2025 Franchise Trends: Why More Americans Are Buying Franchise Businesses Instead of Starting from Scratch

Magnus Nilsson
May 19
4 min read

In 2025, one thing is clear: more Americans are skipping startups and diving straight into franchise ownership. With rising uncertainty in traditional employment and a growing desire for control, time freedom, and wealth building, franchising has become the preferred business model for career changers, corporate refugees, and savvy investors alike. At The Franchise Magnet, we help you navigate this changing landscape by connecting you with franchise business opportunities built for the new economy.

Top 6 Franchise Trends Driving Ownership in 2025

1. The "Anti-Startup" Movement Is Real

Startups still grab headlines—but what most people don’t see is the 45% failure rate within five years. In contrast, franchise businesses offer pre-built systems, stronger support, and real-world proof of concept. They also allow for tangible, direct control over your investments - something you may wish you had when your stock account took a tumble this past spring.

In 2025, thousands of would-be founders are skipping the guesswork and buying into proven franchise models instead. Investors and aspiring entrepreneurs are asking a new question: “Why build it from scratch when I can buy the playbook?” Imagine if the inventors who followed Thomas Edison thought they should just re-invent the wheel!

Not only will you benefit from being a franchisee while you are a franchisee, but also after; should you choose to exit, or start another businesses afterwards, those real-world, sharpened business skills will follow you for the rest of your life. For example, if you are a general contractor that isn't the best a marketing, let's say, but you find a window replacement franchise that has that piece locked in, not only can you grow your new franchise investment, but also any endeavors you decide to pursue as a GC (or anything for that matter). Not a bad deal!

2. Semi-Absentee Models Are Booming

Today’s entrepreneurs want ownership without burnout. That’s why semi-absentee franchise models—where owners manage the business part-time while hiring a team to run daily operations—are exploding in popularity. From fitness studios to med spas and home services, 2025’s hottest franchises are designed for scale and lifestyle freedom. Multi-unit - Multi brand franchising is also gaining traction, allowing owners to expand across territories and build empires, not just income.

3. AI, Automation, & Tech Are Reshaping Operations

Franchises that embrace automation, AI-enabled CRM systems, virtual staffing, and low-overhead tech tools are leading the pack in 2025. Many of today’s top-performing concepts offer:

Automated customer onboarding
Online scheduling and recurring billing
Remote performance dashboards

The modern franchisee isn’t running spreadsheets—they’re running systems. And the systems are running the business.

4. Healthcare and Wellness Franchises Are the Fastest-Growing Sector

Driven by aging populations, rising chronic disease, and a post-pandemic wellness boom, healthcare and wellness franchises are leading growth in 2025. What’s interesting? You don’t need to be a doctor to own one. Regulations in most states allow non-clinical owners to hire licensed professionals and run cash-based healthcare franchises like:

IV drip therapy
Hormone optimization
Stretch studios and recovery centers
Physical therapy and diagnostics
Fat loss clinics

With higher margins, stickier employees, and recession-resistant demand, medical franchise opportunities are dominating investor interest this year.

5. Service-Based, Recession-Resilient Brands Are Still in Demand

In 2025, investors are leaning into essential services—think waste removal, HVAC, home cleaning, pet care, and senior services. Why? These businesses are:

Low overhead
Labor-light
Always in demand

When the economy wobbles, people still need their homes fixed, their dogs groomed, and their parents cared for. That’s why blue-collar franchises with white-collar returns are being snapped up fast.

6. More Veterans & Career Changers Are Buying Franchises

From Navy officers to Fortune 500 execs, more people are turning their career experience into business ownership—and franchising is the easiest on-ramp. Franchise establishments are projected to increase by more than 20,000 units, or 2.5%, to 851,000 total units in 2025. Not only this, but Franchising is expected to add approximately 210,000 jobs, growing at a rate of 2.4%, bringing franchising employment to more than 9 million jobs. Franchise GDP is projected to increase by 5% to $578 billion, outpacing the overall U.S. economy's projected growth of 1.9% in 2025. In 2025, franchisors are offering more incentives than ever, including:

Veteran discounts
First responder programs
SBA-approved financing
Training for first-time business owners

No industry background? No problem. Franchises are built to train.

How to Pick the Right Brand in a Fast-Changing Market

At The Franchise Magnet, we take pride in our efficient service of brand selection and discovery—we walk with you through a proven discovery process based on 4 of the most important franchise selection factors:

1. Economic Trends

We help you match with recession-resistant, scalable brands built to weather inflation and market cycles. Our benchmark is $500k AUV at a minimum.

2. Lifestyle Design

Want something passive? Flexible? Scalable? We match your goals to franchise models that fit your ideal schedule and risk profile.

3. Future-Proof Systems

We prioritize brands using automation, AI, subscription revenue, and tech-enabled delivery to give you a competitive edge.

4. Personal Values & Strengths

Not every great franchise is great for you. We look at your background, passions, and resources to help you navigate with clarity.

Final Take: If You’re Not Exploring Franchise Ownership in 2025, You’re Already Behind

Franchise ownership is no longer just a fallback for corporate dropouts—it’s becoming the preferred path for serious entrepreneurs, hard-working hustlers, and investors who want to build wealth on a stable foundation.

If you're wondering: