Fastest Growing Franchise Industries in 2026

By Dan Lorenz | Updated October 29, 2026

Which franchise sectors are projected to grow in 2026?

Each year the International Franchise Association (IFA) and FRANdata publish a forecast by sector. These are 2026 projections, not final counts. The table lists each sector’s projected growth rate from the 2026 Franchising Economic Outlook.

*The senior home care row comes from the U.S. Bureau of Labor Statistics, not the IFA, and measures a different thing (jobs over 10 years, not franchise units in 2026).

Are fast casual franchises still growing?

Slowly. The IFA projects quick service restaurants at about 281,000 franchise units in 2026, with units and output each up about 0.5% (QSR Magazine). For the first time since the pandemic, the IFA expects full-service restaurants to outpace quick service in output growth (IFA).

The IFA counts fast casual inside quick service, so the 0.5% is an average across burger, pizza, sandwich and chicken brands. Fast casual concepts like Jersey Mike’s and Chicken Salad Chick sit in that bucket, and brands inside one category can perform very differently. If you are weighing sandwich brands, compare Jersey Mike’s vs. Subway side by side, then check each brand’s FDD. Our breakdown of what a food franchise costs covers the budget side.

That does not rule out a restaurant. It does mean the sector alone will not carry a location. Your numbers will come down to your territory, your rent and your labor.

Are home service franchises still a good bet when remodeling is flat?

The IFA puts commercial and residential services among the fastest-growing sectors, at 3.2%. It points to repairs and maintenance, lawn care and pest control, plus an aging housing stock (IFA and FRANdata).

Remodeling tells a different story. Harvard’s Joint Center for Housing Studies expects homeowner improvement and repair spending to stay relatively flat, around $525 billion, through the third quarter of 2027 (JCHS). The useful split is between work people need, like repairs and pest control, and work they choose, like a kitchen remodel. Ask which side a brand sits on.

Why are cleaning, moving, laundry and pet services growing?

The IFA expects personal services to reach more than 24,000 franchise units in 2026. It names home cleaning, moving and storage, laundry and pet services, especially mobile pet services. It credits busy dual-income households paying to get chores done (IFA and FRANdata).

Pet demand has a solid base. The American Pet Products Association reports 95 million US households owned at least one pet in 2025 (APPA).

What about senior home care franchises?

The IFA does not break home care out as its own sector. It says health and wellness, projected at 2.1% for 2026, is led by home health care and driven by aging demographics (IFA and FRANdata).

For a closer read on demand, we used government job data instead. The U.S. Bureau of Labor Statistics projects jobs for home health and personal care aides to grow 18% from 2025 to 2035, against 3% for all occupations. It expects about 760,500 openings each year. It ties the demand to a rising number of older people and a shift in care from nursing homes to the home (BLS Occupational Outlook Handbook).

That figure counts caregiver jobs, not franchise locations. It also points at the main operating challenge. A home care franchise depends on hiring and keeping caregivers, so ask any brand how its owners recruit.

What about fitness, tech and education franchises?

The IFA groups these differently. Health and wellness is projected at 2.1%, led by home health care, and the IFA says it is now the third-largest franchised industry. Business services, including IT, is projected at 1.6%. Child services is projected at 3.2% (IFA, IFA and FRANdata). Check any single brand’s numbers in its FDD.

What I see on calls

My picks for the fastest-growing franchise types

If you ask me where I see the most growth right now, I give three answers.

Fast casual. People still eat out. They want food that is quick and a step up from a drive-thru, and fast casual sits right there.

Senior care. The demand is already here and it keeps building as people age. The hard part is staffing, so read up on what a senior care franchise costs and how a brand keeps caregivers.

Asset-heavy franchises. The One Big Beautiful Bill changed the math on equipment, vehicles and build-outs. The depreciation and write-offs can make a heavier investment easier to carry in the first year. Here is how it works.

How does the One Big Beautiful Bill help asset-heavy franchise buyers?

The One Big Beautiful Bill Act, Public Law 119-21, made two depreciation changes that matter to franchise buyers who spend heavily on equipment (IRS, Instructions for Form 4562).

