In its journey of evolution, franchising as a concept has adapted to various changes and trends that have led it to flourish across the globe. Read on...
Since the inception, the concept of franchising has flourished and has been perhaps the most pursued model of operating a business. In recent years, franchising has become one of the favorites of every sort of entrepreneur due to the various advantages that it gives to businesspeople such as, they don’t have to start a business from the ground.
Thorugh, the evolution of franchising as a concept has adapted to various changes and trends that have led it to flourish across the world. These trends are the reason why franchise businesses are further becoming an inspiration to new business ideas and entrepreneurs. For example, ‘McDonald’s’ is the one of most successful brands in fast-food chains across the globe and has inspired many other brands such as ‘Burger King’ in India.
Here we have discussed the biggest trends in franchising, read on to know more...
1. New Trends-
The demographics of every single nation is changing because of different reasons such as population growth, migration of people for job opportunities and studies, among others. The number of millennials, baby boomers, seniors, and minorities – all have gone manifold in number. This change in demographics has diversified the market largely. For example, increasing population and migration of people have added to the target population of various businesses. As the target market becomes stronger, franchisors and franchisees are likely to adapt to this changing customer and employee base to find opportunities for growth.
2. Growth Segments-
As demand changes, many new business segments emerge in the economy of countries across the globe. These changing trends help one business to grow and lead the other ones to sink deep in the market. There are only a few segments that do not get affected by most of the trends. For example, salons, schools, hospitals, pharmacies, etc are the ones that are recession-proof businesses and could do well in most economic conditions. Many of the brands that operate on franchising are the ones that fall under the recession-proof category. Most of them could do well in various situations.
3. Women Entrepreneurship-
Franchising gives liberty to those groups who lack the capital and business experience, one such group is women. There was a time when the number of names of women in the list of business owners was low, but in the past few years, as people across the globe explored the benefits of franchising and started to invest, this has really changed. And, as franchising started to gain popularity, it seems to have guidelines favorable to women. Therefore, various women entrepreneurs are showing interest in owning franchises in their favorable sectors.
4. Internationalization of Franchising-
The internationalization of business operations is the most critical decision a company may take. Internationalization can be defined as the process whereby a company starts to operate across national borders. Franchising is not just limited to expanding in one’s own country; it has also helped the brands in expanding into other countries too. According to recent studies, more than 400 US-based franchise brands operate internationally.
5. Development of Technology in Franchising-
With the touch of development, technology has taken franchising to another level. The Internet plays a crucial role in the success of a franchise business these days. It helps franchisors connect with franchisees through various online platforms and social media platforms. It even helps them in sharing critical information and expertise with each other. Also, advertising has become quite efficient with the help of technology.