Every year, franchise brands look for new ways to grow  but not every brand grows the same way. While some expand aggressively through sales, others invest in the systems and relationships that help franchisees perform better over time.  

The question is no longer who’s selling more units, but who’s keeping them open and profitable. 

That question behind is Franchise Growth Decoded, our largest data analysis to date. Drawing on insights from over 850 franchise brands across industries, the study reveals what separates the fastest-growing franchise systems from the rest and the findings are redefining what sustainable growth looks like in 2026. 

Why the Data Matters 

For decades, the franchise industry has measured growth primarily by sales aka the number of new units opened each year. But sales alone don’t tell the full story. A brand can open hundreds of locations and still struggle with closures, disengaged operators, and inconsistent customer experiences. 

By analyzing 24 months of longitudinal data (2023–2024) from FranConnect’s anonymized customer base, this report looks deeper by connecting the dots between operational behavior and growth outcomes.  

Using Frannie AI, FranConnect’s proprietary AI data analyst, FranConnect’s proprietary AI,  the research identifies statistically significant patterns in how brands manage training, coaching, onboarding, and field support. 

The reasoning is simple: success in growth is not reliant on expansion alone. Retention, engagement, and execution must all be considered. 

Engagement as a Growth Engine 

One of the most striking findings in the report is the link between franchisee engagement and system-wide performance. Across all industries, engagement metrics surged. Course completions grew nearly 60%, document downloads rose 59%, and audit-focused visits doubled year over year. 

These trends reflect more than enthusiasm. They also signal a cultural shift. Franchisees are actively seeking guidance, structure, and resources to help them improve. Brands that meet this demand by investing in field coaching, ongoing training, and clear playbooks are reaping measurable rewards. 

In fact, highly engaged systems achieved 8.7% growth, compared to just 2.9% among low-engagement peers. Engagement creates alignment, and alignment fuels profitability. 

The Retention Effect 

Retention may not grab headlines like new sales, but its impact on performance is undeniable. The study found that termination rates dropped nearly 100 basis points in 2024, representing over 1,300 saved locations across the FranConnect cohort. That improvement alone accounted for a 22% lift in performance against the industry forecast. 

For large brands, improved retention was the single greatest contributor to outperformance. For emerging and mid-sized systems, it created breathing room that allowed resources once spent replacing lost franchisees to instead focus on expansion and optimization. 

In practical terms, retention isn’t just about keeping doors open. It’s about reinforcing confidence within the network. Every franchisee that stays and grows becomes a proof point for future development. 

How Top Brands Are Outperforming the Market 

The data confirms what the industry has long suspected but struggled to prove: operational discipline drives measurable growth.  

Brands leveraging integrated systems where franchisee training, communication, and performance are managed in one connected platform grew at twice the industry average (5.5% vs. 2.6%). 

The Multi-Unit Reality 

The data also highlights an accelerating reliance on multi-unit development as a growth strategy. More franchisors are awarding multiple territories to experienced operators, streamlining the sales process while expanding market presence more efficiently. 

However, this approach introduces new operational challenges. Multi-unit growth increases complexity, demanding deeper collaboration, stronger communication, and consistent performance management. Brands that succeed in this model invest heavily in onboarding systems, territory activation processes, and ongoing franchisee coaching. 

What This Means for Franchise Leaders 

Whether you’re leading a mature system or scaling an emerging brand, the message is clear: growth without execution is fragile. By focusing on engagement, retention, and operational alignment, you can accelerate expansion without sacrificing quality or control. These capabilities are what transform good brands into great ones and they’re the foundation of the FranConnect platform. 

As the franchise landscape becomes more complex, data-driven decision-making has become the new differentiator. The Franchise Growth Decoded report offers a roadmap for navigating this shift grounded in evidence, not theory. 

Download the full report today to learn how 850+ franchise systems are redefining growth, increasing retention, and turning operational execution into measurable success. 

