Franchise industry is growing. And some sectors across this industry are taking the lead and flourishing incredibly. As per the latest numbers, quick service restaurant chains own the biggest market share. Companies providing commercials cleaning services won the second position in the growth analysis chart. Fitness and senior care service providers rank third.
All these sectors have their respective key growth drivers that help the businesses gain popularity with the masses. Reliable data shows, that some of the most successful sectors in the franchise industry did very well in 2014 and expect same growth prospect in 2015 as well. Emerging entrepreneurs thinking of entering the franchise industry could tap opportunities in the sector.
Fitness Sector: Growing health concerns in people has been one reason for the growth of the sector. A company called Anytime Fitness has seen remarkable growth in recent years. They have been able to expand to 50 states and almost 20 countries. The year 2014 has been excellent for them especially.
Beauty and Personal Care: This is also another compelling sector that is doing very well in the franchise industry. The rising economy has given people access to more surplus money that they can spend on such services. Franchise businesses like hair salons, beauty and personal care have been growing steadily. A similar business named Supercuts grew incredibly last year. The company opened 124 new stores across the US.
Food Retails: Food retail sector is also driving the overall franchise industry growth. A franchise company named Jimmy John’s has been seeing amazing business growth in recent years. They prepare ready to eat 8 inch sandwiches. Although they don’t sell anything unique, the super fast delivery service of the franchise company has gained popularity over the years.
Another food retail chain that saw good growth was Pizza Hut. The franchise company recently changed their whole menu to introduce a new range of recipes with a tweak of build your own pizza concept. The business idea is a hit.
Tech Sector: Franchise Industry has witnessed amazing growth in the tech sector as well. Craze for Smartphone and mobile based services are taking the growth of the sector to a new height. Website development and maintenance companies are now working on mobile optimized sites. Food retailers are creating new apps for the convenience of consumers, which give further opportunities to the tech sector.
Franchise Industry Growth Contributors
The growth contributing factors for an industry differ according to a country’s economic condition, living standard and purchasing power of the residents and other macroeconomic factors. For example, a recent franchise growth survey conducted in Australia revealed, that the café and coffee businesses, fitness and well being sector are doing very well.
Also many financing companies including mobile businesses like courier service have optimized growth. Services like handyman repair, food trucks, coffee vans, food stalls providing healthy eating options have seen higher growth and expect the same in the current year.
The survey indicated, that the growing popularity for healthy living, convenient and prompt service among the busy Australians and rising costs have been the major growth contributors.
Franchise Industry Challenges
Despite the inspiring growth, this industry is not immune to challenges. Some of the top concerns that worry the franchisors are government regulations, access to capital, fierce competition and taxes. According to Steve Caldeira, International Franchise Association (IFA) President and CEO, the various sectors in the franchise industry need tax and policy reforms for faster growth. Tax reforms will help franchise businesses to invest more in creating multiple units and jobs for the economy.