Trends That Are Changing The Business Of Franchising


Franchising has changed over the years. In the beginning, it was a way to own a single location. This was when franchisees were content to earn a modest income. In the United States, there is more than 50 percent of franchise owners who have multiple units. Some own hundreds of units with millions of dollars in annual revenue. These franchise owners usually don't work in their stores. They manage a professional staff to operate their businesses. There are a number of trends currently impacting the world of franchising.

Growth Segments

There are certain areas of the franchise world that are growing more than others. According to Franchise Direct, there seems to be a move toward franchisees that remain successful even in difficult economic times. This includes such businesses as tax preparation, child and pet care, home repair, tax preparation and others. It's also becoming more common for a franchisee to own more than one type of franchise. This enables them to diversify their business in different markets. This is a good way to grow a business and have income protection during economic change.

Changing Demographics

The population of the United States is changing. It is affecting consumer behavior and impacting the labor market. Millennials are the first generation to be raised on the internet. When employed by a franchise, they are comfortable working with the computer systems involved. Millennials also respond well to online marketing more than other demographics. The needs of the Baby Boomer generation has caused an increase in travel services as well as nutrition, cabinet refacing for a new look, cosmetic, and health businesses. Seniors are now an affluent demographic. Healthcare services as well as home renovations, oriental rug cleaning and others that are geared toward senior life are expanding.

Green Businesses

The growth of green businesses has been steady over the years. There are federal and state governments trying to provide more funding for the green energy businesses. This includes everything from recycling materials to green building construction, renovation and more. There is also an increased need for items that are energy efficient. This trend is expected to continue to expand. As it does, the green businesses opportunities will multiply providing a number of new franchising opportunities.

Sustainable And Organic

A growing trend with franchisors is an increase in using sustainable as well as organic food suppliers. They are moving away from unhealthy food ingredients such as non-organic items, high-fat items, and others. According to McDonald's, it will begin using only cage-free eggs during the next decade. Subway has committed to only using beef that is antibiotic free. This trend is expected to expand into smaller franchises. It's recommended that restaurant franchises embrace this change for the future.

Creative Locations

Many franchisees are finding success having their business at non-traditional locations. This includes being in big box stores, bookstores and other types of retail locations. The challenge is to seek mutually beneficial locations. This is a trend that is on the increase. There have been food franchisees at auto repair shops, clothing retailers and more.


Franchising is discovering the benefits of doing such things as developing mobile apps that provide games for individuals to win their products or services. This has increased business traffic as well as social media followers and more. Some have developed computer metrics that make upselling items a bit of a game. This has increased sales and decreased staff turnover rates.

Chip Credit Cards

There is now a regulation that all businesses must have a new reader that includes a slot for credit cards with an EMV chip. A franchisee will not be fined if they do not have the new terminals. It's important to realize that if a transaction results in credit card fraud occurring, the bank or merchant processing company are no longer obligated to cover the loss. That liability is now the responsibility of the merchant who accepted the card. It's important any business get these new terminals and avoid putting themselves at risk.

Successfully operating a franchise will require an ability to adapt and change. Identifying trends and using them to your advantage is essential to growing any business.

Lee Flynn is a freelance writer. Through small local workshops and articles, Lee trains and teaches others on home preparation, healthy living, food storage techniques, and self reliance. 

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