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In the beginning, instinct feels like enough. 

A founder knows their customers, understands their franchise model, and can sense when things are going well. That gut-level awareness works when there are only a few locations to watch over.

But the picture changes quickly. At 10 or more units, patterns start to blur. Sales performance varies, openings run late, and some franchisees quietly drift away from brand standards. Without clear data, it becomes impossible to tell which problems are isolated and which signal a larger issue.

This is why early data matters. 

The numbers you track in your first 10 units are more than reports. They become the blueprint for how well your system will scale at 25, 50, or 100 locations. With the right franchise analytics in place, you move from guessing to growing with confidence.

Why Early Data Matters More Than You Think

Many founders think structured data collection can wait until their brand is larger. At three or four locations, it feels easy enough to manage performance by memory or through quick conversations with franchisees. Spreadsheets seem to do the job.

But growth introduces complexity fast. By the time you reach 10 or 15 locations, gut instinct is no longer reliable. A few late openings, small compliance gaps, or missed sales opportunities can snowball into costly setbacks. What feels like “a minor issue” at one store often signals a trend that could affect the entire network.

Early data is powerful because it shapes the way you run your system from the start. The metrics you decide to track, and how you use them, become the foundation for smarter decision-making. In practice, they act like a blueprint, revealing patterns you can refine, risks you can prevent, and strengths you can scale.

The Core KPIs Emerging Brands Should Track

The goal is to focus on the numbers that reveal whether your franchise system is healthy and growing. For emerging brands, three KPIs stand out as the most important.

Franchise Sales Velocity

This measures how quickly prospects move through your development funnel, from first inquiry to signed agreement. Slow velocity often means leads are slipping through the cracks or that your process lacks structure. Faster velocity shows your sales engine is tuned and your pipeline is healthy.

Location Readiness

Every new unit needs to hit milestones on time: site approval, build-out, staffing, training, and opening. Tracking readiness ensures that stores open when they should and begin generating revenue as planned. Without it, openings get delayed, investors lose patience, and franchisees start questioning support.

Operational Compliance

Consistency is the hallmark of any strong franchise brand. Monitoring whether franchisees follow brand standards protects your customer experience and safeguards your reputation. Compliance data also helps you identify which owners need more support before problems spread.

Together, these KPIs act as an early-warning system. They give you clarity on what’s working, where you’re falling behind, and where to direct your attention before small issues become system-wide challenges.

Making Franchise Analytics Accessible to Everyone

Collecting data is only the first step. 

The real value comes when the right people can see and act on it. Too often, early-stage franchises keep reports locked in spreadsheets or dashboards that only the founder reviews. That creates bottlenecks and slows decision-making.

The smarter move is to give each stakeholder access to the metrics that matter most to them. Franchisees should see their compliance scores, training completion rates, and sales performance. Field consultants need visibility into how units are operating so they can coach owners and identify risks. Executives and founders benefit from roll-up dashboards that show system-wide health and trends across multiple locations.

When data is shared this way, accountability improves. Decisions happen faster because no one is waiting for reports. Franchisees feel supported rather than monitored, because they can see exactly how their performance ties back to brand standards and growth goals. The result is a culture where data becomes a tool for improvement, not just a record of past performance.

The Competitive Advantage of Early Data Collection

Think of your first 10 units as more than new locations. They are a laboratory for your entire growth strategy. Each data point you collect during this stage tells a story about how your system performs in the real world.

One franchise might notice that every delayed opening traces back to the same missed milestone in site readiness. By documenting the problem and adjusting their playbook, they cut future opening times by weeks. 

Another brand may discover that franchisees with higher early training completion rates consistently outperform others in first-year sales. That insight shapes how they prioritize onboarding for every new unit that follows.

Patterns like these are only visible if you start measuring early. By the time you reach 25 or 50 locations, it is too late to recreate the data you missed. Brands that collect early insights build a roadmap for scalable growth, while those that delay often repeat the same mistakes at greater cost.

