Report: Franchisees Boost Their Financial Strength in '25

BoeFly, a financial technology company specializing in franchise verification and financing, has released its 2025 Franchise Capital Trends Report. Based on the financial verification of thousands of applicants across more than 300 franchise brands, the data reveals a significant upward shift in the financial strength of the 2025 franchise market.

In 2025, BoeFly verified more than $18 billion in candidate net worth across its client network. When analyzing the total capital per deal—capturing the combined financial strength of all partners behind a single opening—the data confirms that the average franchise agreement is now backed by significantly deeper pockets than one year ago.

The report identifies a structural shift in the market's capacity to transact, driven by three converging factors:

1. Inflationary entry costs. Rising build-out costs have naturally filtered for stronger operators who can absorb higher initial investments.
2. Market performance. With major indices like the S&P 500 reaching new highs, candidate portfolios—specifically verified marketable securities—have appreciated significantly, boosting accessible liquidity.
3. Monetary policy. Years of M2 (money supply) expansion continue to support elevated individual balance sheets.

Key findings from the 2025 report are:

• The Era of the "capital group." The most dramatic liquidity shifts occurred in retail (+33%) and QSR (+32%). With median QSR deal liquidity approaching $400k, the data suggests that the "single operator with a HELOC" is increasingly being replaced by well-capitalized partnerships and multi-unit investors.
• Home services join the "800 club." For the first time, the median verified credit score for home services applicants surpassed 800 (median: 804). This sector is attracting highly disciplined operators with pristine personal balance sheets.
• A flight to quality. Across all sectors, the applicant pool has risen. This consolidation of capital signals a healthier, more resilient franchise system heading into 2026, as stronger operators are better positioned to weather economic fluctuations.

Executive Commentary

"In today's economic environment, franchisors can no longer rely on guesswork or unverified 'aspirational' financial statements," said Mike Rozman, CEO of BoeFly. "Our 2025 data confirms that while the cost of entry has risen, so has the caliber of the deal. Candidates are leveraging strong equity portfolios and pooling capital in partnerships to meet these new requirements. Brands that rely on unverified data are flying blind while those using verified benchmarks are strategically adapting to win these high-quality operator groups."