Are you considering purchasing and owning a franchise business yourself? Which franchises are best suited
for your budget and skill set? Which franchises are the safest bet? We share some of the latest trends.
Buying a franchise can be a viable alternative to starting your own business from scratch. Franchises offer people wishing to start their own business the independence of small business ownership supported by the benefits of a big business network. A franchise business often has an established reputation and image, proven management and work practices, access to national advertising and ongoing support. In a franchise business, the franchisor provides a secure way of operating a business model, in return for ongoing payment of fees and/or purchases.
Buying a franchise in America offers many different options. If you are looking for retail, home based, mobile, senior care, automotive, educational, food, and even pet friendly the options are endless for you to start your own business. Some of the top franchise opportunities started right here in the USA. American franchises offer more than other business opportunities in the USA – they give you a proven system to make the best of your franchise journey.
When looking at franchises available in the USA and choosing the best franchise opportunities for you, it is always important that you do your due diligence and speak to experts in the industry who can give you valuable advice. Our franchise magazine contains a wealth of expert advice to help you get started with a
Speaking to current and past franchisees is also a must, as they know what it really involves to operate a franchise in America. Most American franchises will allow you do to this, and even recommend that you
speak with existing franchisees.
Franchising and businesses for sale is not a guaranteed path to success, but it is a solid formula based upon tried and tested franchises in the USA that can pave the way to success.
Franchises in the USA work because they deliver goods or services in a consistent manner, regardless of location. A USA franchise allows for the flexibility of business ownership without so much pressure.
However, even the best franchise opportunities will not work for you if you don’t enjoy what you are doing. It is important to find a franchise that suits you. And while many franchises have taken a beating this past year due to the global pandemic and subsequent hit to the economy, a remarkable number of franchises were able to get back up, dust themselves off, and become stronger than ever.
The hottest trend? Resilience!
Franchises that are showing resilience in the face of adversity are the ones that have embraced new trends to stay relevant. The ones that have adapted new systems and protocols to keep customers safe, for example, or the ones that have embraced online alternatives to in-person services, or the ones who see future demand for sustainable products and react to meet this need—these are the franchises that are
ensuring their franchising system continues to be a trending, relevant one. Many of the changes we have seen in the past year to the way businesses operated were adapted virtually overnight. Some had already been developing over many years; developments like cashless payments, e-commerce stores and home delivery for a wide cross-section of takeaway options have been the norm for some time now. Other developments like QR scans, hygiene stations and social distancing were sudden and reactive. But after sorting out the initial teething problems, franchisors who rallied to quickly react to, and implement, these changes were able to adjust, adapt and survive.
The pandemic also opened up opportunities for some franchises and demonstrated how quickly franchise systems can respond quickly to unexpected change. When considering a resilient franchise, take a close look at the ones that have been thriving during lockdown and examine what innovations they introduced
and how they managed their business, their people and their future strategies during that tumultuous time.
Franchisors looking to the future
Looking to the future, many of these changes are likely to stick around. Customers are likely to continue to appreciate the convenience of home shopping from an online store, menu ordering apps, mobile repair services and increased hygiene and safety standards in home care, health, beauty and fitness services.
Over the past year, many franchisors have also been stepping up to support their franchisees. The good news is this seems like a trend that will continue well into the future as franchisors and franchisees realise the benefits of a strong support network in building resilience and longevity. The franchises that pay attention to trends by listening, observing and reacting to the needs of their franchisees and their customers are not only making sure their business stays afloat during changing times, they’re building the
business traditions of tomorrow.
Tips for Choosing a Trending Franchise
Whatever kind of franchising opportunity you are considering, keep in mind these important tips before making any big decisions on your franchising future.
• Trend vs Fad: Some business ideas are here today, gone tomorrow. Taking a risk on investing in a shiny new business proposition can be rewarding, but risky. If you are looking for a trending franchise that offers a safer investment, look for a franchise that has an established track record balanced with a keen understanding of business trends. For example, it might be traditional retail store with household brand name recognition, but one that also offers automated online sales.
• Due Diligence: A key piece of advice for all new franchisees is to thoroughly conduct due diligence. This is especially true if investing in an up-and-coming trending franchise. Do your homework, carefully read the Franchise Disclosure Document (FDD), attend networking events and discovery days, and talk to other franchisees. Learn what fees, licensing and royalty arrangements are in place. Don’t be afraid to ask lots of questions. A franchisor with a reputable business proposition with established processes in place should be able to answer all your questions, confidently.
