Most Franchise Development Teams Stuck to Expansion Plans in 2024 Despite Business Challenges

By: Michael Alston for Franchise Insights

March 12, 2025 – When asked about how business conditions impacted their expansion plans in 2024, 58% of franchise development teams said they stuck to their plans, or even expanded beyond expectations.

Coincidently, this is very close to the 58.3% seen in 2023. This is following 2023 wherein, despite tumultuous business conditions and shocking news headlines, more than 58% of franchisors surveyed either stuck to their growth plans (50.0%) or increased them (8.3%). Franchises increasing their expansion plans (8.3%) in 2023 were concentrated in the middle tiers of system size. 

58% of Franchise Development teams maintained their expansion budgets or exceeded them to pursue growth in 2024. 

Franchise systems with 76-500+ U.S. units actually raised their goals and budgets as the year unfolded. Twenty-seven percent of franchise development teams representing systems with 201-500 units raised their goals during the year, the same percentage as reported by the 76-200 unit cohort. 

A full 57% of the 11-75 unit systems stuck to their plans, and had the smallest percentage cutting back significantly at 7%.

The 1-10 unit segment reported the greatest reductions in expansion plans, at about 40%, yet another 40% in that cohort increased their plans.

Franchise systems are famous for leaning into the headwinds. Inflation, tight labor markets, and regulatory uncertainty did not keep  business conditions have caused franchises to change their growth plans 

The survey, conducted in December 2024 by FranchiseInsights.com represented a cross-section of franchise development teams, from emerging systems to well-established franchises with thousands of units.

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Published on Wednesday, March 12th, 2025.