BiggerPockets Money Podcast · Tuesday, September 8, 2026
Rising interest rates make franchise financing more expensive, potentially requiring larger down payments or increasing loan payments. Conversely, increased costs for goods and services have boosted demand for certain franchises, like home services. Franchisors face higher operating costs, but the demand for franchising as a de-risked entrepreneurship path remains strong.
“For buyers, the rising interest rates have made financing more expensive, so that initial cash down payment might need to be a bit larger, or the loan payments will be higher. This can make some franchises less accessible.”
“However, on the flip side, rising costs for some essential goods and services have actually boosted demand for certain types of franchises, like those in the home services sector or maintenance and repair.”
“For franchisors, they're also facing increased costs for supplies, labor, and rent. This can impact their profitability and might lead to some increases in franchise fees or royalty rates.”