bannerFranchise News

The 3 Hottest Service Franchise Categories Right Now

The service segment remains a thriving industry, and these categories are positioned for major success in the years to come.

In today’s post-peak-pandemic landscape, the services industry is set to dominate the economy, with people increasingly moving away from brick-and-mortar retail shopping. And for those entrepreneurs looking to get a piece of the action, franchising encompasses nearly every service category imaginable. Whether it be tutoring or day care centers, in-home senior care or youth sports programs, prospects have a dizzying array of concepts to choose from.

Here are three of the hottest service franchise categories to invest in right now.

Senior Care Services

The senior population is increasing rapidly in the United States — a so-called “silver tsunami” of Baby Boomers is already hitting retirement age. By the year 2030, AARP reports around 20% of the population will be 65 years old or older. As the population grows, the need for high-quality senior care has been exploding in the U.S., exacerbated by the COVID-19 pandemic, which further emphasized the importance of keeping the older population safe and healthy.

When it comes to the senior care sector of the franchise industry, there are many different types of franchise businesses, including everything from medical care to handyman services. Perhaps one of the most increasingly popular types of concepts within the industry is the home care segment.

According to the National Council on Aging, 90% of seniors say they plan to remain in their homes for the next 5–10 years, and the Family Caregiver Alliance (FCA) has reported there will be 27 million people in need of long-term care by the year 2050, double the number who required these services in 2000. Following the COVID-19 pandemic, this need has only become more and more relevant, with experts predicting the home care industry will be worth a whopping ??$225 billion by 2024.

Home Services

If the past two years have taught us anything, it is that the $500 billion home improvement industry will never go out of style. After the COVID-19 pandemic compelled people to stay at home and notice all the flaws and imperfections of their houses, the home services industry exploded in popularity. According to a Nerdwallet survey, three in five homeowners, or 61%, have taken on home improvement projects since March 1, 2020. On average, these homeowners spent $6,438 on those jobs. And the home improvement industry was already growing six percent annually even before the pandemic.

Additionally, with the influx of home sales across the country, both buyers and sellers are looking to spend money on improvements, whether it be remodeling, painting, lawn care, window care or pest control. 

Best of all, the home services industry increasingly presents prospective franchisees with a low cost of entry, simple operations with low staffing requirements, no need for a brick-and-mortar site, and a manageable work-life balance. 

Childcare and Education Services

There are about 74 million children under the age of 18 in the U.S., and in an era where parents are spending massive amounts of money on their children’s health, education and overall wellbeing, the children’s services segment represents a near recession-proof opportunity. Increasingly shrinking school budgets are pushing parents to look elsewhere for supplemental education opportunities, access to the arts and other opportunities to be active and gain valuable skills through ancillary businesses.

Plus, throughout COVID-19, more than 97% of educators reported some sort of learning loss in their students compared to previous years. In efforts to bridge the learning loss gap, McKinsey & Company suggests 50 minutes of tutoring a day. With the unparalleled demand for tutors, franchisees have the chance to step up in their communities and help students grow more confident in the classroom.

Children’s services franchise concepts can include everything from education centers to youth sports programs. While cost of entry will range significantly depending on the concept, the category itself is sure to offer plenty of demand and a meaningful, enriching experience.