Franchising has grown steadily over the past decade, with franchise establishments expanding faster than the overall economy. As we enter 2024, several key trends will shape new franchising opportunities and innovations going forward.
In this article, we will explore major developments in franchising that are likely to impact both new and existing franchise models. From tapping into the share economy to leveraging smart technologies, franchises will continue to adapt to evolving consumer demands and preferences.
The share economy and the rise of crowdsourcing platforms have created new avenues for franchise growth. Franchises are increasingly integrating share economy elements that allow franchisees to leverage contractor resources and flexible schedules.
Brands that effectively tap into the share economy can expand while offering franchisees attractive, scalable business models. The ability to utilize contract workers allows for a more flexible labor force to meet fluctuating demand. Meanwhile, the sharing economy also opens up opportunities to those interested in being partial franchise owners or contractors.
Continued Growth In Food Franchising
The food franchise industry exhibits no signs of slowing momentum, having accounted for over one-third of all new national franchise units over the past five years. Fast food burger franchises remain widely popular, with many industry experts naming Sonic as the best burger franchise in terms of quality, service, and value.
Innovative food service concepts in areas like meal preparation, healthy meal delivery subscriptions, and snacking continue to gain remarkable consumer popularity and loyalty. Simultaneously, food franchises are actively integrating smart technologies for online ordering, delivery coordination, customer promotions, and inventory management.
These tech capabilities provide franchises with robust real-time performance data while allowing customers more convenient options to access menu items. Additionally, tech-enabled systems make it simpler for franchise owners to acquire and manage multiple units.
Increase In Tire Franchises Offering Veteran Programs
A rapidly rising number of prominent automotive franchises, including many top national tire and auto repair brands, have instituted specialized discounts and favorable financing programs for military veterans seeking franchise ownership. For example, a retail tire franchise can prove to be an especially attractive option for veterans.
Such franchises integrate varied services, from tire sales to maintenance to wheel alignments, delivering strong brand name strength alongside essential products facing recurring consumer demand. Moreover, explicitly supporting veteran franchisees has become a priority growth strategy for brands seeking to onboard qualified, skilled owners to propel expansion into new territories.
By structuring discounts and competitive financing, vehicles, tires, and automotive franchises facilitate more accessible entry points into business ownership specifically tailored for veterans transitioning after service. In return, these franchisors welcome veterans’ transferable leadership abilities, technical skills, and proven capacity to implement operational management systems with precision and consistency.
Coworking Space Franchises On The Rises
Another trend to look for is the rise of coworking spaces. Primarily, they provide shared work environments for freelancers, remote workers, and independent professionals.
As remote work booms, coworking franchises have emerged to meet the demand for these flexible office spaces. Major franchisors in this space are accelerating coworking space growth. Coworking appeals to those seeking community, amenities, and networking alongside an office.
With over 1,000 coworking spaces in the U.S. presently and growth forecasts projecting upwards of 15,000 by 2024, this niche franchise category will rapidly expand in the years ahead. As the workforce and businesses decentralize, franchised coworking spaces will shape the future of office environments.
More Focus On Health And Wellness Franchises
The expansive health and wellness industry has charted explosive nationwide growth, with estimates surging past $500 billion in recent annual revenues across fitness, nutrition, medical, beauty, and other subsets.
Consequently, innovative health-adjacent franchises continue to emerge to serve swelling consumer demand in categories ranging from boutique fitness to cryotherapy, children’s wellness programs to experiential medispas. Franchise consultants further predict sustained investor enthusiasm and continued growth within specific health niches like massage therapy, behavioral counseling, health foods, and supplement stores, given alignment with macro consumer priorities.
As health consciousness only continues to rise across diverse demographics, we expect strong performance within both pioneering health franchises and trusted established brands that successfully adapt their offerings to satisfy evolving wellness preferences.
In particular, the franchises projected to continue leading broad industry growth will be those that most effectively target specific health segments with their services, products, and experiences most valued by modern consumers and communities.
In A Nutshell
Major trends like the growth of the sharing economy, food franchising, veteran programs, and health/wellness brands are shaping an exciting franchise landscape filled with opportunities. Franchising continues to foster an entrepreneurial culture where both franchisors and franchisees can thrive by leveraging the latest demands and innovations.