Comparing Recruitment Budgets from 2025 to 2026

Franchise Update Media recently released its 2026 Annual Franchise Development Report.

We have been researching franchise lead generation and franchise recruitment processes for more than a decade. An annual in-depth online survey queries franchise development professionals about a number of issues related to their lead generation and recruitment strategies. The results are presented each year in the Annual Franchise Development Report (AFDR). 

The AFDR report is a valuable resource that can provide crucial insights into franchise development, lead generation, and recruitment best practices. It’s the kind of information that can help brands assess what they are doing right and what needs improvement.

The project seeks to identify what’s new and innovative in franchise lead generation, recognize the methods and approaches yielding the best results, and gain insights into franchisors’ perspectives on current and future business performance.

Survey participants were franchisors who completed an in-depth questionnaire online. Responses were aggregated and analyzed to produce a detailed view into the recruitment and development practices, budgets, spending allocations, and strategies of a wide cross-section of franchisors. The data, along with accompanying commentary and analysis, provided the basis for the 2026 AFDR.

The in-depth report draws on insights from dozens of organizations that are actively expanding their franchise systems. Carefully researched and data-rich, it highlights the latest trends and sheds light on how brands are generating leads and closing franchise sales today. The AFDR reflects input from companies representing tens of thousands of franchise units across dozens of industry categories.

Franchise Update Media creates this report annually and shares its findings with franchise development teams to give them an edge in their lead generation and recruitment efforts.

How do franchise recruitment budgets compare from 2025 to 2026?

With nearly all survey respondents setting their franchise sales goals and development budgets for 2026 in Q4 of 2025, we decided to examine how their recruitment budgets compared for both years. When looking at all franchises surveyed, 55 percent said their recruitment budget would be higher in 2026. Thirty-five percent said it would be the same as it was in 2025, while only 10 percent said it would be lower.

As we have done previously, we also broke down the responses into specific categories, starting with the general business of the franchise. Food franchises had the highest number of those planning on increasing their budgets at 67 percent. Very few franchises, regardless of business category, indicated they would decrease their budgets. Among retail (non-food) franchises, 67 percent reported their budgets would stay the same, while 33 percent said it would increase.

The same question about budgets was also analyzed by franchise investment level. Nearly every group planned to either increase its budget for 2026 or keep it the same. Eighty percent of franchises with an investment level of more than $1 million said they would increase their recruitment budget this year. That was followed by 67 percent of franchises with investment levels of $250,001 to $500,000 also planning to increase their budget. Franchises with investments between $50,0001 and $100,000 had an even distribution of those planning to increase, decrease, or remain the same.

The question of recruitment budgets was also taken with the context of franchise size. The large majority of respondents again indicated they would either have a higher or similar budget in 2026 as they did in 2025. Every franchise between 501 and 1,000 units planned on keeping their budgets the same this year. The biggest difference came in franchises with 1,001 to 2,500 units, with an even split between those having higher or lower budgets in 2026.

The final category looked at whether franchises used brokers as part of their recruitment process. Among those who use brokers, 42 percent planned to have a higher budget in 2026, eight percent have a lower budget, and 50 percent will remain the same. For those who do not use brokers, it was an even split of those planning either a higher or lower budget in 2026.

For more information about the 2026 AFDR and how you can purchase the report, please scan the QR code below or click https://afdr/franchiseupdate.com.