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Franchise Trends 2026: What the IFA Data Shows
The biggest franchise trends in 2026 are steady unit growth, fast growth in child services and home and commercial services, a rebound in full-service restaurants, health care franchising and more multi-unit owners. The IFA projects about 845,000 U.S. franchise units this year.
By Dan Lorenz, founder of Guerrilla Franchising. Last updated: November 2, 2026.
Key takeaways
- The IFA projects about 845,000 franchise units in 2026, up 1.5%, with 12,000+ new franchised businesses.
- Child services and commercial and residential services lead growth at 3.2% year over year.
- Full-service restaurants are projected to outpace quick service for the first time since the pandemic.
- More single-unit owners are buying additional locations.
- A trend is a starting point. The brand’s FDD and its current owners tell you whether it works.
Every year someone asks me what the hottest franchise is. My answer: trends show where demand is moving. They don’t show whether a given brand’s owners make money. This page sticks to the 2026 data, then covers how to use it.
Most of the numbers below come from the International Franchise Association’s 2026 Franchising Economic Outlook, which FRANdata prepared and the IFA published in February 2026. They are projections for the year, not final counts.
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Is franchising still growing in 2026?
Yes, slowly. The IFA projects franchise establishments will grow from 832,521 in 2025 to about 845,000 in 2026, an increase of 1.5%. It expects more than 12,000 new franchised businesses. It also projects nearly 8.9 million franchise jobs and economic output of $921.4 billion, up from $907.3 billion.
That is modest, steady growth after what the IFA called a year of macroeconomic headwinds in 2025. Even in a growing industry, some brands shrink.
Which franchise sectors are growing fastest?
The IFA expects child services and commercial and residential services to be the fastest growing franchise industries in 2026, each at 3.2% year over year. Residential services are home service brands that come to your house, such as cleaning, repair and maintenance.
If you want to see what one of these looks like on paper, the free Dryer Vent Wizard dossier on Zorzee walks through a home service brand’s FDD.
Are restaurants coming back?
For the first time since the pandemic, the IFA projects full-service restaurants will outpace quick service restaurants in output growth. At quick service, it says customers are shifting toward “experiential dining” rather than value alone.
Restaurant build-outs cost a lot. Look hard at Item 7 and Item 19 in the FDD before you get attached to a concept.
What about health and wellness franchises?
The IFA says rising awareness of preventive health care since the pandemic has made it the third-largest franchised industry. Fitness and wellness concepts sit close to this. To see how one looks on paper, Zorzee has free dossiers on Club Pilates and Ultimate Longevity Center.
See our fitness franchise guide for more on that category.
Why are more owners buying multiple units?
The IFA reports that successful single-unit franchisees are increasingly reinvesting in additional locations and becoming multi-unit operators to gain scale. Some brands now prefer multi-unit buyers. The territories you want may already be taken.
Multi-unit plans also stretch your cash. FDD Item 7 usually covers about 3 months of working capital. I tell people to plan for 9 to 12. Books Brothers’ cash flow guide is a good place to map that out.
How is AI changing franchising?
In releasing the 2026 outlook, IFA President and CEO Matt Haller pointed to “investments in AI that will propel brand growth, franchisee unit level economics and wage growth” as one reason franchising is better positioned than independent businesses. Ask any franchisor what tools it gives owners for scheduling, marketing and customer follow-up, and what those tools cost you each month.
Where is franchising growing fastest?
The IFA expects the Southwest (2.5%) and Southeast (1.7%) to stay the top regions for franchise growth. Its top 10 states for 2026 are Texas, Florida, Georgia, Arizona, North Carolina, Colorado, Michigan, Utah, Ohio and Maryland, with Michigan, Ohio and Utah new to the list.
