Latest / Franchise Conversations with Fexingo: Buying, Running, and Scaling Franchise Businesses
Why Franchisees Are Walking Away from Renewal Contracts
This episode dives into a growing but underreported trend in franchising: franchisees choosing not to renew their agreements when the initial term expires. Lucas walks through data from the 2025 Franchise Business Economic Outlook showing that non-renewal rates have climbed to roughly 12 percent, up from 7 percent a decade ago. He focuses on one specific case — a multi-unit franchisee of a major quick-service brand in the Midwest who walked away from 8 locations after 15 years. The conversation explores the math behind the decision: escalating royalty rates, tighter supply chain mandates, and…
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