Being in the franchising industry, you already know how fulfilling and rewarding running a franchise can be. And, whereas a few years ago, you’d regularly reach people with one foot in franchising asking about your opportunity, things currently seem slower and uncertain.
With reports of some industries seemingly flourishing – which is brilliant to hear – the reality from both franchisors and in conversation with other agencies, shows a slowdown in recruitment.
Maybe you’ve had the question, “Why are we not recruiting” thrown at you, or you’ve been mulling over it yourself – especially as we’re in the final quarter of the year.
If so, you’re not alone.
What’s going on?
Let’s step back for a moment and look at the wider picture; because franchising doesn’t exist in a vacuum. We’re part of the national UK-business landscape, and what’s happening across the board has an impact on us too.
Concerns impacting businesses
According to the Government’s Office of National Statistics, in their Business Insights and Impact on the UK Economy report[1], released at the beginning of September:
- 21% are concerned about international conflict causing shipping disruptions and impacting supply chains
- 63% are concerned about fuel price increases
- 46% anticipate higher transportation costs
- 59% expressed concern about rising energy prices
- 38% reported staffing costs have increases over the last three months
We’ve also got, according to Bank of England’s Agents’ Summary of Business Conditions report, “significant pockets of weakness including subdued growth in consumer spending[2]” which are impacting businesses across many sectors – of people aren’t spending because of the cost of living (for example) then this will affect how well businesses do.
Another key issue comes from the perceived level of support business owners receive, with a survey of 237 owner-managed businesses (a great description for many franchises), by the Association of Practising Accountants finding:
- 97% of respondents rated Government support as poor / very poor (up 7% from 2025).[3]
So, it’s unsurprising to hear reports of businesses pausing, reduced trading, or which had closed (3%, 10%, 2% respectively[4]). But when you take all this into consideration, you begin to understand the current hesitancy around investing in a business – including in a franchise.
However, as you’ll hear across both business and franchising, “the picture varies by sector.”[5] All these business issues have left franchise prospects feeling uncertain about key issues like, “Will I find customers?” and “Will my business make money?”
What about business investors?
When it comes to investing – either in any business venture, or specifically in your franchise – the Bank of England has highlighted that businessowners remain cautiously mindful:
“Investment intentions remain uneven, but there are tentative signs they are becoming slightly positive for the year ahead, though from a low starting point. The drivers holding back sentiment discussed [previously] persist: uncertainty around demand and cost inflation remain, and borrowing costs are still considered a constraint.”
This is corroborated by a similar survey carried out by the Association of Practicing Accountants which found that 63% of business owners have put their business growth plans on hold, with only 32% (down 5% from 2025) are anticipating investing significantly in their growth[6].
In franchising terms, this could relate to multi-unit or multi-brand franchisees – who are the key people we’ve seen to be heavily investing in franchising, as they expand their portfolios.
So, how is this impacting franchising?
Within the Bank of England’s Agents’ Summary of Business Conditions, they state, “Recruitment difficulties remain below normal”. Something any of us who work in franchise recruitment can attest to, based on the challenges over the last few years.
This can be a challenge for franchise operations within key sectors which traditionally have done well, franchises with Head Offices based outside the UK, and newer franchises trying to kick-start their growth.
The fact is: People who may be watching your franchise brand do not yet feel settled enough to leap into making an investment, and it has nothing to do with how well your recruitment process works or how attractive your business model looks. Uncertainty impacts franchise recruitment.
Do we stop recruitment marketing then?
Our traditional methods of showcasing how well franchisees are doing, how resilient your business model is, and the longevity of your band are key messages which prospects need to be reassured about. So, under no circumstance should you stop your recruitment marketing.
Even though not yet in your pipeline, we can guarantee you’re being watched by those who want to invest in a franchise and are biding their time until it feels right for them, they feel the risk reducing or become more confident in your opportunity. You have no control over when that happens, but you do have some control over how visible you remain, so they don’t forget about your brand when they are ready.
We’ve seen, multiple times over the last 23 years since Coconut was founded, how hastily franchisors cut marketing in a bid to cut costs. But in a fast-paced world, where you need to be seen consistently in a world which quickly moves on and forgets the former things.
By continuing with franchise marketing, you’re showing anyone watching you how genuinely resilient your business model is. You’re showing how supportive your network is. You’re showing how your franchisees are indisputably growing, despite the above challenges rippling across the business landscape. Talk about the above concerns, then show how your network is rising – or how the brand has been able to pivot, if affected by what’s happening (think rising staff and energy costs). You need to reduce the perceived risk and show your franchisees are finding customers as they build their businesses.
Everyone can see what’s happening across the UK, so be authentic in your marketing, rather than trying to portray a rosy picture someone looking at a franchise opportunity won’t believe. Use stats and facts from within your network, because that’s what the savvy, cost-conscious investor wants to know.
Market to sector
Due to increased unemployment, more “ghost listings” on jobsites, and the “estimated number of [employment] vacancies in the UK [having] decreased in the latest quarter”[7] there are people considering their future. We’ve even heard multiple reports of recruiters receiving hundreds of applications for one position. All of this creates a sense of disillusionment and loss of purpose.
So, it’s time to inspire people there’s more open to them than merely filling in application forms and facing multiple rejections. The chances are high that people already in your sector, who know how the industry works, are looking for an opportunity to give them career security or a future owning a business which they thought was beyond them.
These are people it’s worth showcasing your franchise opportunity to. They may need the reassurance of the support you offer – especially if they’re not business minded – and they may need to know they can actually make a go of it and be successful. But this is where using your network in like-for-like marketing will work for you, well.
Market to multi-brand franchisees
These are the people who know franchising, and they understand how systems and processes work within a franchise setting. They’re looking for their next opportunity, so by speaking to them in your marketing strategy, you’ll be appealing to a business owner with strong aspirations and know how to make the franchise model work for them.
Market for resales
Develop your opportunity for resales, as prospects consider it is less risky to buy an ongoing concern, rather than starting from scratch.
Don’t lose heart!
We know from speaking with clients and others across the industry this has been a challenging year or so for franchise recruitment. But don’t lose heart because things will change. I’m sure many of us wish we could see into the future to know when! But for now:
- Keep highlighting the benefits of your franchise opportunity from the perspective of your franchisees
- Talk to others in franchise recruitment to know you’re not alone
- Speak to us at Coconut to see if we can take some of the weight off your shoulders to give you breathing space to focus on something else you can see is working
[1] The report is based on the responses of 9,899 businesses with 10+ employees to the ‘Business Insights and Conditions Survey (BICS)’, at the end of August 2026. It’s available online at: www.ons.gov.uk/businessindustryandtrade/business/businessservices/bulletins/businessinsightsandimpactontheukeconomy/3september2026
[2] www.bankofengland.co.uk/agents-summary/2026/september-2026
[3] The survey was carried out between May and July, among 272 Owner Managed Businesses across 15 sectors and 11 regions of the UK economy. The analysis also builds on comparative data across 5 years of previous research. This year’s report is available online: www.bishopfleming.co.uk/sites/default/files/2026-09/apa_owner_managed_business_survey_september_2026.pdf
[4] www.ons.gov.uk/businessindustryandtrade/business/businessservices/bulletins/businessinsightsandimpactontheukeconomy/3september2026
[5] www.bankofengland.co.uk/agents-summary/2026/september-2026
[6] www.bishopfleming.co.uk/sites/default/files/2026-09/apa_owner_managed_business_survey_september_2026.pdf
[7] www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/september2026