We saw frandev trends in the US improve in Q1 of 2025. Let’s take a deeper look at how interest in franchise sales has ebbed and flowed over the last few years, and what we expect to see in the months ahead.
Reshift Media works with dozens of franchise organizations on digital marketing strategies to attract new franchisees to their networks. We’ve also developed Franify, the world’s most popular franchise development digital marketing platform. As such, we have a front-row seat when it comes to trends in franchise lead generation.
Armed with data from Q1, we compiled our findings into a free video, exploring how many people in the US were searching for franchise-related keywords during this time period, how it compared to previous years, what we expect to see in the months ahead, and some strategies franchise organizations should take to stay competitive. Watch it now:
One of the main indicators of interest in franchise buying is how many people search for franchise-related terms such as “own a franchise” and “buy a franchise.” We evaluate dozens of keywords and phrases, looking at Google Trends to approximate interest based on how much or how frequently people search for franchise development terms on Google.
We also plotted the trends against changes in interest rates by the Federal Reserve. In the chart below, the red lines are every time there was an interest rate hike, and the green lines represent interest rate cuts. In 2022 and early 2023, there was a prolonged period where the interest rate rose every few months, which corresponds with decreases in search volume for keywords related to franchise buying. This doesn’t necessarily mean that interest rate increases lead to less interest in franchising; instead, it corresponds to economic confidence. The Federal Reserve tends to raise interest rates if inflation is getting too high or the economy isn’t performing the way they want. Prospective franchisees may be reluctant to start a new business in periods of economic uncertainty. Conversely, when interest rates were cut (as indicated in the green lines), we saw an increase in searches about buying franchises. The cuts in late 2024 increased consumer confidence in the economy, resulting in a lot more enthusiasm for franchising going into Q1 of 2025.
Compared to the same period last year, Q1 of 2025 saw an increase of 12%, the largest increase we’ve seen in years. This aligns with a report we released late last year, predicting increased interest in franchise opportunities going into the new year.
However, the increased interest in franchise opportunities may be unique to the United States. While franchise interest increased YOY by 12%, we’re seeing a decrease in other countries. Canada, for instance, saw a 13% decrease YOY despite historically being very aligned with US trends. This was largely driven by the economic uncertainty felt by Canadians. Tariffs, international trade disruptions, and volatile stock markets dampened enthusiasm for starting a business in the early months of 2025.
While we expect 2025 to be a very strong year for franchise development in the United States, we also expect online competition to increase. This will likely result in higher costs per lead than we’ve typically seen. Franchise organizations should have a strong strategy in place to take advantage of increased franchise purchase interest and stay ahead of their competitors. In our video, we outline a variety of digital marketing initiatives that have proven to be successful with our clients. If you’re looking for strategies personalized to your unique franchise network, please reach out to our digital marketing experts.
