Can you smell the optimism in the franchising world?

Okay, maybe it hasn’t fully hit Australia just yet, but with the RBA cutting interest rates this week, franchisors and franchisees alike can start to see a light at the end of the tunnel. After two years of battling cost-of-living pressures and slower sales, relief could finally be on the way.?

I’ve just spent the past couple of weeks in the US, and let me tell you—their franchise sector is bouncing back fast.

At the Let’s Grow Conference in Dallas, I joined around 250 franchisors—mostly franchise development and marketing teams—for deep dives into AI in franchise growth, local area marketing strategies, and the art of balancing your marketing spend to generate high-quality franchisee leads. And of course, we tackled one of the biggest challenges: how to turn a lead into a thriving franchise efficiently.

From there, I joined a powerhouse delegation of 40 Aussies and Kiwis at the International Franchise Convention in Las Vegas, rubbing shoulders with 4,500 franchise professionals.

Now, love him or loathe him, the franchise community—especially in powerhouse states like Texas and Florida—believes a Republican administration could mean a boom for franchising by reducing government intervention in business.

And the data backs it up.

The IFA’s 2025 Franchising Economic Outlook (prepared by FRANData) revealed that in 2024, franchise outlets in the US grew by 2.4%—beating the projected 1.9% growth rate. Why? Increased consumer demand and the rapid adoption of AI-driven operational efficiencies.

Looking ahead to 2025, FRANData expects Franchise GDP to grow by 5% to a whopping $578 billion, outpacing the broader US economy (forecasted at 1.9%). The hottest sectors leading this charge? Personal services (health, wellness, beauty, pet care, childcare) and retail food/QSR, thanks to return-to-office trends driving higher foot traffic.

What does this mean for Australia? With an election on the horizon, I wouldn’t expect an immediate franchise boom here. But in the medium to long term, we’ll likely follow a similar trajectory to the US.

In the meantime, one thing is crystal clear: AI is no longer optional—it’s essential. Franchisors and franchisees need to embrace automation to drive profitability, streamline operations, and enhance customer and staff experiences. The key? Small wins, quick tests, and learning from both successes and failures.

It’s always invaluable to learn from our US franchise counterparts—their wins, their missteps, and everything in between.

Hope your 2025 is off to a strong start—let’s make it a year of growth!

Cheers,

Bruce McFarlane

CEO, BDC Partners

BDC Partners Podcast: Tell Us Your F'ing Story

44. From Selling Fruits to Becoming a Master Franchise | Claire Wilson, The Alternative Board

In the latest episode of TUYFS, we speak with Claire Wilson, CEO of The Alternative Board. From an early age, selling fruits from her family farm and negotiating with her siblings to work "in the business", Claire has been an entrepreneur at heart. Her career has been one of decisions, from choosing an engineering degree at Oxford over a budding tennis career, to emigrating to New Zealand and later Australia to follow her path.

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