If you’ve been thinking about business ownership and franchising, the hottest brands that are popping up everywhere might be at the forefront of your mind. 

It’s tempting to get caught up in the excitement of brands like Crumbl Cookie when a new concept comes to market and becomes all the rage.  And while growth can be a positive sign, it’s critical to avoid getting caught up in the hype or let FOMO cloud your decision-making process as you’re evaluating a brand or industry concept.  Afterall, Pinkberry and other fro-yo brands were popping up in every major shopping center about 15 years ago.  While I’m still able to indulge in my favorite summertime treat, many shops did not survive, and the owners of unsuccessful shops learned some painful lessons.

So, what should you be looking for and thinking about when evaluating brands and concepts for yourself?

The strongest franchise brands aren’t necessarily rapid expansion.  They’re prioritizing quality over quantity.  This doesn’t mean that all fast-growing franchises in 2026 are being irresponsible with growth, it just means there are key signals you’ll want to look for as you vet a franchise to determine if their growth is responsible and set up for long-term franchisee success.  Understanding what to look for can help you make a more informed, lower-risk decision.

What do I Mean by “Quality Over Quantity”? 

In the simplest terms, it means franchisors are being more intentional and choosier about:

• Who they award franchises to
• How many territories they sell
• Where and how quickly they expand

Disciplined brands are prioritizing building healthy, profitable businesses for each franchisee, even if that means slower growth.  

For someone who is considering franchising, it’s a good thing if you find yourself speaking with a franchise that is clearly evaluating you just as much as you’re evaluating them.  This is a strong signal that they care about awarding territories to operators they believe will be successful and in territories they trust are viable.  And if your goals are to build an empire but the available territory in your area won’t support those goals a good franchisor will let you know so you can focus your time and attention elsewhere.

Franchisors Are Becoming Choosier In 2026, Why Now?

Several market forces are pushing franchisors to be more selective and strategic.

Capital Is More Expensive

Financing a business today often requires higher interest rates and more conservative lending standards. With tighter margins, both franchisors and franchisees have less room for error.

The strongest operators and franchisors have realistic expectations, adequate capitalization, and solid management plans. And are far more likely to succeed.

Franchisee Failure Is Costly

A struggling or failing franchise doesn’t just affect the owner. It impacts:

• Franchise brand reputation
• Other franchisees in the market
• Corporate support resources

To avoid these negative impacts, many brands are intentionally slowing down franchise sales to ensure new owners are set up for long-term success rather than short-term expansion.

Buyers Are More Sophisticated

Today’s franchise buyers often:

• Have prior leadership or business experience
• Are evaluating franchises as long-term investments or ways to shift their careers away from corporate 
• Ask deeper questions about unit economics, staffing, and scalability

Franchisors are responding to this by raising the bar to what it means to qualify to be awarded territory.  This isn’t to exclude people, but to ensure the right fit between owner and franchise model.

What Does This Look Like in Practice?

A Longer and More Robust Discovery Process

If you’re evaluating franchise opportunities, you should expect a longer and more robust discovery process with franchisors who are intentional with slow growth. 

Franchisors know candidates who are willing to engage and follow a longer, more through discovery process are much more likely to follow their systems and process once awarded territory. And owners/operators who follow the franchisors systems, processes and playbooks in place are consistently the top performers within each franchise system. 

A more robust discovery process naturally weeds out candidates who are less likely to follow established processes and systems and reduces risk for the franchisor that they’ll award territory to a candidate who may not succeed or will have weak financial performance.  This also allows for deeper discussions and more opportunities for you to get your questions answered.

While it may feel like a pain or a hassle to move through a robust discovery process, it’s actually one mechanism for you to trust the franchisor is keeping your best interests in mind as well as theirs.

Better Territory Discipline

Stronger brands are avoiding market oversaturation, using data to determine realistic territory size and viable markets, and encouraging owners to grow only after the first unit is stable.

This often leads to stronger unit economics, even if expansion takes longer.

Increased Focus on Support and Training

Rather than pouring all resources into sales, many franchisors are investing more in onboarding and ramp-up support, ongoing operational coaching, and systems that help franchisees manage teams, finances, and growth.

For owners, this can translate into better guidance during the most challenging early stages of the business and a natural way for you to build a strong relationship with the corporate teams in place who are meant to be your resource for help and support.

Why Slower Growth Can Be a Good Sign for You

It’s natural to assume that fast growth equals success, especially after years of headlines where sexy tech companies like Uber, AirBnb and DoorDash explored overnight. In franchising, that’s not always the case and you’re not using VC money to fund your business.

A brand that opens fewer locations but ensures those locations are profitable, supported, and sustainable provides a more stable environment for franchisees.  It also allows the brand to pressure test their systems and processes with a smaller set of owners before targeting expansion.  Operating with fewer owners allows a franchisor to be nimble and adjust the support systems and processes they have in place to ensure they’re building a rock-solid foundation.  Once this foundation is in place, they’re set up to focus on growth and expansion without risking their ability to support as new owners come on board.

As a prospective owner, this means you’ll get more thoughtful support and less risk that a franchise you invest with is biting off more than they’re prepared to chew.

What Does This Mean For You As You Evaluate a Franchise?

Throughout the discovery process you’ll want to be asking a lot of questions.  To tease out if a franchisor is practicing responsible growth, consider asking:

• How do you determine if someone is a good fit for this business?
• What does success look like in the first 12–24 months and how do you get involved if someone is off-track?
• How do you protect territories as the brand grows and how do you determine what makes a viable territory?
• How many units does the average owner operate, and what does the path to multi-unit ownership look like?

Thoughtful, honest answers to these questions are often a sign of a quality-focused organization.

In 2026, the emerging themes in franchising isn’t simply to grow fast, it’s prioritizing growing well.  For people considering business ownership, this shift toward quality over quantity can create a more supportive environments and sustainable paths into entrepreneurship.  It also brings a new owner greater opportunity to build a solid foundation with their business and a path to building a future business empire.

Taking the time to evaluate how a franchise grows, not just how quickly, can make a meaningful difference in your long-term experience as an owner.

If you’ve been considering business ownership or franchising and want to learn more feel free to Schedule an Intro Call Here.