Close Menu
    National News Brief
    Sunday, November 15
    • Home
    • Business
    • Lifestyle
    • Science
    • Technology
    • International
    • Arts & Entertainment
    • Sports
    National News Brief
    Home » How Franchisors Are Battling Rising Prices in 2025

    How Franchisors Are Battling Rising Prices in 2025

    Team_NationalNewsBriefBy Team_NationalNewsBriefSeptember 4, 2025 Business No Comments5 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email


    Economic uncertainty is nothing new for entrepreneurs, but franchise systems are uniquely structured to soften the blow of cost pressures, tariffs and inflation. By leveraging economies of scale, innovating supply chains and maintaining strong lines of communication, franchisors can give franchisees a competitive advantage that independent operators often lack.

    To explore how franchisors are adapting and protecting owners’ bottom lines in these turbulent economic times, Entrepreneur spoke with 20-year industry veteran Nick Powills, chief growth officer of Mainland, a Chicago-based communications and content marketing agency focused on franchising and multi-location businesses. He explains why franchising is inherently resilient, what smart franchisors are doing to cut costs and where the model still needs to improve.

    Responses have been edited for length and clarity.

    Related: Considering franchise ownership? Get started now to find your personalized list of franchises that match your lifestyle, interests and budget.

    What is it about the franchising model that makes it resilient to economic shocks?
    There are multiple pieces to this. On the franchise growth side, turbulence actually drives interest in buying a franchise. Many times, when someone buys in, it’s because they’ve experienced career turbulence — like getting laid off — and no longer want to work for someone else.

    On the B2C side, franchising provides economies of scale. Even a 10-unit restaurant brand can negotiate better purchasing power for fixtures, supplies and food costs than an independent. That pulls pricing down and helps franchisees protect their margins. Smart brands start by engineering costs in their supply chain so franchisees are positioned for profitability from day one.

    Tariffs and inflation often hit supply chains first. What strategies are franchisors using to shield franchisees from those pressures?
    The smart ones focus on profitability first. A food brand’s approach to menu innovation starts with food costs — breaking down every ingredient before rolling out an item. That way, franchisees aren’t forced to sell exciting products that don’t make them money. When costs — for example, beef or chicken — swing up, food franchises can adjust their marketing to push items with more stable margins, like fries. That protects both the franchisee’s profitability and the customer experience, because the consumer isn’t seeing constant price hikes.

    Related: Fried, Fast And Franchised — These Are The Top 10 Chicken Franchises in 2025

    Outside of food, have you seen franchisors in other categories step up in significant ways?
    Yes, but there’s also a risk. Some brands overcomplicate operations. If a power-washing company suddenly adds gutters, it can derail operators who thrive under simplicity. Most franchisees are strong operators, not entrepreneurs — complexity hurts them. On the positive side, some brands innovate by diversifying smartly. Done right, those adjustments offset costs and create new revenue without overwhelming franchisees.

    How did the pandemic change the way franchisors prepare for economic turbulence?
    During March 2020 through 2021, communication skyrocketed. Franchisors were holding daily calls, doing whatever it took to help franchisees survive. That created record sales afterward because it strengthened community and customer loyalty. The challenge is that many brands have slipped back into old habits — limited support, less communication. The ones that maintained those strong connections are still outperforming.

    Related: ‘Send a Man Next Time’: How an Entrepreneur and Her Daughters Built a $2.5 Million Franchise in a Male-Dominated Field

    How important is that ongoing communication between franchisor and franchisee when times are tough?
    It’s critical. When someone buys a franchise, suddenly they need to be an expert in HR, supply chain, marketing and community engagement all at once. That’s overwhelming. Franchisors hold the keys to operational support — that’s why franchisees pay royalties. When brands over-communicate and over-support, it pays off in royalties because those franchisees outperform.

    Looking ahead, do you expect franchisors to continue innovating in cost savings, or is the model already optimized?
    There’s plenty of room for improvement. The cost of building out a franchise has skyrocketed, so innovation is essential. Franchisors also compete with each other for candidates. If we don’t protect franchisees — the people risking their life savings — the model itself suffers. There needs to be more consistency, best practices and fairness in things like broker commissions. The future of franchising depends on supporting owners the right way and giving them the tools to succeed.

    Economic uncertainty is nothing new for entrepreneurs, but franchise systems are uniquely structured to soften the blow of cost pressures, tariffs and inflation. By leveraging economies of scale, innovating supply chains and maintaining strong lines of communication, franchisors can give franchisees a competitive advantage that independent operators often lack.

    To explore how franchisors are adapting and protecting owners’ bottom lines in these turbulent economic times, Entrepreneur spoke with 20-year industry veteran Nick Powills, chief growth officer of Mainland, a Chicago-based communications and content marketing agency focused on franchising and multi-location businesses. He explains why franchising is inherently resilient, what smart franchisors are doing to cut costs and where the model still needs to improve.

    Responses have been edited for length and clarity.

    The rest of this article is locked.

    Join Entrepreneur+ today for access.



    Source link

    Team_NationalNewsBrief
    • Website

    Keep Reading

    What I Learned Spending Thousands on Meta Ads to Launch a New Product

    Overwhelmed by AI Governance? Start With These 4 Questions.

    5 Businesses I Wouldn’t Start in 2027 — and What to Start Instead

    Why Tech and Crypto Sold Off After the Blue Wave

    This Popular Health Wearable Startup Is Building a Social Network

    How to Get Started With AI Agents in 10 Minutes

    Add A Comment

    Comments are closed.

    Editors Picks

    Kate Middleton’s Return To Royal Walkabouts Leaves Fans In Awe

    December 27, 2024

    Nick Cannon Shares How He Juggles Thanksgiving With His 11 Kids

    November 29, 2024

    As many CEOs call employees back to the office, this CEO is bucking the trend and embracing remote work

    October 6, 2025

    Trump hires new White House ballroom architect

    December 5, 2025

    Steve Carell Said Paul Rudd Advised Him Not To Audition For ‘The Office’

    March 25, 2026
    Categories
    • Arts & Entertainment
    • Business
    • International
    • Latest News
    • Lifestyle
    • Opinions
    • Politics
    • Science
    • Sports
    • Technology
    • Top Stories
    • Trending News
    • World Economy
    About us

    Welcome to National News Brief, your one-stop destination for staying informed on the latest developments from around the globe. Our mission is to provide readers with up-to-the-minute coverage across a wide range of topics, ensuring you never miss out on the stories that matter most.

    At National News Brief, we cover World News, delivering accurate and insightful reports on global events and issues shaping the future. Our Tech News section keeps you informed about cutting-edge technologies, trends in AI, and innovations transforming industries. Stay ahead of the curve with updates on the World Economy, including financial markets, economic policies, and international trade.

    Editors Picks

    Inside Microsoft’s Rush to Get Back Online After a Global Outage

    November 15, 2026

    Cam Heyward Wants Two Big NFL Rule Changes After Week 9 Chaos

    November 15, 2026

    Russell Brand Secretly Moved To ‘Cushy’ New Prison

    November 15, 2026

    Philippines, Australia sign updated defence agreement

    November 15, 2026
    Categories
    • Arts & Entertainment
    • Business
    • International
    • Latest News
    • Lifestyle
    • Opinions
    • Politics
    • Science
    • Sports
    • Technology
    • Top Stories
    • Trending News
    • World Economy
    • Privacy Policy
    • Disclaimer
    • Terms and Conditions
    • About us
    • Contact us
    Copyright © 2024 Nationalnewsbrief.com All Rights Reserved.

    Type above and press Enter to search. Press Esc to cancel.