Franchise Operators Face Growing Leadership and Financial Gaps

The report, released by the American Franchise Academy, captures an unfiltered snapshot of the industry based on data gathered between October 2024 and October 2025. Findings reveal that financial visibility remains the primary hurdle for franchisees, identified by nearly half of all survey participants. The instability extends to unit-level leadership, where 36% of managers have occupied their positions for under one year, often navigating their roles without established frameworks for cost control or team development.

Frontline engagement also suffers from a lack of transparency, particularly regarding compensation. Only 59% of employees reported knowing how or when they could qualify for a raise, a metric that remained the lowest-scoring category across all four waves of the study. Aicha Bascaro, founder and CEO of the American Franchise Academy, noted that while franchisors excel at teaching brand standards, they often fail to provide the business management skills necessary for operators to succeed. The academy plans to publish the report annually to track how these operational gaps evolve as the industry matures.