Becoming a business owner is a big step for anyone. Fortunately, franchises provide a proven model that if followed correctly, will increase the likelihood of success. But before deciding to take the leap into entrepreneurism, budding franchisees should consider what options are available.
With categories ranging from hair salons and pet stores to senior care and sub shops, there’s a franchise concept for nearly everyone. However, learning what makes a franchise hot could be beneficial when deciding to enter the industry.
, a FranNet franchising consultant in Illinois, said there are a few things to consider when forecasting the climate of a hot franchise segment.
“First and foremost, a product or service should have a differentiating purpose,” Back said. “There are a lot of franchisors in every category, but the ones who seem to thrive, especially the new or hot franchisors, have a differentiating need, and a very authentic brand position and brand personality. They need to separate themselves from the pack.”
Another important aspect to determining a trending segment is the franchisor’s history. Back said it’s important the franchisor has demonstrated a track record of industry success because it likely means a sound infrastructure is in place.
, an industry leader in franchise consulting services, is diligent when vetting potential franchisor clients. FranNet looks into the each company’s history regarding financials, executive leadership and franchisee testimonials to name a few. Back said FranNet is a safety net for prospective franchisees.
“We provide expert insights based on our industry experience so candidates don’t have to worry whether or not the franchise will be there tomorrow,” he said. “We have insight into what concepts are a good fit for franchisees, and which brands are most stable and what’s popular among consumers.”
Back suggests there are many intriguing franchise options gaining popularity, such as those in the fitness category. There are a number of new and affordable brands being introduced by franchisors with a proven track record. Another interesting segment is experiential education and entertainment. Back said companies and new franchisors are introducing entertainment and party planning for kids and adults, providing experiences for everything from birthday parties to professional events.
Also, as more and more companies look to sell their products via the online marketplace, some franchise brands are now experimenting with office-sharing or retail space-sharing opportunities. Back said many retailers are looking for cost efficient leasing options.
And of course, a couple segments that are always popular is food with a twist
, senior services
and staffing. So while there may be a number of hot segments worth exploring, new franchisees should consider all options and research thoroughly before investing because there really is something for everyone.