The 2026 franchise trends at a glance
| Trend | What the IFA 2026 outlook says | What to check before you buy |
|---|---|---|
| Steady industry growth | About 845,000 units, up 1.5% | Whether this brand is opening or closing units (FDD Item 20) |
| Child services | Fastest growing, 3.2% year over year | Staffing and licensing rules in your state |
| Commercial and residential services | Fastest growing, 3.2% year over year | Territory size and how leads are generated |
| Full-service restaurants | Projected to outpace quick service | Build-out cost (Item 7) and unit results (Item 19) |
| Preventive health care | Third-largest franchised industry | Licensing, reimbursement and referral sources |
| Multi-unit ownership | More single-unit owners adding locations | Development schedule and working capital for each unit |
| Regional growth | Southwest 2.5%, Southeast 1.7% | Open territories near you |
What I see on calls
What I’m seeing from 2025 into 2027 is that senior care, in-home or anything close to it, is still one of the strongest businesses to get into, thanks to the widely reported silver tsunami. Look for franchisors with a strong track record and good training that gets you up to speed quickly. Wellness is next. Longevity and biohacking franchises will keep growing, and I’d watch Ultimate Longevity Center, which Gary Brecka endorses, as its new units open over the next year and a half. And AI isn’t going to replace fitness. If fitness is your lane, I’d look hard at modern Pilates, where supply and demand work in your favor. If you want help sorting through any of these, let’s talk.
Want a second opinion on a trending brand?
Bring the brand to a free Clarity Call and we will go through it together.
How should you use franchise trends?
Use a trend to pick which categories to look at. Then judge each brand on its own numbers. Read the full FDD, call current and former owners and check the working capital you will need.
About 1 in 3 people I work with buy a franchise. The rest walk away, start their own business or stay in their job. That is a fine outcome too. Our guide on how to choose a franchise covers the steps.
Dan Lorenz, founder of Guerrilla Franchising
Dan has guided 495+ people through the franchise decision. He has been burned by a franchise and has also succeeded with one. He spent 22 years in the Army, 18 of them in Special Forces, and worked as a forensic accountant and strategy consultant at Deloitte. More about Dan.
Frequently asked questions
What franchise sectors are growing fastest in 2026?
The IFA’s 2026 Franchising Economic Outlook, prepared by FRANdata, projects child services and commercial and residential services as the fastest growing industries, at 3.2% year over year. Fast growth in a sector does not mean every brand in it is a good buy.
Is franchising growing in 2026?
The IFA projects about 845,000 franchise establishments in 2026, up 1.5% from 832,521 in 2025, with more than 12,000 new franchised businesses. These are projections, not final counts.
Which states are growing fastest for franchising in 2026?
Per the IFA’s 2026 outlook, the top 10 are Texas, Florida, Georgia, Arizona, North Carolina, Colorado, Michigan, Utah, Ohio and Maryland. The Southwest (2.5%) and Southeast (1.7%) are the fastest growing regions.
Should I buy a franchise because it is in a trending sector?
No. A trend tells you where demand is moving, not whether a specific brand’s owners make money. Read the brand’s FDD, call current and former owners, and plan for 9 to 12 months of working capital before you decide.
What is the hottest new franchise?
No single brand is the answer for everyone. The right franchise depends on your capital, your skills and the territory you want, so start with what you need from the business and then narrow the brands.
Sources
- International Franchise Association, 2026 Franchising Economic Outlook (prepared by FRANdata, February 2026): unit, job, output, sector, state and region projections.
- IFA press release, “IFA Predicts Steady Growth For Franchising In 2026 Economic Outlook” (February 19, 2026): restaurant, health care, multi-unit and AI findings.
- FTC Franchise Rule, 16 CFR Part 436 (eCFR): what a franchisor must disclose before you buy.
Related reading
- What is franchising and how does it work?
- 7 key benefits of franchising
- Franchise opportunities
- How to choose a franchise
- Free franchise consultation: the Clarity Call
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Last updated November 2, 2026. Industry figures are IFA projections for 2026, not final counts. We do not guarantee earnings or financial results. Buying a franchise is a business investment that carries risk, including the possible loss of your investment. Review the full FDD and talk to your own attorney, CPA and financial advisor before you sign anything or pay anything.