Early data also builds credibility. Investors, prospective franchisees, and partners want proof that your system is working. Concrete numbers on sales velocity, readiness, and compliance demonstrate that you have more than passion. You have a business model that scales.

Building a Data Culture From the Start

For emerging brands, building a culture around data is less about technology and more about mindset. The goal is not to have the most advanced system. It is to create habits where numbers guide decisions at every level of the business.

Start simple. 

A lightweight dashboard that tracks sales velocity, location readiness, and compliance is enough to provide clarity. Use it consistently so every new location opening or franchisee onboarding experience adds to the record of what works and what needs fixing.

Make data part of every role. 

Franchisees should expect to review their compliance and training results. Field consultants should use performance numbers to coach owners, not just audit them. Executives should reference KPIs when setting goals or allocating resources. When everyone has visibility, accountability becomes shared.

Encourage storytelling through data. 

Numbers are not just statistics. They are indicators of effort, execution, and outcomes. A spike in onboarding completion shows commitment. A dip in readiness scores signals where support is needed. Treating data as a narrative keeps teams engaged and invested in improvement.

When data habits start early, they scale naturally. By the time your brand reaches 25 or 50 units, you are not scrambling to put systems in place. You already have a blueprint built on years of insight that guides decisions and fuels growth.

Start Collecting the Blueprint Today

Data is more than a set of numbers. For emerging franchises, it is the story of where your brand is headed. The insights you collect in your first 10 units become the blueprint for how well you scale at 25, 50, or even 100 locations.

Brands that wait too long to build this foundation often repeat mistakes at greater cost. Brands that start early gain foresight, credibility, and a system that improves with every new opening.

If you want to know which KPIs matter most and how to use them to build a franchise that grows with confidence, download From One to Many: A Growth Guide for Emerging Franchise Brands. It offers practical checklists and strategies to help you turn data into a clear roadmap for scalable success.

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The Challenge: Speed Defines Success 

In franchise sales, every minute matters. A motivated lead can arrive at any hour – evenings, weekends, or holidays. The brand that responds first usually wins. 

The FranConnect Franchise Sales Index (2024) shows: 

• Leads contacted within 30 minutes are nearly 2x more likely to convert. 

• Fewer than 13% of franchisors consistently meet this benchmark. 

When response times lag, candidates don’t wait – they move on to competitors. 

Rising Expectations in Franchise Development 

Today’s candidates are informed, selective, and comparing multiple brands at once. They expect: 

• Instant engagement → Immediate acknowledgement when they inquire. 

• Accurate information → Royalties, investment, training, and support, delivered precisely. 

• Seamless experience → Professional, consistent interactions across every touchpoint. 

Development teams can’t meet this standard manually. Scale requires automation. 

Candidate Coach in Action 

Candidate Coach, embedded in FranConnect Sales, ensures no lead is ever left waiting: 

• Immediate SMS & 24/7 Availability → Acknowledges every lead in seconds. 

• Smart Scheduling → Books discovery calls and manages reschedules automatically. 

• Brand-Trained Coaching → Powered by FDDs, playbooks, and compliance libraries. 

• Centralized Recordkeeping → Logs every interaction in FranConnect Sales. 

• Automated Re-Engagement → Follows up with silent leads and no-shows. 

The result: faster response, consistent engagement, and more time for teams to focus on qualified candidates. 

Powered by Frannie AI 

Candidate Coach is built on Frannie AI, FranConnect’s proprietary AI platform designed exclusively for franchising: 

• Generative AI Engine fine-tuned for franchise sales workflows. 

• Dynamic Knowledge Orchestration pulls brand-approved content instantly. 

• Compliance Guardrails with A2P 10DLC protections and full audit logging. 

• Agentic Workflows manage the candidate journey end-to-end: acknowledge → qualify → schedule → re-engage. 

This ensures engagement that is fast, compliant, and aligned with brand standards. 