• 100% bonus depreciation is back, and permanent. Qualified property acquired after January 19, 2025 can be deducted in full in its first year, instead of over several years (IRS). For the first tax year ending after January 19, 2025, you can elect 40% instead (IRS).
• The Section 179 limit went up. For tax years beginning after December 31, 2024, you can expense up to $2,500,000 of Section 179 property, up from $1,000,000. That limit shrinks dollar for dollar once you place more than $4,000,000 of property in service in a year (IRS).
• The 2026 numbers are indexed. For tax years beginning in 2026, the Section 179 limit is $2,560,000 and the phase-out starts at $4,090,000 (IRS, Rev. Proc. 2025-32).

Here is why that matters. Trucks, tools, kitchen equipment and fit-outs make up a big share of some franchise budgets (see start-up equipment costs for construction franchises). If those assets qualify, you may be able to deduct much of their cost in the year you place them in service. That can lower your tax bill when cash is tightest. It does not lower what you spend, and Section 179 is limited by your business income (IRS Publication 946).

This is not tax advice. Whether an asset qualifies, and which election is right, depends on your situation. Talk to a CPA before you buy.

Should you buy a franchise, start your own business, or stay in your job?

Picking a sector comes after a bigger question. Be clear which of three outcomes you are testing for.

Route 1: Buy a franchise

Fits people who want a proven system and will follow it. The trade-off is fees and rules you do not control.

Route 2: Start your own business

Fits people with a specific idea who want full control. The trade-off is building the playbook yourself.

Route 3: Stay W-2, for now

Fits people whose savings, timing or family plans are not ready. Waiting a year costs less than a bad signing.

Each route has its own checklist. The free Franchise Decision Diagnostic walks you through them, or we can work through it together on a call.

“We’re so grateful for your assistance and patience! We never would’ve found the brands that you introduced us to without you!”

Frequently asked questions

Which franchise industries are growing fastest in 2026?

The IFA projects child services and commercial and residential services to grow fastest, at 3.2%. These are projections, not final counts.

Are fast casual and fast food franchises still growing?

Slowly. The IFA counts fast casual inside quick service, and projects quick service restaurant units and output to grow about 0.5% in 2026, behind full-service restaurants.

Is home improvement spending still growing?

Harvard’s Joint Center for Housing Studies expects remodeling spending to stay roughly flat through late 2027. Needs-based repair and maintenance services are projected to grow faster than discretionary remodeling.

Is the pet industry a good franchise sector?

Demand is broad. APPA reports 95 million US households owned a pet in 2025, and the IFA names pet services among growing personal services. Judge any pet brand on its own FDD.

Does the One Big Beautiful Bill help franchise buyers?

It can help asset-heavy buyers. It restored permanent 100% bonus depreciation for qualified property acquired after January 19, 2025, and raised the Section 179 limit to $2,500,000 for 2025 and $2,560,000 for 2026. Talk to a CPA about your situation.

Does a fast-growing sector mean a franchise will succeed?

No. Sector growth is an average. Your territory, your budget and the brand’s FDD matter more.

Sources

• IFA and FRANdata, 2026 Franchising Economic Outlook (PDF): sector growth projections.
• IFA press release, February 2026: fastest-growing sectors and the full-service vs quick service shift.
• IFA Franchising Economic Outlook: about 845,000 US franchise units projected for 2026, up 1.5%.
• QSR Magazine: quick service at about 281,000 units and 0.5% growth.
• Harvard Joint Center for Housing Studies, LIRA, October 2026: remodeling spending roughly flat near $525 billion.
• U.S. Bureau of Labor Statistics, Occupational Outlook Handbook: home health and personal care aide jobs projected to grow 18% from 2025 to 2035, about 760,500 openings a year.
• IRS, Working Families Tax Cuts: businesses: 100% bonus depreciation and the $2,500,000 Section 179 limit under P.L. 119-21.
• IRS, Rev. Proc. 2025-32: 2026 Section 179 limit of $2,560,000 and $4,090,000 phase-out.
• IRS, Instructions for Form 4562 (2025) and Publication 946: how the deductions apply.
• American Pet Products Association: 95 million US households owned a pet in 2025.
• About Dan Lorenz: the 495+ people guided and the first and second franchise stories.

Related reading

• How to choose a franchise
• Franchise Fit Finder category quiz
• Free franchise consultation: the Clarity Call
• Franchise vs. starting your own business

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.