Trend Predictions: Franchise Industry Will Continue to Grow
The nation’s job market will continue to struggle in 2012, opening more opportunities for former corporate executives and managers to reinvent their careers as franchise owners, say the franchise experts at FranNet.
FranNet, a national franchise consulting firm, works with a growing number of outplaced executives who are losing their corporate jobs. Many are considering franchise ownership as a career alternative.
“Since 2008, the franchise industry has been one of the few segments of the national economy that’s shown consistent growth,” said Jania Bailey, FranNet’s COO. “In 2012, many corporate workers who have been out of work for months will realize they are not going to replace that six-figure income and will research franchise ownership as their next career move.”
In 2011, 19,000 new franchise businesses opened; it was a record year for FranNet, which INC. Magazine listed as one of the fastest-growing U.S. companies.
FranNet’s 2012 trends for the franchise industry:
- Experienced workers will leverage their experience to manage and grow viable franchise opportunities, creating wealth and jobs, turning to franchise ownership as a viable option.
- Low-investment, service-based franchise brands with total investments under $150,000 will continue to grow.
Senior health care and other franchises that offer goods and services to the elderly will grow as more baby boomers hit retirement age.
- Family-run franchises, which already make up 25 percent of the new business FranNet helps establish, will remain popular as people open franchises to employ out-of-work spouses and adult children with poor career prospects.
- Franchises that help people extend the life of goods and do more with less will continue to thrive. Car repair, home improvement and refurbishing brands do well in an age when people would rather repair items than replace them with new ones.
- Financial institutions will continue to be tight-fisted with loans. Potential franchisees will rely on 401K rollovers and SBA loans from small banks.
“The coming year is pivotal for franchising,” Bailey said. “We’re becoming more realistic about the job market. Executives who have been sitting on the fence are going to consider franchising this year, and the franchise industry is going to be the big winner.”