughly flat usage while Google dropped.

Franchise directories or “portals” as a category grew usage the most (in absolute percentage) from 68.6% to 74.4% (a difference of 5.8%). Cost per lead for this lead source, however,  was seen increasing by only 36.4% of systems responding –  32.5% somewhat and 3.9%  significantly. Franchise Insights is sponsored by Franchise Ventures, the largest lead generation platform.

The “brokers and referral networks” category grew from 73.9% usage in 2024 to 74.1% in 2025, moving to fourth place in usage among paid lead sources. Cost per lead for this source as a category was seen increasing overall by 31.2% of systems,  somewhat by 28.6%, and by 2.6% increasing significantly. This source showed the second lowest change in cost per lead from 2024-2025, other than TikTok at 1.3%.

Franchise Portals as a category had the least change in cost per lead among the top three sources, and grew the most in 2025 usage, according to survey respondents.

LinkedIn was used by 52.2% of franchise development teams, up from 46% in 2024. Effective per lead costs at LinkedIn were seen increasing by 33.3% of respondents, as 26.9% of them reported costs increasing somewhat, and another 6.4% significantly.

TikTok was used by only 20.8% of franchise developers in 2025, down from 21.7% in 2024, as experimentation decreased in the face of an imminent ban of the app to U.S. users. At the same time, only 1.3% of respondents showed lead costs at TikTok increasing somewhat, and none said they increased significantly.

Supporting the validity of data from the Franchise Insights 2026 Franchise Development Lead Generation Sources survey, a broad cross-section of franchise development teams participated, from emerging systems to well-established franchises with many thousands of units.

FranchiseInsights.com surveys franchisors periodically to get a pulse on the industry, provide benchmarking and identify franchise development best practices. This survey was conducted in early January 2026.

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Published on Monday, February 16th, 2026.