April 22026 Methodology
BoeFly announced its most recent Franchise Growth Confidence Index – the quarterly BoeFly survey measuring how certain economic conditions and external factors affect franchisors’ growth. Between March 13 and March 27, 2026, we surveyed franchisor executives to determine if there were any significant changes in franchisor sentiment regarding domestic franchise growth.
Participants rated their confidence on a scale of 1 (not confident) to 7 (completely confident) about whether they expect their brand to achieve growth targets this year. Additionally, respondents answered several questions designed to assess the impact of specific external conditions on their confidence level.
Results
This quarter, 60% of franchisors expressed some level of confidence in meeting their growth targets– up from 42.86% in Q4 2025 and 56% in Q3 2025, marking the highest confidence level since Q1 2025. Additional insights include:
- Confidence levels remained divided, with respondents spread across the full 1–7 confidence scale. Low‑confidence responses totaled 38%, while higher confidence accounted for 44%, reflecting a mixed but slightly positive tilt compared to earlier surveys.
- Interest rates continue to weigh heavily on growth, with 61% of franchisors agreeing or strongly agreeing that current rates negatively impact their brand’s plans. Only 17% of respondents disagreed, reinforcing that high rates remain a dominant concern.
- Inflation remains a significant challenge, with 55% of respondents agreeing or strongly agreeing that inflation is hurting development goals. Although 17% disagreed, the majority still report measurable pressure from rising costs.
- Recent SBA rule changes – including the 100% U.S.‑citizen ownership requirement – have had mixed impact, with 56% agreeing they negatively affect development, while 11% reported neutral views, underscoring uncertainty about their long‑term effects.
- AI and automation are emerging as notable influencers, with 50% of respondents agreeing that advancements are significantly shaping operations, labor strategy, and franchisee support. Only 12% disagreed, suggesting broad industry adaptation.
- Geopolitical instability, specifically the conflict in the Middle East, shows a more divided impact, with 34% of respondents agreeing it is affecting development, 28% neutral, and 39% disagreeing, indicating uneven exposure across brands.
