What Are Emerging Franchise Trends Shaping Growth Today?

Franchising is shifting as brands adjust to changing consumer habits and tighter economic conditions. Opening more locations is no longer the only priority. The focus has moved toward making each unit perform and growing with more discipline. Across industries, brands are rethinking real estate decisions, using technology more intentionally and tightening their operating models.

Rethinking Real Estate in Franchise Development

Brands are approaching site selection with a sharper focus on cost control and long-term viability rather than just visibility. They are also prioritizing locations that already align with target demographics, reducing the need to build demand from scratch.

“From a fitness industry perspective, one of the most notable trends is the adaptive reuse of existing retail spaces,” said John D’Anna, chief development officer of Crunch Fitness. “Many companies are converting second- or third-generation locations into gyms, which reduces build-out costs while capitalizing on established high-traffic areas.”

These retail spaces typically offer franchise owners locational advantages, whether because of their positioning in busy shopping centers or their proximity to other established co-tenants. This goes for different industries as well, such as quick-service restaurants, medical spas and boutique retail concepts. Operators are also benefiting from shorter development timelines compared to ground-up construction, allowing them to open and generate revenue faster.

“Franchisees are finding success by not only repurposing former big-box retailers but also by getting creative with nontraditional spaces, including grocery stores and movie theaters,” D’Anna said. 

The Shift Toward Data-Driven Growth

Franchising is also increasingly becoming more data-driven and capital-efficient. Brands are placing greater emphasis on measurable performance at the unit level before accelerating expansion.

“The brands that are gaining traction are those combining predictive analytics, scalable operating models and a digitally enabled member experience to drive consistent unit-level performance,” D’Anna said. “The intersection of data, digital engagement and efficient build models is defining the next phase of growth in this category.”

This shift is also influencing how franchisors evaluate markets, using real-time data to guide territory development and pricing strategies. It is changing how franchisees operate day to day, with clearer benchmarks tied to performance. As a result, decision-making is becoming more precise across the system.

How Brands Are Adapting to Changes

Brands are adjusting their strategies to better align with how consumers live and spend their time. Convenience, accessibility and consistency are becoming central to location planning and overall experience. Operators are also thinking more carefully about how each unit fits into a broader ecosystem of daily routines.

“At Crunch Fitness, we prioritize finding locations that fit naturally into members’ daily routines, such as retail centers near grocery stores, discount retailers, or service-based businesses,” D’Anna said. “Consumers are increasingly prioritizing convenience and efficiency, and our site selection reflects that. Grocery-anchored centers align well with our peak usage times, creating mutually beneficial traffic patterns for both Crunch and co-tenants.”

Brands are also refining their in-store experience to match changing preferences and usage patterns. Layouts are becoming more flexible, allowing operators to adjust based on demand over time. This approach helps maintain relevance without requiring constant reinvestment.

“We also evolve our club layouts based on member preferences,” D’Anna said. “For example, strength training continues to gain momentum, with Crunch’s member survey showing a 36% increase year-over-year from 2024 to 2025. In response, we’re allocating more space to strength equipment and less to cardio. Our designs are intentionally flexible, allowing studios to be repurposed for multiple functions so each club can meet the evolving needs of its members over time.”

Crunch sees that consumers are seeking a more holistic, 360-degree approach to wellness. In January 2025, it launched Crunch 3.0, which is a gym experience designed to meet these new habits. Making changes like this is something the franchise says has been directly reflected in its growth. 

“In 2025, Crunch signed approximately 4.27 million square feet of space, a 48% increase from 2024, according to CoStar data, the leading global provider of real estate information,” D’Anna said. “Overall, we’re evolving with our members by combining data-driven insights with a digitally enhanced fitness experience.”

Opportunities Franchisees Should Be Paying Attention To 

Current and prospective franchisees should focus on seeking opportunities that combine strong unit economics with scalability, as well as technology-driven growth. The fitness sector, for example, continues to benefit from consumer demand for flexible, digital-first experiences.

“Operators who can leverage predictive analytics, optimized site selection, and operational efficiencies are well positioned to scale more predictably and profitably,” D’Anna said. “Ultimately, the greatest opportunities will be with brands that are innovating not only on the member experience but also on the franchisee business model, delivering top-line growth and long-term operational efficiency.”

Want to learn more about how 1851 helps franchisors grow their franchises with confidence? Visit www.1851growthclub.com and see what we can do for you.