These trends are the reason why franchise businesses are further becoming an inspiration to new business ideas.
Since the time of its inception in the 1920s, the concept of franchising has flourished and has been one of the most sought-after models of operating a business. In recent years, franchising has become one of the favorites of every big and small entrepreneur due to the various advantages that it gives to businesspeople.
In its journey of evolution, franchising as a concept has adapted to various changes and trends that have led it to flourish in the world. These trends are the reason why franchise businesses are further becoming an inspiration to new business ideas. For example, ‘McDonalds’ is the one of most successful brands in fast food chains and has inspired many other brands such as ‘Burger King’ in India.
Here are the biggest trends in franchising:
The demographics of each and every country are changing due to various 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.
As trends change, many new business segments emerge in the economy. These changing trends help one business to grow and lead the other ones to diminish from the market. Only a few segments are the ones that do not get affected by the fads. For example, salons, schools, hospitals, etc are the ones that are recession-proof businesses and could do well in any economy. Many of the brands that operate on franchising are the ones that fall under the recession-proof category, i.e., they could do well in situations.
Emergence of Women in Entrepreneurship
The concept of 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, 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.
Internationalization of Franchising
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.
Intervention of Technology
Like any other aspect of development, technology has not left franchising untouched. The Internet plays a crucial role in the success of a franchise these days. It helps franchisors connect with franchisees through various online 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.