Franchises remain a powerful economic driver in the United States, contributing more than $936 billion in output in 2025. Among the top states for franchise growth? Arizona.
Yet new research from LT (formerly LaneTerralever) reveals that growth may be at risk due to a widening disconnect between what consumers expect and where franchisors are investing.
Today’s consumers want the best of both worlds: the trust and local credibility of independent businesses combined with the reliability and scale of national brands. They also expect seamless digital experiences — from loyalty apps and real-time communication to consistent service across locations. In fact, 90% of consumers say rewards programs drive brand loyalty and half use social media platforms to discover new brands.
Despite these clear signals, many franchisors continue to rely on the same marketing methods they’ve used for years. Only 39% plan to adopt AI tools in the next two years, even as AI and social media are fundamentally reshaping how people discover and evaluate businesses. This gap leaves many brands vulnerable to losing relevance with fast-changing consumer behaviors.
The report also identifies three consumer personas shaping franchise decision-making: the Consistency Crusader, who values reliability and trust; the Digital Decision-Maker, who expects a tech-first experience; and the Value Hunter, who prioritizes cost and convenience. These groups cut across age and income, underscoring that behavior, not demographics, now drives purchasing decisions.
For franchisors, the message is clear: Traditional brand-building alone is no longer enough. To compete in 2025 and beyond, franchise systems must align investments with consumer priorities, focusing on personalization, loyalty and digital convenience.
For more insights, the full report, “The Gaps That May Be Killing Your Franchise: Changing Consumer Expectations & Where to Invest,”
Nick Dan-Bergman is CMO of LT.
