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Are leads down for other brands in 2025? Are franchisees not buying as much? How do I compete in this crazy franchise world for more deals? What are the new franchise metrics?Before diving into each part of this complex question, let’s look at the competitive equation, as it will help you see the depth of challenge and the depth of opportunity.&nbsp;<ul><li>Every brand competes against the franchise brokers.</li><li>Franchise brokers are becoming desperate for deals – as more brokers are born each day – taking away deals; and there is an uptick to franchise sales deception (it is up to franchisors to solve this).</li><li>Go back 24 months, you won’t see many restaurant brands in the broker ecosystem. Now, there are brands populating the inventory in the restaurant space that showcase subpar numbers. The challenge isn’t overselling and hyping up a brand. It is the failure of performance once the franchisee opens and gets activated.</li><li>Failure of performance slows development agreements. Slowing developing agreements turns into a major double edged sword in that multi-unit agreements are the norm, thus, the territory is cannibalized and limited.</li><li>Investment costs are skyrocketing – and franchisors are not innovating enough to pull up the AUV. There are solutions in the construct of the business opportunity – ie, the Grand Opening Marketing costs aligned to customers acquisition cost and the lifetime value of the customer.</li><li>There are plenty of deals, just franchisors are not spending enough to create the snowball effect. The brands that spend right are the ones who gain the momentum others want. The challenge is where does the capital come from? What is the proper investment? Is it the franchise fee? Should we rework the franchise fee to be called the franchisee acquisition fee? Or onboard fee? Something that creates more transparency?</li></ul>In 2025, franchising isn’t slipping—it’s evolving. Lead volumes vary by brand and category and investment, but the overall ecosystem remains robust. Brand expansion remains real, even amid higher costs.Still, some brands are indeed finding leads more elusive. Many franchise development teams report rising cost-per-lead across platforms like Google, Meta, broker networks, and portals—and yet they’re doubling down on the same channels. In short: leads haven’t dried up, but they’ve become more expensive and competitive for some (which if you look at deal value you can get to a fair number to budget for investment).&nbsp;As for franchisees, whether they’re buying less depends on how well brands adapt. Systems that shift from quantity to quality—focusing on lead-fit over volume—are keeping pace. Broader macroeconomic headwinds may slow certain verticals, but sectors like personal services and fast-growing regions in the Southeast and Southwest are thriving.So what's the path forward in this fractious, cost-intensive franchise arena? First, diversify your lead channels. While Google remains ubiquitous, Meta growth is surging, content creation is growing the fastest, and even TikTok is gaining traction. Spread your model across content, PR, digital, localized, and referral-heavy systems to avoid overpaying for leads.Second, tighten your metrics—Franchisors are adopting more granular analytics. Key new metrics include net unit growth (accounting for closures too), territory saturation and penetration, lead-to-close ratios, and development cost per franchisee (including broker fees, salaries, and media). Capturing these will help you invest smarter, not harder.Third, pivot toward local and data-informed campaigns. National branding still matters, but local traction is king. Franchisors who empower franchisees with adaptable, data-driven marketing toolkits are capturing more wins.Fourth, lean into emerging sectors. In 2025, franchises in health and wellness, pet services, eco-friendly businesses, home improvement, and tech-enabled education are attracting investors due to rising consumer demand and strong recurrence models. If you are not in these spaces, create content that focuses on this buyer – educate then why they should consider your brand. Leverage franchisees (their backgrounds and stories) that align to those hot sectors.2025 franchising is not weaker—it’s smarter. While leads are pricier and the competition fiercer, brands that diversify acquisition, master modern metrics, localize then scale effectively, and lean into high-demand niches will stand out. It’s less about chasing volume and more about sharpening your edge.We dove in on this month’s discussion.

1851 Coffee & Analytics image with photo of Nick Powills

Franchise Growth in 2025: Strategies for More Leads & Deals

1851 Franchise

In a fractious, cost-intensive franchise space, franchisors must adapt. Diversify lead channels, adopt new metrics, focus on data-informed campaigns and lean into emerging sectors to grow smarter.

The New 2025 Franchise Metrics: How to Invest Smarter, Not Harder

the-new-2025-franchise-metrics

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