Future of Franchising: Identifying the Areas of Growth

The future of franchising is bright due to the integration of technology and the rise of entrepreneurship. See why franchising is expected to grow.

A POST-COVID FRANCHISING BOOM

Many workers around the globe faced furloughs and layoffs at the onset of the pandemic in 2020. Now, as the world reemerges, people are reevaluating their career paths and personal goals, which has prompted a mass exodus in the workforce across various industries. With shifting priorities and values, ambitious entrepreneurs are turning toward franchising like never before, as it offers the freedom and value that is increasingly becoming a priority for many professionals.

While many industries and companies were adversely affected by the pandemic, the future of franchising is well on track thanks to the best franchisors’ ability to embrace innovation in a changing world. With redundancy rates higher during the pandemic than any other economic downturn in recent history, the opportunity for savvy professionals to make a career shift and go to work for themselves has emerged. Even for those who never previously considered owning their own businesses, the world of franchising has become a viable and appealing option.

For individuals who are set on owning their own business but are still unsure of pursuing the franchising route, it’s important to note that the franchising industry is generally less risky than independent ownership. A study conducted by FranNet found that 92% of franchises were still in business after two years, and 85% after five years. Alternately, studies find that 25% of independent businesses fail within their first years, and 50% within five years.

As pandemic life recedes, people are reevaluating their future and leaving jobs in search of more money, freedom, and personal happiness. Franchising presents the perfect opportunity for these individuals to apply their skills and experience toward a career that works for them.

FRANCHISING TRENDS

According to a report from the International Franchise Association, 2021 saw franchising generate more jobs, advance careers, and contribute positively to the global economy unlike almost any other industry. Total output from franchises increased by 16.3% over 2020 to nearly $788 billion, exceeding 2018 numbers by over $20 billion.

Franchises have expanded their workforce, with 8.8% more people employed at the end of 2021 than the same time the previous year. This gain of over 660,000 jobs is great for employers and workers, alike. For 2022, the industry predicts that another 17,000 new franchise businesses will open, showing a growth rate of 2.2% over 2021. As opposed to an independent venture, franchising allows business owners to benefit from comprehensive training and support while following a proven business model that informs everything from best customer service practices to recruiting and retaining workers.

The future of franchising looks especially bright in real estate, commercial and residential services, and retail.

WHERE FRANCHISING IS GROWING

In addition to overall industry growth, the future of franchising looks especially bright in three leading sectors: real estate, commercial and residential services, and retail. FRANdata predicts 3.5% growth in the real estate market this year, driven by low-interest rates and the steady demand for home sales. While many retail businesses were hit hardest amidst the pandemic, these businesses are reemerging stronger than ever and capitalizing on new opportunities. Commercial and residential services remained essential during the past two years, their appeal and trajectory is likely to only increase.

After a period marked by challenges and uncertainty, it’s exciting to see an industry not only return to normalcy but improve and adapt to work for customers and business owners, alike.

STEP INTO THE FUTURE WITH HOME FRANCHISE CONCEPTS

With a combined ability to work for homeowners seeking to make improvements to their properties and allow dedicated entrepreneurs to go to work for themselves as independent business owners, Home Franchise Concepts is a winning family brand. Home Franchise Concepts is debt-free and owned by JM Family Enterprises, Inc. with $18B in assets.

To learn more about the different HFC franchise opportunities, contact us. One of our franchise consultants will be in touch to answer your questions so you can see if owning one of our franchises will fit into your lifestyle, as well as align with your future.