What does the future of franchising look like? Bright, according to many market reports. This industry is growing fast and furiously with more franchisees owning several units, better technology getting incorporated into stores, and a new business model taking shape. Here’s a closer look.
More Multi-Unit Owners
What happens once you have mastered the tried and true formula franchises have designed for their franchisees? If you’re like many franchise owners, you start opening another location. And then another. By recreating your success in multiple locations, you can quickly grow your revenues and increase your business’s sustainability.
Enhanced Technology
It’s not a secret that technology is changing quickly but the franchise industry is struggling to keep up in many ways. For some franchisees who have owned and operated a business for several years, switching away from analog technology and over to the digital technology available feels like a step backward. For example, some franchisees feel more comfortable using a cash register rather than an updated point-of-sale model. Some restaurant owners prefer the standard menu boards in lieu of digital menu boards.
Still, the franchise industry is quickly realizing the importance of making this switch and now, franchisors are working methodically to update all of their franchise locations with updated technology. Most franchisors won’t force this technology on their franchisees but it will be strongly encouraged through a deployment stage on an incremental basis depending on cash flow and franchisee needs.
Business Within a Business
Imagine opening a UPS franchise in an established store with direct access to professionals who are already shopping, printing and taking care of other business needs. That’s the case for many UPS franchisees that take advantage of the non-traditional store-in-store approach by opening a location inside an existing office supply store, or other relevant business. These centers are located in large national and regional retail stores, which serves two purposes:
- It puts the UPS store front and center to more consumers;
- It makes shopping more convenient.
The approach is known as a business-within-a-business location and it’s not exclusive to UPS. Other franchisees have seen the benefit and are taking advantage of this new model, including people in the quick service restaurant industry who are opening stores in discount retail shops. The model is a win-win. Consumers win because they get instant access to the stores they need and franchisees win because they can tap into other businesses customer bases.
What’s Next?
As the franchise industry continues to heat up, changes are taking place to build stronger, more sustainable franchises. With new technology and new business models franchise owners are in a prime position to see tremendous success with this type of business.
Susan Guillory is the President of Egg Marketing & Communications, a marketing firm specializing in content writing and social media management. She’s written three business books, including How to Get More Customers With Press Releases, and frequently blogs about small business and marketing on sites including Forbes, AllBusiness, The Marketing Eggspert Blog, and Tweak Your Biz. Follow her on Twitter @eggmarketing.