BoeFly Data Report:

BoeFly, the leading financial technology company specializing in franchise verification and financing, today announced the release of its 2025 Franchise Capital Trends Report. Based on the financial verification of thousands of applicants across more than 300 franchise brands, the data reveals a significant upward shift in the financial strength of the 2025 franchise market.

In 2025 alone, BoeFly verified over $18 billion in candidate net worth across its client network.

Crucially, when analyzing the Total Capital per Deal—capturing the combined financial strength of all partners behind a single opening—the data confirms that the average franchise agreement is now backed by significantly deeper pockets than just one year ago.

Market trends shift

Macro Context: The Drivers Behind the Shift

The report identifies a structural shift in the market's capacity to transact, driven by three converging factors:

• 1. Inflationary Entry Costs: Rising build-out costs have naturally filtered for stronger operators who can absorb higher initial investments.
• 2. Market Performance: With major indices like the S&P 500 reaching new highs, candidate portfolios—specifically verified Marketable Securities—have appreciated significantly, boosting accessible liquidity.
• 3. Monetary Policy: Years of M2 (money supply) expansion continue to support elevated individual balance sheets.

Sector snapshot

2025 Sector Snapshot: Median Capital per Deal (2024 vs. 2025)

The following data represents the median verified financial profile for approved franchise deals in 2025 compared to 2024.

Note: Figures reflect the combined verified capital of the full ownership group for a single deal

Key findings

Key Findings from the 2025 Report:

• The Era of the "Capital Group": The most dramatic liquidity shifts occurred in Retail (+33%) and QSR (+32%). With median QSR deal liquidity approaching $400k, the data suggests that the "single operator with a HELOC" is increasingly being replaced by well-capitalized partnerships and multi-unit investors.

• Home Services Joins the "800 Club": For the first time, the median verified credit score for Home Services applicants surpassed 800 (Median: 804). This sector is attracting highly disciplined operators with pristine personal balance sheets.

• A Flight to Quality: Across all sectors, the applicant pool has risen. This consolidation of capital signals a healthier, more resilient franchise system heading into 2026, as stronger operators are better positioned to weather economic fluctuations.

"In today's economic environment, franchisors can no longer rely on guesswork or unverified 'aspirational' financial statements," said Mike Rozman, CEO of BoeFly. "Our 2025 data confirms that while the cost of entry has risen, so has the caliber of the deal.

Candidates are leveraging strong equity portfolios and pooling capital in partnerships to meet these new requirements. Brands that rely on unverified data are flying blind, while those using verified benchmarks are strategically adapting to win these high-quality operator groups."

Introducing Custom Benchmarking

In response to these findings, BoeFly is also announcing the launch of Custom Benchmarking for its client partners. This new capability allows franchisors to move beyond generic industry averages and compare their applicant portfolios against verified data from custom peer groups.

"Knowing the industry average is helpful, but knowing exactly how your applicant pool stacks up against your direct competitive set is a game-changer," added Rozman.

BoeFly emphasizes that client confidentiality is paramount in this new oƯering. The benchmarking model aggregates data based on categories defined by the client (e.g., "Top 20 QSRs" or "Emerging Sandwich Brands"). Franchisors see how they compare to the anonymous average of that peer group, ensuring that specific brand data is never exposed.

Founded in 2009, BoeFly is a leading financial technology company that continues to deliver innovative online tools and solutions to accelerate business forward. Led by a team of franchising and finance industry experts, BoeFly specializes in identifying gaps in the marketplace and creating customized solutions to meet changing needs. The company has developed a proprietary Franchise Sales and Finance System to meet the core needs of franchise brands and small businesses throughout the entire process, from vetting franchise candidates to matching them with lenders who can move fast.

Through its data-driven system and robust online marketplace, BoeFly is able to connect borrowers to a wide array of banks and specialty finance companies, which has accommodated over $7 billion in transactions and supported more than 600 unique franchise brands. BoeFly’s pioneering technology and products have allowed the company to oƯer flexible options and serve businesses at all stages of development, from established brands with thousands of locations to emerging franchisors and startups. For more information, visit www.boefly.com.

BoeFly drives growth by delivering financially qualified candidates increasing lead-to-franchisee conversion, and helping franchisees secure financing. BoeFly has supported more than 600 unique brands since 2014.