Why Candidate Coach Outperforms Generic AI Bots 

Bottom line: Candidate Coach connects AI-driven engagement directly to operational execution – something generic bots cannot deliver. 

Built for Sales Leaders 

Candidate Coach delivers measurable value across the sales organization: 

• Reps → Focus on qualified candidates instead of chasing cold leads. 

• Managers → Gain visibility into every interaction. 

• Marketing → See which lead sources convert to deals. 

• Regional Developers → Route leads by territory without added complexity. 

Seamless Deployment, Immediate Impact 

• No-code configuration 

• Calendar & SMS integration 

• Full support from FranConnect’s success team 

No extra logins. No disconnected workflows. No disruption. 

From day one, your team engages faster, converts more efficiently, and closes deals before competitors do. 

The Future of Franchise Sales 

Speed, personalization, and consistency are no longer optional – they define success. 

Candidate Coach positions franchisors to win with a solution that is: 

• Franchise-specific 

• Fully integrated 

• Compliance-ready 

• Powered by Frannie AI 

Every lead gets the right response, at the right time, every time. Sales cycles shorten. Candidate experiences improve. Conversions accelerate 

Learn More

It’s 7:30 AM, and Sarah, the operations director of a 13-location sandwich franchise, is already drowning in spreadsheets. Three franchisees have emailed overnight about royalty calculation discrepancies. Her field operations manager can’t locate last quarter’s compliance reports for an upcoming audit. Meanwhile, the CEO wants updated growth projections by noon. 

As Sarah toggles between 16 open Excel files, a notification pops up — another location opening is delayed again because onboarding paperwork is incomplete. The ROI conversation around franchise management software she’s been putting off with leadership suddenly feels urgent.

It’s a familiar story playing out daily across growing franchise networks. Manual processes that worked for 2-3 locations become serious bottlenecks at 5, 10, 25, 50, or 75 locations.

The question isn’t whether you can continue operating with your current manual systems. The real question is how much invisible growth you’re sacrificing by doing so. Let’s explore the hidden costs of spreadsheet dependency in franchise management and reveal why the journey from fragmented processes to streamlined operations is the key to unlocking your brand’s full potential.

The Hidden Costs of Spreadsheet Management for Growing Franchises

When franchise operations rely on spreadsheets and manual processes, they incur costs that extend far beyond the obvious. The franchise spreadsheet problems that plague growing brands create a cascading effect of inefficiencies that silently erode profitability and stifle expansion.

First, there’s the sheer time investment. Operations directors like Sarah spend significant hours each week just gathering, formatting, and reconciling data from multiple sources, time that could be dedicated to strategic growth initiatives. As your franchise expands beyond 5 locations, this administrative burden grows exponentially, often requiring additional headcount that directly impacts your bottom line.

Then comes the error factor. Spreadsheets are notoriously error-prone, and in franchise management, these mistakes translate to real business consequences. Miscalculated royalties strain franchisee relationships. Overlooked compliance issues create legal vulnerabilities. Inaccurate inventory forecasts lead to stockouts or waste. Each error compounds, creating friction that slows your growth trajectory.

Perhaps most concerning are the opportunity costs, the invisible growth barriers you might not even recognize:

• Delayed decision-making: When data lives in disconnected systems, gathering insights takes days instead of minutes, causing missed opportunities.
• Franchise development bottlenecks: Manual onboarding processes extend opening timelines by weeks or months.
• Relationship damage: Administrative errors and delays frustrate franchisees, damaging the trust essential for system-wide growth.
• Competitive disadvantage: While you’re wrestling with spreadsheets, competitors with streamlined operations are expanding faster.

The real cost isn’t just what you’re spending on inefficient processes. It’s the growth you’re leaving on the table by not investing in purpose-built franchise management solutions.

How Manual Franchise Operations Impact Your Bottom Line

Manual franchise operations directly undermine your financial performance in measurable ways. When managing spreadsheets and disconnected systems, your brand suffers across multiple dimensions. 

