February 10th, 2023 | Franchising 101
When many people think of franchising, they think of fast food. Sure, fast food restaurants are some of the earliest and most prominent examples of franchising. But in the past few decades, franchising has evolved far beyond food service. There are franchises in hundreds of industries, including healthcare, travel, fitness, pet grooming, and home services to name just a few.
The typical franchisee has changed, too. For a long time, franchises were primarily owned by men who bought one location in order to provide for their families. It was a job, not an investment. Today, according to FRANdata, a company that tracks franchise ownership, multi-unit ownership accounts for 54% of all franchises. For them, franchising is an investment—some own hundreds of units and make millions of dollars in revenue a year.
Trends in franchising, as in all businesses, are shaped by the economy, as well as shifting societal and cultural norms. For instance, Census Bureau data show 31% of franchises are owned by women and 30.8% are owned by minorities.
How COVID-19 Has Changed Franchising
The COVID-19 pandemic continues to have an impact on every aspect of our lives, including franchising. Entrepreneurs want to know how resilient a franchise is before they invest. Is the brand strong enough to survive? How will the franchisor support them during difficult times?
Consumers’ changing needs during the pandemic have also created more of a demand for franchises providing certain services. Drive thru coffee shops saw an increase in business. Commercial cleaning companies won more customers by adding disinfecting and sanitizing to the services they provide. Since people are spending more time at home, possibly even working remotely, the demand for home services like redecorating and renovating continues to be high.
Franchise Trends with An Eye on The Economy
One of the most prominent franchise trends is the popularity of what’s called-recession resistant franchises. These are franchises who provide goods and services that people need, no matter how the economy is doing. They include things like health and childcare, home repair, and auto maintenance.
There’s also been a rise in the popularity of franchises that can be operated without a retail location, including home-based and mobile franchises. Not having to pay the costs associated with a brick-and-mortar location can help a franchise start turning profits sooner.
And, with unemployment at record lows, new franchisees have seen the benefits of investing in franchises that don’t require more than a few employees.
Another franchise industry trend is the rise of the multi-brand franchisee. These franchisees own two or more different brands in the same market. This helps them reduce risk by limiting the amount of eggs in one basket.
Home Franchise Concepts Checks All These Boxes
In business for more than 30 years, Home Franchise Concepts has learned how to stay ahead of franchise industry trends. Nine different home services companies make up our family of brands: AdvantaClean, Bath Tune-up, Kitchen Tune-Up, Concrete Craft, Budget Blinds, Two Maids, Premier Garage, The Tailored Closet, and Aussie Mobile Pet Grooming. This gives franchisees who want to own more than one brand in a market a lot of options.
Home Franchise Concepts provides continual support for all our franchisees, from the moment they sign with our brand, for as long as they own their franchise. Plus, Home Franchise Concepts Is backed by JM Family Enterprises, an $18 billion company that is ranked 17th on Forbes list of largest privately owned companies.
Get Started with Home Franchise Concepts Today
If you are ready to get out ahead of the franchise trends, contact us today. One of our franchise advisors will be in touch to answer your questions, so you can determine which one (or more!) of our brands is a good fit for you.