From Demand to Development: Shifting Consumer Priorities are Reshaping Franchising

Consumer trends don’t change overnight, and franchising tends to be somewhat behind new trends generally. Franchising is a model used to scale a business, not an experiment, which means new consumer behaviors tend to appear only after they’ve been tested and validated in the market. This causes a lag between where a new business responds to a new demand and the time it takes to build and develop a franchise program for that new concept. 

Since Covid-19, there has been an unprecedented number of new franchise brands beginning to sell and operate. Many concepts reflect changing consumer values: 

New health, wellness, and preventive care offerings from niche nutrition services to mental health support 

Sustainable retail and eco-conscious models responding to rising environmental awareness 

Pet wellness and specialty services driven by heavy consumer spending on pets 

Content and experience-driven formats, particularly in children’s education and specialized services 

From 2023 through 2025, FRANdata has identified 1,296 new brands that have begun franchising. While food, particularly QSR, continues to account for a meaningful share of growth, the most telling signal is the volume and diversity of non-food concepts entering the franchise space. 

Of these new brands, 61% (786 concepts) operate outside of food, many aligning closely with these consumer priorities. 

Health and Wellness 

We estimate that the health and fitness industry has been adding locations by 2–3% over the past five years with approximately 95,000 franchised businesses operating at the end of 2025. Health and fitness also represents the largest single category among newly franchised non-food brands, accounting for 156 concepts since 2023. 

What is notable is not just the size of the category, but how broadly wellness is now being defined. The new concepts offer multiple wellness services in a single location, blending movement, recovery, mindfulness, and technology-enabled treatments. 

This mirrors broader consumer data. Global consumer research consistently shows that wellness spending continues to grow faster than overall consumer spending with a majority of consumers reporting that they actively invest in physical health, mental well-being, and preventive care as part of their regular routines. Surveys also show growing willingness to pay for services that combine physical activity, recovery, stress reduction, and longevity-focused benefits. 

Pet Spending

Pet-related products and services account for 5% (43 brands) of newly franchised non-food concepts. 

U.S. pet industry spending continues to reach record levels, driven largely by services rather than basic necessities. Consumer research consistently shows that pet owners prioritize spending on care, enrichment, and wellness even when cutting back in other areas. This emotional attachment makes pet-related services less discretionary than many traditional retail categories. 

New franchise concepts increasingly focus on premium care and experiential services, reflecting expectations that pet owners will continue to invest in quality, not just convenience. 

Experiential Learning

Education-related concepts account for one of the largest numbers of new franchise formations. More than a quarter of newly franchised non-food brands fall into adult, vocational, or non-age-specific education with an additional 8% focused on child-related products and services. 

This aligns with consumer research showing that parents and adults alike are prioritizing experiential learning. Families increasingly value programs that build practical skills, confidence, and social development. Adult learners gravitate toward education that feels immediately applicable and outcome driven. 

Childcare and enrichment models increasingly incorporate outdoor exploration, movement, and experiential learning rather than passive classroom-based formats. Similarly, adult education concepts emphasize flexibility, real-world relevance, and community-based engagement. 

Immersive Fun

New recreational franchise models often blend physical activity with immersive elements such as technology-enabled gaming, interactive environments, or creatively themed play spaces designed to appeal to both children and adults seeking shared experiences. 

Sports and recreation concepts represent 5% of newly franchised non-food brands, a category that reflects broader shifts in discretionary spending. Consumer research shows that spending is increasingly directed toward experiences that are social, interactive, and difficult to replicate digitally. 

What it Means 

Taken together, new franchise concepts and broader consumer research tell a consistent story: Health, wellness, education, pet care, and experience-driven services are not fringe categories; they reflect how consumers are allocating discretionary spending today. 

As we move deeper into 2026, expect more brands to reflect these changing consumer values.

As COO, Paul Wilbur is instrumental in building the research and consulting framework at FRANdata. He plays an integral role in the strategic development of FRANdata’s suite of franchise solutions. Nearly a 20-year veteran at the company, he is the franchise business model expert and plays a key role in fostering strategic advisory relationships with some of FRANdata’s biggest clients. Visit FRANdata.com or email [email protected].