AFA releases 2026 State of the Franchise Operator Report

The American Franchise Academy (AFA) today released its 2026 State of the Franchise Operator Report, which they say is the most comprehensive ground-level look at the franchise operator experience ever assembled in a single publication.

To create the report, the AFA interviewed 879 franchise professionals across brands and markets nationwide between October 2024 and October 2025. Around 48% of participants were district managers, 28% were single-unit managers, 18% were ground-level team members, and 6% were multi-unit franchisees.

“The franchisor teaches operators how to run the brand. We teach franchisees and their leaders how to run the business,” said Aicha Bascaro, Founder & CEO of the American Franchise Academy. “This report aims to show these professionals they are not alone, to empower them, and to provide the industry with the data needed to start closing the gap.”

The AFA’s research found that financial visibility is the #1 challenge for franchisees, having been cited as such by nearly half of all respondents. Management inexperience is another significant challenge in the space, as 57% of district managers reported having less than two years of experience in their roles and 36% of unit managers have been in their role for less than one year. For frontline employees at franchise businesses, compensation emerged as a major concern, with over 40% of the group saying they don’t know how or when they might get a raise.

The 2026 State of the Franchise Operator Report includes deep dives into the top five challenges as identified by stakeholders, bright spots and areas of concern across the franchise industry, and qualitative perspectives and insights on the state of the space, direct from respondents. You can download the complete report here:

Since July of 2016, The American Franchise Academy created has provided an independent business academy for franchisees and their teams. Their offerings include COMMAND, a 12-month mastermind program for franchisees; LEAD, a ten-week intensive course for district managers; and the MANAGE program for unit managers, which can be taken for a four-week basic diploma or a five-week advanced certification. The brand also manages The Steel Forge, a professional development and peer learning community for unit managers, multi-unit leaders, and franchise owners.

The AFA created this report to celebrate its 10th anniversary and is committed to publishing annual reports moving forward to track the evolution of the space over time.