{{title}}
{{byline}}
{{byline}}
Franchise Update Media released its 2026 Annual Franchise Development Report.
We have been researching franchise lead generation and franchise recruitment processes for more than a decade. An annual in-depth online survey queries franchise development professionals about a number of issues related to their lead generation and recruitment strategies. The results are presented each year in the Annual Franchise Development Report (AFDR).
The AFDR report is a valuable resource that can provide crucial insights into franchise development, lead generation, and recruitment best practices. It’s the kind of information that can help brands assess what they are doing right and what needs improvement.
The project seeks to identify what’s new and innovative in franchise lead generation, recognize the methods and approaches yielding the best results, and gain insights into franchisors’ perspectives on current and future business performance.
Survey participants were franchisors who completed an in-depth questionnaire online. Responses were aggregated and analyzed to produce a detailed view into the recruitment and development practices, budgets, spending allocations, and strategies of a wide cross-section of franchisors. The data, along with accompanying commentary and analysis, provided the basis for the 2026 AFDR.
The in-depth report draws on insights from dozens of organizations that are actively expanding their franchise systems. Carefully researched and data-rich, it highlights the latest trends and sheds light on how brands are generating leads and closing franchise sales today. The AFDR reflects input from companies representing tens of thousands of franchise units across dozens of industry categories.
Franchise Update Media creates this report annually and shares its findings with franchise development teams to give them an edge in their lead generation and recruitment efforts.
Earlier this year, Franchise Update looked at how brands are increasingly using artificial intelligence (AI) in their franchise development process. As results from the past two AFDR studies have shown, franchises are now using AI at a much higher rate in sales and development over the past year.
In the latest AFDR, we also asked respondents about how the use of AI has impacted the overall recruiting experience in their system. Among overall general responses, more than half (58 percent) said AI has helped streamline the sales process. Forty percent of the respondents said it enhanced personalization in the sales process, and 35 percent said it increased candidate engagement.
We also asked franchise executives if the use of AI has made a significant difference in getting deals done. Nearly three-quarters of the respondents said it is too soon to determine if AI is making a major impact on finalizing deals. That is likely consistent with how most businesses are just getting started and understanding how to best leverage AI.
The AFDR analyzed the responses across several categories, beginning with the general business sector. Two industries had 100 percent responses to how AI has impacted the recruiting experience. All the retail (non-food) franchises said AI has improved customer satisfaction, and all the retail food respondents said it has streamlined the sales process. Across the board, streamlining the sales process was the most popular response, with four of the five sectors responding with at least 50 percent. It should also be noted that all retail food franchises said that implementing AI has contributed in a significant way to getting deals done.
We also analyzed the results based on franchise investment level. Streamlining the sales process was again the most popular answer, including 100 percent of the responses from brands with investment levels of $50,001 to $100,000. Another result from the use of AI that received a fair amount of responses was that it enhanced personalization in the sales process. Four of the six categories responded with at least 33 percent, led by franchises with investment levels of $500,001 to $1,000,000 (57 percent).
Finally, the AFDR analyzed responses to this question based on franchise unit size. One hundred percent of franchises with 1,001 to 2,500 units said the use of AI has increased candidate engagement. Other popular responses included:
For more information about the 2026 AFDR and how you can purchase the report, please scan the QR code below or click afdr.franchiseupdate.com.