Start A Franchise: Franchise Industry Research
The Franchise Industry has experienced three of the highest growth years in one term the industry has ever seen. This growth is due in part to the recovery from the 2008-2011 recession every market around the world experienced, but there are also industry trends in place that are driving this exponential growth in the franchise market place.
Here are some key findings from the business outlook:
Franchise businesses are adding more new direct jobs every year percentage wise than the rest of the economy when looking at the U.S. franchise market specifically. There are more franchise brands entering the market every year than ever experienced before in the franchise industry. GDP from the franchise market specifically is increasing at a higher rate over these past three years that the overall economy growth.
All of these facts point to one obvious element, the franchise industry is growing and the franchise growth vehicle is continually an increasingly valuable expansion tool for businesses and effective investment vehicle for franchisees to build their own businesses.
There could be many reasons behind this, but we see the following trainings from our work as franchise consultants working with a wide variety of industry segments.
1. The job market has improved dramatically from the recession, but there is still a high degree of underemployment of lack of high paying full time employment opportunity (declining middle class). Less high paying jobs pushes more highly qualified buyers into the franchise market.
2. Entrepreneurship is seen as high risk and difficult to make work, in particular for a first time business owner. When you franchise a business, your success rate is significantly higher than a new business start up.
3. People appreciate and buy from brands, they want to trust who they are working with – franchising expands on a brands capability to not only reach the customer, but also to advertise and promote effectively to convince customers they are trustworthy.
4. Economies of scale are more important than ever before from both a branding standpoint and purchasing ability, franchising answers this dilemma for a business owner.
This infographic provides some great detail speaking to these trends specifically:
For more information about starting a franchise and franchise industry research, contact us: firstname.lastname@example.org