Exploring the Industry: Sector-Specific Franchise Research

Franchises come in all shapes and sizes. One of the first steps in the franchise process is determining what industry to go into.

If you’re wondering where to begin in your research process, 1851 has you covered. Below, we highlight the essential considerations and steps to navigate this intricate landscape successfully. 

Where to Begin When Exploring Industries

When it comes to exploring potential franchises, many aspiring entrepreneurs tend to fixate on their industry backgrounds. This is a natural inclination, especially for those who've spent considerable time in the corporate world. In traditional job searches, one's industry expertise often defines them, and the longer you stay in a particular sector, the harder it can be to break free from its gravitational pull. However, the franchising landscape operates on a different set of principles, according to Tim Parmeter, founder and CEO of FranCoach, a franchise consulting company. 

“Franchisors don't care what somebody's industry background is,” he said. “They don't want them to be the doer. They're looking for owners. So it's more their true skill set and core values that matter. What are they good at? I don't want to say the industry is insignificant, but it's not the driving force like it is in the corporate world. Franchising can be this blank slate where any industry could be a potential match for them.” 

How to Start Researching

With that said, the first step in researching franchise opportunities is to shift your focus from industry to yourself. Ultimately, you are the one who will get out of bed each day to run your franchise. What are you genuinely good at? What do you want to do? What kind of people do you want to interact with — your staff, customers and the community? These factors should guide your decision-making process. Industry does factor in, but your personal attributes and motivations are the primary drivers.

Franchise consultants can also be a great resource for exploring your options. For example Parmeter noted that he starts by asking people what they definitely want no part of and what they have an interest in. 

“It's about reverse engineering,” he added. “The franchisor that ends up being the best match is rarely what people think it's going to be. It's like dating; we want to find that long-term partnership that's mutually beneficial for both sides."

Examining Market Trends

Market trends are an essential consideration when exploring franchise opportunities, but their significance varies from person to person. Some individuals prioritize recession-resistant businesses that cater to basic and enduring needs. Others are drawn to the excitement of emerging trends and new markets.

The choice largely depends on your personal inclination. Do you prefer stable, evergreen industries, or are you more interested in being on the cutting edge of market innovation? For instance, industries related to health and wellness often introduce new and trendy concepts while needs-based home services options might be more stable. 

“At the core, what is your gut telling you?” said Parmeter. “Once you narrow that down, then it's being able to, with the franchise, dive into all of their market analysis on demographics, how you build out a territory, find locations — all of those types of things. But again, it's really more about where on that spectrum do you fall, and then you'll be able to find the franchise from there.” 

Once you've determined your preference, you can delve deeper into franchise opportunities and assess their market analysis, demographics, territory development and location options. Remember that this decision is highly individual, and there's no one-size-fits-all answer.