Growing a Franchise
The franchise candidate pool is increasingly judicious. From diversifying operators to second-generation investors, here’s who is in the market now and how to appeal to them.
The casual "tire-kicker" buyer has largely exited the funnel. Now, franchisors are looking at leaner, more urgent and financially sophisticated candidates — a clear shift from just a few years ago. For development teams, the challenge is no longer generating volume; it’s recognizing that the people in front of them aren’t buying a dream. They’re making a strategic investment.
Development teams still hunting for the wide-eyed dreamer will be let down in 2026. These prospective franchisees do still exist, but the calculated investor is much more common. These people, in most cases, aren’t looking for a hobby, and franchisors must recognize this change and act accordingly.
Jerry DeFeo, vice president of franchise operations at Honey Baked Ham, says the new dynamic is defined by a distinct move toward asset diversification.
“Over the past year, we've seen a noticeable shift toward more experienced, more intentional franchise buyers,” DeFeo said. “One of the most significant trends is an investment shift into the franchise industry — more people who previously invested in the stock market or real estate are now investing in businesses as part of their diversified portfolios. This represents a fundamental change in how investors view franchise ownership.”
To sell franchises this year, you must have a clear vision of who you’ll be interacting with, and you have to adjust accordingly. A cookie-cutter approach to each interaction won’t work. The 2026 buyer pool, while consistently moving toward the sophisticated investor, still has segments defined by specific, urgent pain points.
According to DeFeo, the modern candidate pool is populated by four primary personas, each requiring a tailored narrative:
The motivation for ownership has evolved from "freedom" to "security."
In the past, franchise marketing hooked candidates on the idea of being their own boss. In 2026, the pitch must address the fragility of traditional employment. With the rise of artificial intelligence and corporate restructuring, the "safe corporate job" is no longer the baseline for security.
“We're witnessing a fundamental shift in how Americans view income security,” DeFeo said. “Traditionally, most Americans viewed employment as the most secure form of income. However, with AI and other circumstances beyond their control beginning to affect jobs, people are increasingly looking to entrepreneurship as a more secure income source.”
For franchisors, this means your value proposition must address the elephant in the room. You’re selling a business opportunity, yes, but you’re also selling safety. Stability.
“Economic uncertainty and corporate layoffs have led many professionals to rethink long-term career stability,” DeFeo said. “Franchising offers a proven model with more control over one's economic future.”
The buyer has changed, and the presentation has to change with them. In a high-interest environment, "sexy" and trendy concepts are viewed as high-risk liabilities. The 2026 buyer is looking for substance.
They want boring, predictable revenue. They want concepts that have survived recessions before. Of course, the occasional buyer will still seek a more innovative concept, but they’re becoming the exception, not the rule.
“Our brand's history and proven longevity resonate most strongly with buyers,” DeFeo said. “HoneyBaked Ham is synonymous with family holiday celebrations — we're part of their traditions year after year. This emotional connection and established presence sets us apart from newer, trendier concepts that may come and go.”
Beyond history, the modern buyer — and especially the multi-unit operator — is looking for something straightforward and scalable.
“Operational simplicity: Buyers are prioritizing concepts with streamlined systems, reasonable labor requirements and predictable daily operations,” DeFeo said. “Models that don't require extensive back-of-house buildouts or complex processes are especially attractive.”
To take it a step further, these buyers understand the danger of relying on a single revenue stream. They are looking for brands that can perform across multiple channels or markets to ensure they’re not relying on a single revenue stream to succeed.
With a more sophisticated buyer comes a more sophisticated vetting process. Separating the window shoppers from the true portfolio builders will help franchise development teams save time and make the most of their development dollars. But how?
The answer lies in consistency. The serious 2026 buyer treats the due diligence process like a structured research phase, not a hot-and-cold cycle where interest ebbs and flows.
“The key indicator is consistent engagement from the beginning,” DeFeo said. “Serious candidates follow the process methodically with steady interest — no dips, starts or stops. They're the ones we don't have to chase. In contrast, browsers tend to be sporadic and inconsistent throughout the process.”
Serious buyers also show their hand early, even if it’s subtle at first. They are financially transparent, they ask operational questions about things like real estate and staffing, not just “How much will I make?”, and they actively seek out existing franchisees for validation.
Ultimately, success in 2026 comes down to meeting these candidates at their level of sophistication. The prospective franchisee is no longer just buying a job; they are scrutinizing a business partner. By recognizing the specific persona across the table and respecting their need for security and operational clarity, development teams can stop chasing ghosts and start building a pipeline of qualified, ready-to-sign operators.
To align your development strategy with this new class of buyer, start with these actionable steps:
For more information on buyer personas and the ideal franchisee, check out these related stories on 1851 Franchise:
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