• Future Thinking: Does the business have longevity? Are the trends they are implementing value-adding to the longterm profitability and trustworthiness of the brand? Again, what you do with the answers to these questions depends on what kind of investment you are seeking. If you are up for a risk and looking for a franchise that will turn a profit in a short space of time, a ‘trendy’ franchise like a fun and quirky food franchise (think Kramer of classic TV sitcom Seinfeld’s out-there business idea of a “pizza place where you make your own pie!”), may be just the ticket. But if you are looking for a franchise with at least a five-to-ten year commitment, consider whether the product or service being provided will still be popular or in demand far down the track.
The most compelling part of the franchising industry is that it’s always developing, growing and finding new and innovative ways to make a successful and profitable business. As consumers needs change and expand, so does the economy and therefore franchises. Trends start to falter and new fads create business opportunities that could be the next new thing that everyone needs or wants. There are constant ongoing opportunities to consider and review for investment.
Some of the trends ahead for 2021/2022 A trend for convenience and time
The economy used to be forced and guided by a human need for materialistic products. Americans took pride in ownership and enjoyed having the best new gadget. While that necessity has never faltered, there is a new driving force behind businesses that has changed the course of business.
Consumers are hooked on the idea of paying for time and investing in convenience. A service that provides freedom and time to be with their families is considered money well spent.
This has created a trend in related franchises, particularly in Cleaning Services. A working family barely has time to keep up with the demands of a busy household. Cleaning services used to be a trend only available to the luxury class because it wasn’t worth the money for everyone else. Now people budget
their income to provide for such a service so they can use their free time to be with family and enjoy the things they love.
The cleaning industry is not simply household chores; there are speciality services including window cleaning and dry cleaning, residential cleaning as mentioned above, and commercial businesses – which all have franchising options. There are a variety of options to consider that are profitable within the franchising field. It’s currently a $78 billion industry when you consider all the options available.
Though this field of interest is easily accessible because it has a lower start up cost, there are some drawbacks. The business is very dependent on its workers and reputation. With strong competition,
there is always another option down the street or a cheaper option accessed through social media or service apps. Therefore, a franchisor might want to review cleaning standards, talent and HR management and possible turnover. A cleaning franchise with a reliable operations plan, as well as a successful rate for long term employees and management could be more successful and dependable.
A trend for Education and Recreation
Educational development is a newer trend with a wider variety of options in franchising. Parents are more likely to invest in their children’s futures and schooling than ever before. Most parents want their kids to have opportunities that they hadn’t as a child and therefore willing to prioritize money to have a better education – as well as knowledge in other categories outside of the school yard.
The most common opportunity is supplemental education in the form of tutoring. Some of these franchises have a fixed location with tutors reporting to work during certain hours, while other options allow franchisees to work from home and contract out tutors to customers.
These options have different start up costs, responsibilities, and expectations. A large corporation with a steady group of workers has a higher investment fee, but an at home business may cut into more family and personal time with bigger responsibilities and operational considerations.
Recreational franchises include birthday party celebrations franchises. Birthdays are no longer blown up balloons and freeze dance, but rather a huge business opportunity. There is a growing number of mobile franchises have different entertainment packages that can bring the party to you, like gaming trailers or blow up castles.
The mobile recreational entertainment franchise has a lower start up fee, but there are stabilized franchises that are open to the public every day and offer birthday party venues: trampoline and indoor jungle gyms, arcade and restaurant opportunities are a few examples.
Recreational and sport franchises are on the rise as the demands of parents and children are ever developing. These are great options for those who want to work with kids and run a successful business.
Other popular trends
The franchising industry has opened its doors to more investors, as opportunities develop and consumers expect more choice but want to spend less money, and now the variety of franchises is endless.
A trending type of franchise is one within the everyday person’s price range and these include mobile franchises. Without a large location to secure, franchisees work from their home and service people sight on scene.
Mobile businesses are accessible to a lot of people who are interested in franchises and have a lot of options dependent on your passion. Though the work and responsibilities may be a little different
than most franchises, it a franchise that is always developing and peaking interest.
Franchising today offers a bigger world of opportunity than ever before and is constantly developing. Even a trending franchise can grow into new developments that are more popular that it was initially expected.
Either way, all business is developed and determined by the wants and needs of consumers and nowadays busy families want convenience at a lower costs which has been the driving force behind the more popular and trending franchises of today.
Don’t forget to check out our October issue when we will take a look at Women in Franchising.