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 September 3 and September 14, 2026, we surveyed franchisor executives to determine whether there were significant changes in franchisor sentiment regarding domestic franchise growth.
Participants rated their confidence on a scale of 1 (not confident) to 7 (completely confident) regarding 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, 56.2% of franchisors expressed confidence in meeting their growth targets — holding steady with 56% in Q2 2026 and remaining well above the 42.86% recorded in Q$ 2025. Additional insights include:
- Confidence levels continued to stabilize, with higher confidence responses (5-7) accounting for 56.2%, neutral responses at 23.3%, and low-confidence responses (1-3) dropping to 20.5%.
- Interest rates show significant relief, with 34.2% of franchisors agreeing or strongly agreeing that current rates negatively impact their brand’s plans– down from 48% in Q2 2026 and 64% in Q3 2025.
- Inflation challenges continue to recede, with 31/9% of respondents agreeing that inflation is hurting development goals– down from 44% in Q2 2026 and 52% in Q3 2025.
- Access to capital conditions improved, with only 26% agreeing that franchisee access to capital negatively impacted development goals, while 41.1% disagreed.
- AI and automation are emerging as key sales drivers, with 25.7% of respondents agreeing that advancements are significantly improving their franchise sales process, while 42.9% remained neutral as brands actively test and integrate tools.
Key Insights
- Interest-Rate Pressure Continues to Ease: Rate concerns fell to an all-time survey low of 34.2%, extending a steady decline from over 71% in late 2025.
- Inflation Drag Recedes Further: Less than one-third of franchisors now view inflation as a primary obstacle to franchise development.
- Franchisee Access to Capital Normalizing: A plural majority (41.1%) of franchisors report that access to capital is not hindering their growth targets.
- AI Adoption Holds Strategic Neutrality: While over a quarter see direct sales process enhancements from AI tools, the largest segment (42.9%) maintains a neutral stance during active trial and integration phases.
Conclusion
The Q3 2026 findings suggest franchisors are entering the final quarter of the year with sustained optimism. Easing concerns around interest rates and inflation, paired with improving franchisee access to capital, indicate steadying market conditions for franchise development. While technology integration remains an evolving focus, overall confidence continues to recover from late-2025 lows, reinforcing a favorable outlook for domestic franchise growth.
