As Franchise Industry Outpaces the Rest of U.S. Economy, FranNet Enters 2017 On High Note

From workout facilities and housekeeping companies, to child care centers and pest control services, there’s likely a franchise located on any Main Street in America. That’s because today, there are nearly 800,000 franchise establishments representing 300 lines of business. Together, these businesses support more than 9.1 million direct jobs and generate in excess of $944 billion in economic output.

But as the franchising industry continues to grow, navigating the thousands of franchise opportunities has become increasingly overwhelming. That’s why, for 30 years, FranNet has helped individuals find their right franchise match through one-on-one consultations. On average, the company is likely overseeing the opening of about two franchise businesses every single day somewhere in the country. With nearly 120 consultants throughout the world, FranNet’s efforts helped support the creation of nearly 6,000 jobs in 2016 alone.

“Every day, we’re helping more people find their way as business owners in their communities through the power of franchising. Because we are able to carefully coach them toward the next step of their career, our success rate has far out-performed national averages of independent small business openings,” said FranNet CEO Jania Bailey. “Constantly working with local entrepreneurs and offering a variety of franchise businesses to our clients helped make our historic 2016 possible. We plan to continue this momentum with a strong 2017.”

In 2017, the company’s leadership expects to see a continued increase in women and millennials investing in the franchising industry. FranNet’s data shows that since 2011, female ownership has risen as much as 71 percent, with overall ownership in franchising up 33 percent. FranNet also found that younger people are buying franchises, with data showing that franchise purchasing grew by 89 percent amongst people in the 30 to 39-year-old age range. Ownership for 20 to 29-year-olds was up 120 percent.

“Ten years ago, you would be hard-pressed to find anyone in the franchising industry who thought people in their 20s or early 30s were prime franchisee candidates. For the most part, franchise ownership has been reserved for a small demographic of high-net-worth individuals or executives from corporate America with the desire to go out on their own. But the face of franchising is changing,” Bailey said. “Millennials have a strong desire to innovate, to be entrepreneurs, and to be their own bosses. But because of high real estate and startup costs, it’s hard to start an independent business. Millennials are looking for alternatives. That’s where franchising fits in.”

As far as choosing the best segments to consider in 2017, FranNet forecasts a promising outlook for fitness and health, salons, light manufacturing, commercial cleaning and hair care sectors—all of which have experienced steady growth over the past year. These sectors also offer semi-absentee ownership options—another trend that’s picking up steam in the franchise industry.

“The franchising industry is in a great place right now. The economy is getting better, and people have more and more options. Whether you’re a semi-absentee or full-time operator, a first-time franchisee or experienced multi-unit operator, FranNet is excited to continue making franchise ownership a possibility for eager entrepreneurs all over the world,” Bailey said.