3 Hot Topics in Franchising for 2024

The franchising industry is continually evolving, influenced by factors such as societal shifts, technological advancements and economic changes. As we navigate through 2024, several trends are emerging as hot topics in the franchising world, reshaping the way businesses operate and expand. 

Here are three key areas garnering attention:

Essential Services Franchises Remain Resilient

In the wake of unprecedented global challenges, essential services franchises have proven to be remarkably resilient. These franchises, which include industries such as cleaning services, home maintenance and healthcare, have continued to thrive even amidst economic uncertainty. The fundamental need for these services remains constant, providing a stable foundation for franchise owners.

“Regardless of the economy or cultural waves, franchises that offer essential services will continue to be a popular investment, and for good reason,” wrote Lauri Curran Greenberg, franchise consultant at FranChoice, in a LinkedIn post. “The clue, after all, is right in the name. These franchises offer services that people can’t do without: automotive repair, health care, disaster remediation, and the like.” 

The COVID-19 pandemic highlighted the critical importance of cleanliness and hygiene, driving demand for cleaning and sanitation services. Franchises offering sanitization solutions for homes, offices and public spaces have experienced a surge in demand, emphasizing the enduring value of essential services.

Moreover, healthcare-related franchises, including home healthcare, senior care and medical staffing services, have witnessed sustained growth. With an aging population and increasing emphasis on healthcare accessibility, these franchises are poised for further expansion in 2024 and beyond.

The resilience of essential services franchises underscores their ability to adapt to changing circumstances and meet evolving consumer needs, making them an attractive investment opportunity for entrepreneurs seeking stability in uncertain times.

Recurring-Revenue Franchises on the Rise

Franchises with recurring-revenue models have gained traction within the industry, offering a predictable stream of income for franchisees while fostering long-term customer relationships. These franchises, which often operate on subscription-based or membership models, encompass a diverse range of sectors, including fitness centers, meal delivery services and software solutions.

In 2024, recurring-revenue franchises are experiencing rapid growth as consumers increasingly prioritize convenience and value. Subscription-based services provide customers with hassle-free access to products and services while offering franchise owners a consistent revenue stream and enhanced customer retention.

“Subscription-based revenue is something of a holy grail in corporate finance, and for good reason,” wrote Greenberg. “Once someone signs up for a subscription, they’re very unlikely to cancel it. They become a source of long-term, guaranteed revenue for the business, making balance sheets stronger and more predictable.” 

Fitness franchises, in particular, have embraced recurring-revenue models, capitalizing on the growing demand for health and wellness offerings. By offering subscription-based memberships and personalized training programs, fitness franchises can cultivate loyal customer bases and drive sustainable growth.

The appeal of recurring-revenue franchises lies in their ability to generate steady income over time, reducing the reliance on one-time transactions and enhancing the overall stability of the business model.

Health and Wellness Brands Expand Their Reach

In an era marked by heightened health consciousness, health and wellness franchises are witnessing growth and expansion. From boutique fitness studios to holistic wellness centers, these franchises cater to a diverse array of consumer preferences, offering personalized solutions for physical, mental and emotional well-being.

In 2024, health and wellness brands are capitalizing on the growing demand for holistic health solutions, integrating innovative technologies and wellness trends into their offerings. Franchises specializing in mindfulness, meditation and stress management are gaining popularity as individuals seek respite from the pressures of modern living.

As entrepreneurs navigate the complexities of the franchising market, staying on top of these hot topics is essential for identifying lucrative investment opportunities and driving business success in the years ahead.

To learn more about franchising trends in 2024, check out these related articles: 

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• Best Franchise to Open in 2024: Taco Bell Tops The List
• 10 Franchise Brands Primed for Growth in 2024