2025 Franchise Success Rates

Starting a business is risky no matter how you pursue it, but there are ways to limit your risk. For decades, entrepreneurs have found that franchising offers them a safer path to business ownership. Having access to the proven business model and robust support a franchisor can provide gives you more opportunities to succeed than owning an independent business. Being mindful of industry trends and franchise success rates can put you in an even better position to thrive.

Let’s take a look at 2025 franchise success rates, as well as what you should know for 2026.

How Successful Are Franchises?

You might have heard before that the franchise success rate can be as high as 95%. That’s not far from the truth. A multi-year study revealed that 92% of franchises remain open after two years in business, and 85% have continued to be successful after five years. For independent businesses, the average has 20% of businesses failing after two years, 45% failing after five years, and 65% failing within 10 years. The U.S. Bureau of Labor Statistics notes that this has remained relatively consistent over the past 30 years.

So, what’s fueling franchise success? Although the specifics will vary by brand, most successful franchisors have built their business around a few key ingredients:

• A turnkey business model that’s been perfected over time. With this work having been done for you, franchisees just have to follow the brand’s systems and procedures. 
  • These business models often prioritize scalability, helping you grow responsibly.
• Thorough market research. In general, franchisors won’t make a territory available unless they know that community is likely to support the service that they’re offering. 
• Minimum financial requirements. Even low-cost, low-overhead franchises set standards that franchisees must meet in order to invest. This isn’t meant to be a barrier to entry; it’s intended to make sure you have the resources needed to get through the first years in business.

Once your franchisor has determined that you’re the right person to bring their brand to your community, they’ll provide you with the resources you need to succeed. This can include continuing education, business coaching, marketing support, and networking opportunities within the franchise system.

Franchise Succes Statistics You Should Know

• 5% of all businesses in the United States are franchises
• There are over 712,000 franchise owners
• Franchise output is projected to exceed $936.4 billion in 2025, a 4.4% increase from 2024
• Franchising is outpacing the U.S. economy over the last five years, with a growth rate of 7.3%
• The Southeast and Southwest are the fastest growing franchise markets, with growth rates of 6.2% and 8.5% respectively

Looking Ahead to 2026

As the labor market cools and economic growth slows, recession-resistant businesses are smarter investments than ever. These franchises offer goods and services consumers need no matter how the economy is doing, at value prices that can fit most budgets. These businesses can often be found in the home services industry, but may also include:

• Automotive repair
• Senior care services
• Moving companies
• Cleaning services and maintenance
• Childcare services
• Medical and health services
• Pest control

Home services franchises stand out as recession-resilient franchise opportunities. By offering “must have” services rather than “want to have” services, a home services franchise is in a better position to weather economic fluctuations. In fact, the home services industry remains on a growth trajectory, with its current market value of $211.71 billion expected to have an astounding compound annual growth rate (CAGR) of 19.59% from 2026 to 2032.

With many people opting out of the real estate market and choosing to stay in their current home, a home improvement franchise like Budget Blinds is a particularly appealing investment. Home improvement makes up a significant portion of the home services industry’s value and is projected to have a stable 4% CAGR through 2034.

Budget Blinds: Your Franchise Success Opportunity

With a proven track record of over 30 years of success, Budget Blinds is the home services franchise opportunity you’ve been looking for. We’re the top provider of custom window coverings in North America, with nearly 1,500 locations open across the United States and Canada. Our franchise ranks highly on Entrepreneur’s Franchise 500 each year, coming in at #26 overall, #1 in window covering franchises, and #2 in top franchises under $150,000 for 2025.

With the global window covering industry projected to grow at a CAGR of 8.5% and reach a market value of $60.16 billion by the end of 2030, it couldn’t be a better time to invest in our award-winning franchise. Our parent company, Home Franchise Concepts, is a leader in home services franchising. With that strong backing, Budget Blinds provides the support and resources you need to be successful. Our industry expertise and product lines, from name brands to private labels that can’t be found anywhere else, are second-to-none. We give you the advantages you need to thrive in this market.

As we move into 2026, create the future you’ve been dreaming of with a Budget Blinds franchise. Inquire now, and one of our franchise advisors will be in touch with more information.