The warning signs that manual operations are limiting your growth include:

• Delayed expansion: Slower location openings mean months of lost revenue potential.
• Inconsistent execution: Compliance issues damage customer experience and brand reputation.
• Resource drain: Teams spend time managing paperwork rather than driving growth.
• Scaling inefficiency: Administrative overhead increases proportionally with each new location.

For growth-focused brands, the question is simple: Can you afford systems that fundamentally cap your expansion potential and profitability? The ROI of purpose-built franchise management software becomes compelling when you quantify these hidden costs.

Overcoming Common Franchise Growth Challenges Through Technology

Growing franchises face consistent operational hurdles that directly impede their expansion. Franchise management software ROI becomes immediately apparent when purpose-built technologies directly address these pain points. Rather than applying generic business software to franchise-specific challenges, dedicated solutions provide targeted capabilities for multi-location brands.

Take consistency challenges, for instance. When franchisors rely on manual processes, maintaining brand standards across locations becomes increasingly difficult. Purpose-built franchise software solves this through digital brand standards, automated audits, and real-time compliance monitoring. This ensures customers experience the same quality whether they visit location #5 or location #75.

Manual franchise operations often suffer from communication breakdowns. Field staff struggle to share critical information, franchisees miss important updates, and leadership lacks real-time visibility into location-level performance. 

An integrated platform centralizes communication, creating a single source of truth that eliminates the “I never got that memo” problem. Leadership gains real-time with dashboards that surface issues early —enabling proactive decision making before they escalate into a full-blown crisis.

Technology features that directly address growth barriers include:

• Automated workflows that streamline location openings by eliminating manual handoffs and documentation delays
• Centralized training that ensures consistent onboarding and ongoing skill development across the network
• Performance analytics that uncover best practices from top-performing locations and scale them system-wide
• Compliance management tools that automate audits, standardize reporting, and reduce both risk and administrative overhead
• Royalty management systems that eliminate calculation errors and accelerate collection 

When applied strategically, these technologies transform operational inefficiencies into competitive advantages, enabling brands to focus on growth instead of administrative work.

From Manual to Streamlined Operations

Let’s consider a hypothetical example based on typical results seen across franchise brands. Imagine “FastServe Burgers,” a fictional 47-location quick-service restaurant franchise struggling with inconsistent operations and slow expansion. Their franchise development process relies on spreadsheets, email, and shared drives, resulting in lengthy opening timelines and frustrated franchisees.

After implementing an integrated franchise management platform, this hypothetical franchise could see transformative results — mirroring real-world results FranConnect customers achieve:

• Location opening time decreased by 28%, accelerating revenue generation by getting new units operational much faster
• Compliance with brand standards improved by 32%, directly enhancing customer experience and satisfaction scores
• Field support team productivity significantly increased, allowing the same staff to support more locations without additional headcount
• Real-time performance visibility enables leadership to identify and address underperforming locations before they fail

Perhaps most importantly, average unit economics improve up to 18% compared to pre-implementation baselines, making a strong ROI case that justifies investment in franchise management software within the first year.

Transitioning from manual franchise operations to streamlined, tech-enabled systems creates a foundation that franchises need for sustainable growth, far beyond what manual systems can support.

The Strategic Value of Purpose-Built Franchise Management Solution

Making the leap from spreadsheets to a purpose-built franchise management solution is a strategic move that accelerates growth. The hidden costs of manual operations become real roadblocks to growth as your brand expands beyond a few locations.

The  ROI of a franchise management solution is clear: 

• 28% faster openings
• 32% better compliance
• 18% improved unit economics 

By eliminating spreadsheets and fixing operational inefficiencies now, your brand can seize on growth opportunities while competitors stay stuck in manual processes.

Ready to explore how purpose-built franchise management technology could transform your operations? Request a demo today.