August 2025 Methodology
BoeFly announced its most recent Franchise Growth Confidence Index — BoeFly’s quarterly survey measuring how certain economic conditions and external factors affect franchisors’ growth. Between July 7 and July 24, 2025, we surveyed hundreds of 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, 56% of franchisors expressed some level of confidence in meeting their growth targets — down from 72.7% in Q1 in 2025 but a rebound from 42.9% in Q2. Additional insights include:
- 28% franchisors reported being not very confident or not confident at all, reflecting ongoing concerns amid continued economic uncertainty.
- Interest rates continue to shape development outlooks, though pressure appears to be easing. 64% of respondents agreed that interest rates are negatively impacting growth plans, down from 75.8% in Q1 but up slightly from Q2’s survey.
- 52% of franchisors agreed that inflation is hurting development goals, suggesting sentiment has improved modestly from 60.7% in Q2 and 75.8% in Q1.
- Over half of respondents, 54.2%, indicated that localized minimum wage changes have negatively impacted growth– a new data point introduced this quarter.
- 64% said that recent trade policy changes, including new tariffs, have hindered their ability to achieve 2025 development goals– up from 53.6% in Q2, reflecting growing concern.
- A new question added this quarter found that 32% of franchisors believe current global conflicts are negatively affecting their ability to grow, notably the smallest percentage among all external factors measured.
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