Current Franchise Industry Trends Reveal the Many Benefits of Being a Franchisee
What are today’s franchise buyers looking for? If current workplace trends are any indication, entrepreneurial individuals from all backgrounds desire the benefits of being a franchisee, including financial freedom and flexibility.
The franchise industry has shown resilience and is a leader in U.S. economic growth. The International Franchise Association (IFA) predicted that the industry would grow by 2.2% in 2022 to 792,014 franchise establishments, which is 17,000 more compared to 2021. The booming franchise industry is fueled by qualified investors having greater access to capital and flooding the market with products and services that support nearly 8.2 million direct jobs. The franchise industry offers a one-of-a kind opportunity to leverage this growth and take advantage of the many benefits of being a franchisee.
Below is a look at current franchise industry trends that prove it's a great time to consider franchise ownership.
What are Today’s Franchise Buyers Looking for?
The pandemic-induced Great Resignation showed that workers value flexibility and want a better work-life-balance, which goes hand-in-hand with franchising. Benefits of being a franchisee include becoming your own boss; the ability to pursue other opportunities with semi-absentee franchise ownership; and the opportunity to run your business from home or a mobile unit. Corporate employees don’t have that kind of flexibility or freedom.
A misconception about franchising is that many franchises are huge investments. There are actually many low-cost home-based and mobile franchise opportunities with an all-in investment of less than $25,000. From travel planning and business consulting to real estate and pet-related franchises, you don’t need a lot of capital to get a business up and running. With a home-based business, you save on real estate and construction costs as well as labor and utilities.
While it may be tempting to be risk averse during uncertain times, a recession or an inflation cycle can be some of the best times to consider business ownership. With the likely closure of less profitable companies during an economic downturn, entrepreneurs can hit the ground running with a more resilient franchise and less competition. Even during an economic downturn, people still spend on their homes and cars, care for their sick family members, and go out to eat at their favorite restaurant. With countless entrepreneurs working to meet these needs, franchising has proven to be a steadfast, recession-proof model.
Multiple Revenue Streams
One of the benefits of being a franchisee is the ability to have a business with multiple revenue streams and recurring revenue. With a fast-food restaurant, for example, you can profit from online and drive-thru orders, branded merchandise sales, third-party delivery partnerships (Uber Eats and DoorDash), and catering services. With an educational franchise, you can offer one-on-one tutoring as well as test preparation services for students who need extra help. A membership-based spa franchise can offer services and sell products, too.
Franchise ownership is about more than just making a profit; you can provide feel-good services that make your business beloved by many communities. For example, it’s a great feeling to offer families senior care services. With a restaurant, you can bring communities together and offer great food simultaneously. Many consumers are also more aware of their carbon footprint and want to go to businesses that value sustainability. With an eco-friendly franchise, you can offer non-toxic beauty, industrial waste management, and cleaning services. The opportunities to provide feel-good services are endless in franchising.
Diversity and Inclusion
Franchising levels the playing field and gives entrepreneurs from all walks of life the opportunity for success. Many franchisors have diversity, equity and inclusion initiatives to ensure all feel welcome. The IFA also champions diversity with initiatives like the Hispanic Latino Franchise Leadership Council and the Black Franchise Leadership Council. Inclusion of the LGBTQIA+ community matters to Gen-Zers and Millennials — two groups that are considered the most entrepreneurial generations ever.
What Are Today's Franchise Buyers Looking for?
As you can see, today’s franchise buyers are looking for flexibility and financial independence. These are some of the many benefits of being a franchisee and differentiate franchise business owners from corporate employees. With training and support from franchisors, franchise owners just have to follow the system and put in the work to make the business successful as possible.