Hottest Brand Sectors for 2015

1851 explores the most popular segments in franchising.

SPONSOREDUpdated 8:08AM • 02/11/15

Continued business momentum and increased economic activity will create conditions for yet another strong year of growth in the franchise sector in 2015. According to the Franchise Business Economic Outlook for 2015 by IHS Economics, the industry will once again accelerate past the overall economy, with GDP growth expected to improve by 3.1 percent in 2015. The number of franchise establishments in the U.S. is also predicted to increase by 1.6 percent in 2015, matching the pace of growth in 2014.

However, the franchise sector could be threatened by an unprecedented federal ruling. In 2014, the National Labor Relations Board ruled that McDonald’s is a “joint employer” with franchise owners and could be held responsible for human resources practices. According to a press release from the IFA, the ruling would lead to a cumulative cost of additional liabilities and litigation that would force many franchisors out of business and erode product quality.

While the possibility of an imploding market is an issue, it is not set in stone, and until doomsday arrives, here are the top six out of ten franchise types expected to see the most growth in new franchise units opened, according to IHS:

Personal Services (+1.9 percent) – Growing personal service franchises include hair salons, childcare, tutoring and spas, including Hand & Stone, which currently has 200-plus units across the nation and plans to add at least 50 more in 2015.

Lodging (+1.8 percent) – Although room rates are rising, it has not stopped travelers from taking a vacation. Holiday Inn, EconoLodge and even the Hilton are all franchises and are planning to develop exponentially this year.

Business Services (+1.7 percent) – This sector has a wide variety of services, including mail carriers such as UPS and FedEx. It also includes franchise consultants such as FranNet, who match entrepreneurs to different franchises.

Quick Service Restaurants (+1.6 percent) – Although the quick service restaurant sector adds the most number of jobs each year, it is surprisingly not the fastest growing as far as unit additions. Brands such as McDonald’s, Pita Pit and Checkers* will grow in 2015 as the fast-casual trend continues to upscale.

Retail Products & Services (+1.6 percent) – Retail products and services hit number five even as RadioShack files for bankruptcy and prepares to close. Other brands, including LensCrafters, Ace Hardware Corp. and Wireless Zone, will keep this sector in the top five this year.

Commercial & Residential Services (+1.6 percent) – Cleaning services such as JAN-PRO and Maid Right are some of the top expanding commercial and residential services today. Even without the flashiness seen in other industry sectors, cleaning franchises are essentially recession-proof, allowing them to expand rapidly with ease.

*This brand is a paid partner of 1851 Franchise. For more information on paid partnerships please click here.