Whether you’re making a move from the corporate world or continuing entrepreneurial endeavors, it’s imperative to be a well-informed buyer before diving into a new business venture. That’s why potential franchise owners need to have a pulse on the trends that could impact the brands they select.
Explore the top five current trends in franchising, and use them to help you uncover the right franchise for your future.
Multiple Funding Options
In the old days of franchising, you basically had one option: to fund your business out of pocket. There were very few specialized loans for small businesses or funding options for entrepreneurs.
Today, however, there are more funding options than ever for future franchise owners – from SBA loans to professional financing partners to retirement rollover funding. If you want to own your own franchise but don’t have quite enough cash on hand to buy, make sure you’re up to date on the plethora of opportunities available to you.
Growth, growth, growth. Talk to any franchise owner today, and you’ll quickly learn that expansion is one of their top goals. With so many funding options on the table, opening multiple franchises is a definite possibility.
It’s estimated that in 2016, the number of franchises will continue to grow, and employment in the franchise sector will increase by 3.1%, outpacing the rest of the economy. In fact, the franchise GDP (gross domestic product) will increase by 5.6% to $552 billion this year. With that much growth, it’s smart for entrepreneurs to assess every franchise venture from two perspectives: as both a first-time investment and a future expansion opportunity.
Millennials are now getting in on the franchise game. Emerging as a target market for franchise buying, millennials (adults aged 18 to 34) are seeking the autonomy that comes with owning your own business.
In 2015, this group surpassed baby boomers and Generation X demographics to become the largest workforce in the nation, with more than one in three workers being a millennial. Given the variety of funding options available now, it’s easier for a younger market to invest in franchise opportunities.
In the past, supportive franchisors have helped their location owners with marketing outreach in the form of commercials, ads and direct mailers. Now, digital marketing is playing a huge role in bringing customers into stores.
Think about your own buying process. If you were looking for a gym membership near you, you would simply Google it. This is why the top supportive franchisors now provide their location owners with all the digital tools they need to reach out to potential clients. From location-specific websites and social media accounts to Google and Facebook ads, franchise owners are connecting with an entirely new audience.
If you’re thinking about buying a franchise location, make sure that the franchisor you’re selecting offers these digital tools or, at the very least, adequate training on setting up these channels for yourself.
Health And Wellness
Today, there are more gyms in America than ever before. In 2015, there were more than 34,000 gyms nationwide, a 6.4% increase over 2014. An interest in health and wellness franchises is growing – and so are the profits that come with running one.
A number of factors have caused this surge in interest, including the rise in baby boomers concerned with their health, as well as the increase in education on health and wellness as a whole. As 2016 moves forward, be on the lookout for the health and wellness industry, already a $3.4 trillion global industry, to multiply in value.
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