2025 Franchise Growth Benchmarks
What 460+ Brands’ Real Data Shows for Franchise Growth
Benchmark your development, conversion, engagement and opening performance against three years of anonymized FranConnect platform activity. The goal is not just to compare numbers. It is to identify where performance differs, where constraints may exist and which parts of the growth system warrant closer investigation.
Franchise brands across multiple industries and growth stages.
Tracked leads across three years of development activity.
Signed agreements observed from inquiry to award.
Locations in the growth and engagement benchmark base.
2025 Headline
Stronger Growth Was Associated With Conversion, Engagement and Opening Execution
Lead volume rose modestly while conversion efficiency improved and opening execution remained an important part of realized growth.
Conversion Efficiency Improved Sharply
Lead volume moved from 991K in 2023 to 1.062M in 2025, while lead-to-agreement conversion climbed from 0.76% to 1.50%.
Higher Engagement Was Associated With Higher Net Unit Growth
High-engagement brands showed 1.9x the net unit growth of low-engagement brands in the 2025 benchmark. The relationship is associative and does not establish that engagement alone caused the difference.
SBNO Became a Strategic Constraint
8,379 sold-but-not-opened units entered 2026, leaving substantial committed growth dependent on opening execution.
Lead-to-agreement conversion increased from 0.76% in 2023 to 1.50% in 2025.
Three-Year View
Conversion Improved Faster Than Lead Volume
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Lead volume | 991K | 1,027K | 1,062K |
| Lead-to-agreement conversion | 0.76% | 0.96% | 1.50% |
| High vs. low engagement growth multiple | 1.8x | 1.2x | 1.9x |
Only about 71K more leads entered the observed funnel in 2025 than 2023.
Conversion increased by 0.74 percentage points over the same period.
High-engagement brands showed a larger net unit growth difference versus low-engagement brands in 2025.
Vertical Benchmarks
2025 Conversion by Vertical
| Vertical | Lead-to-Agreement Conversion |
|---|---|
| QSR | 2.81% |
| Retail Food | 2.37% |
| Retail Products | 2.24% |
| Commercial & Residential Services | 1.50% |
| Personal Services | 1.28% |
| Automotive | 0.56% |
| Business Services | 0.49% |
| Full-Service Restaurants | 0.44% |
Lead Source Quality
Lead Sources Converted at Very Different Rates
| Lead Source | 2025 Conversion |
|---|---|
| Internal Network | 18.9% |
| Trade Show | 13.5% |
| Brokers | 3.9% |
| Internet | 0.9% |
| Franchise Website | 0.6% |
Internal-network leads converted at roughly 31.5 times the rate of franchise-website leads in the 2025 benchmark.
Engagement
Engagement Is a Useful Operating Signal
The benchmark shows an association between observable operating engagement and stronger unit growth.
| Year | High Engagement | Low Engagement | Growth Multiple |
|---|---|---|---|
| 2023 | +7.9 | +4.4 | 1.8x |
| 2024 | +10.7 | +8.7 | 1.2x |
| 2025 | +12.8 | +6.9 | 1.9x |
High-engagement brands opened an average of 38.6 units in 2025 versus 26.0 for low-engagement brands.
Opening Pipeline
8,379 Signed Units Were Still Waiting to Open
The sold-but-not-opened pipeline exposes the gap between selling future units and converting those commitments into operating locations.
| Segment | Units in Pipeline | % of Active System |
|---|---|---|
| Enterprise (300+ units) | 5,564 | 3.8% |
| Mid-Market (75–300 units) | 1,948 | 7.7% |
| SMB (under 75 units) | 867 | 13.3% |
Enterprise Carries the Volume
Large systems account for the majority of SBNO units in absolute terms.
SMB Has the Highest SBNO Share Relative to Active Units
For smaller systems, 867 SBNO units equal 13.3% of the active-system base, making SBNO proportionally more significant in this segment.
Opening Execution Affects When Signed Units Begin Operating
Site selection, financing, training, construction, readiness and launch all influence when contracted growth begins operating and generating revenue.
Stronger Performers
Operating Patterns Worth Investigating
Respond Faster
Measure the time between inquiry and meaningful contact and test whether faster response is associated with better progression in your own funnel.
Qualify Better
Prioritize candidate fit, intent and execution discipline, then compare progression and conversion instead of assuming more lead volume automatically produces more awards.
Manage Beyond the Signature
Treat post-signing execution as part of the growth system and measure how structured milestones, handoffs, training and visibility relate to opening performance.
Methodology
How the Benchmark Was Built
The benchmark uses anonymized, opted-in FranConnect platform activity from 2023–2025 across 460+ brands, approximately 3.4 million leads, 33,000+ signed agreements and 178,000+ locations. Brand-size segments are Enterprise (300+ units), Mid-Market (75–300) and SMB (under 75).
Lead-to-award conversion is signed agreements divided by tracked leads; net unit growth is openings minus terminations; engagement compares top- and bottom-quartile brands using operating activity signals; SBNO means a signed unit that has not yet opened.
These benchmarks are informational peer references, not legal, financial or franchise-sales guidance. Results vary by market, brand maturity and execution. Any use in prospective-franchisee materials should be reviewed by qualified franchise counsel for FDD Item 19 considerations.
See Where Your Brand Stands
Identify Where Your Growth System May Need Attention
Compare your conversion rate, lead-source performance, engagement signals and SBNO pipeline against the 2025 benchmark.
Frequently Asked Questions
What is the FranConnect Franchise Growth Benchmark?
The FranConnect Franchise Growth Benchmark is a cross-brand research benchmark built from anonymized, opted-in FranConnect platform activity across the stated 2023–2025 dataset.
Why does conversion matter more than raw lead volume?
Because the benchmark shows lead volume changed only modestly while conversion improved substantially. Speed, qualification, source mix and sales execution are operating factors worth investigating, but the aggregate benchmark does not establish which factor caused the improvement.
What is SBNO?
Sold But Not Opened: a signed franchise unit that has not yet opened and begun contributing to active system growth.
Why is engagement included in a growth benchmark?
Because engagement can provide operating context after the sale. The benchmark shows materially stronger unit growth among high-engagement brands, but the relationship should be treated as an association rather than proof that engagement caused the growth difference.
Can these benchmarks be used in franchise sales materials?
Only after review by qualified franchise counsel, particularly for FDD Item 19 implications.
About This Benchmark Dataset
This page reports findings from the FranConnect Franchise Growth Benchmark, a first-party cross-brand research dataset. Benchmark findings should be distinguished from individual FranConnect customer outcomes and from Franchise Sales Index reporting.
Put the research to work
Compare your franchise sales performance
Use FranConnect’s interactive Franchise Sales Index Comparison Tool to turn benchmark research into a directional comparison for your own franchise development funnel. For definitions, source context and limitations, review the FranConnect research methodology.
For source definitions and interpretation rules, see the FranConnect Data, Research & Benchmark Methodology.