An entrepreneur with a fresh and successful idea might consider establishing a franchise, but it’s not always the best move. To give them confidence in their decision, they’ll want to consider an industry which is already showing success with the franchise model.
There are a number of industries and focuses that lend themselves well to this particular business model, but below, the members of Young Entrepreneur Council share nine industries that they think entrepreneurs would do well to think more about and why.
Fitness currently lends itself well to franchising, especially high-ticket, niche fitness opportunities like resistance training. The profit margins are healthy and fitness is an evergreen industry that will always have demand. Similarly, niche fitness opportunities are booming right now, with more consumers than ever flocking to unique fitness opportunities. – Jared Weitz, United Capital Source Inc.
2. Child Care
If you love kids, child care is one of the most profitable and fun domains to get into, as this is an evergreen sector. The increase in dual-income households has led to a massive demand for day care services where kids are cared for and looked after daily. Parents are usually highly invested in their kids, so this is a risk-free domain. More and more families need these specialist services—especially during their working hours—and are willing to invest, despite economic recessions or uncertainty. Child care services may also vary from infants to school-age children. Also, there is a heightened interest in early childhood education, so the demand for these services has always remained high. – Brian David Crane, Spread Great Ideas
3. Coffee Shops
In the current market, one industry that has a lot of potential for franchising is the breakfast segment of the food and beverage industry. Coffee shops are popular in cities around the globe as they provide customers with quick, convenient coffee beverages and breakfast options so people can have great coffee on the go. Fine dining may be somewhat affected by ongoing inflation, and people may not be keen on eating out. But for the average American, coffee isn’t just a beverage—it is a habit. People still want to get their coffee and breakfast inexpensively and on their way to work, especially in drive-thru cafes. The coffee franchises can often provide customers with experiences they already know and trust, like for frequent travelers looking for familiar names when away from home. – Tonika Bruce, Lead Nicely, Inc.
MORE FOR YOU
The tech industry is an excellent example of a focus that lends itself well to franchising. There are plenty of possibilities in this field, depending on your interests. You could sell your own tech, fix existing tools or act as a consultant and help users find the best tools for their situation. The main reason the tech industry is a great choice is because it’s still growing. We all have at least one piece of technology that we need for day-to-day work. Most of us have far more than one thing we need. A business focusing on this field would do well in virtually every country on earth. – Chris Christoff, MonsterInsights
5. Auto Repair
One industry or focus that currently lends itself well to franchising is auto repair. Auto repair is one of the more successful focus areas in the service industry due to high demand and low barriers to entry, which makes it an ideal choice for aspiring entrepreneurs. Not only do the franchisees benefit from the training and support offered by their respective franchisors, but they can also leverage their reputation in the industry. Due to the technical aspect of the services involved, customers are less likely to switch from their preferred auto repair service providers, which makes it a stable business opportunity for new entrepreneurs to consider. – Stephanie Wells, Formidable Forms
6. Senior Care
With a standardized business model and a growing demand for services, the senior care sector is a promising area to establish a franchise. As the population ages, there is an increasing demand for in-home and community-based senior care services. Franchising can provide a cost-effective way for senior care brands to expand their services and reach new markets. By partnering with franchisees who have local market knowledge and expertise in providing senior care, brands can offer more personalized and culturally-sensitive care to their clients. Franchisees can benefit from established best practices and systems, which can improve operational efficiency and profitability. – Devesh Dwivedi, Devesh Dwivedi
7. Pet Services
If you’re looking for a niche industry, pet services may be the way to go. Pet-related franchises are on the rise due to pet owners’ increased demand for convenient, quality services. This can include grooming and boarding services, pet day care and pet products retailers. By franchising in this industry, you can take advantage of an already established customer base while still having the freedom to customize their offerings to meet local needs. – Blair Williams, MemberPress
As the e-learning industry expands, there are more opportunities to create franchises for companies that offer innovative educational resources. This covers a large number of categories, such as programming and other tech skills, teaching English and other languages, tutoring, skills for businesses and entrepreneurs (HubSpot is a good example of this), health and fitness information and more. E-learning franchises have certain advantages over the brick-and-mortar variety, with lower startup costs, the ability to reach a wider audience (global in some cases) and the ability to provide the latest technology so learners can access lessons from any device. – Kalin Kassabov, ProTexting
9. Cloud Kitchens
One specific area that lends itself well to franchising is the cloud kitchen setup. Traditional restaurants require a lot of capital investment in terms of rent, staff, food supplies and more, but cloud kitchens don’t have the same issue because they do not need to hire servers or maintain a live seating area. Franchise owners can benefit from an established set of dishes, procedures, equipment and workflows while keeping other costs down. And delivery will be handled by a food delivery app. This is especially great for individuals and small-business owners who can’t carry a lot of risks but still want to break into the food and catering industry. – Syed Balkhi, WPBeginner