With the new Trump administration in place, many in the franchising world have wondered how that will impact the U.S. franchise market. The fact that the franchising industry has grown by 10% over the past 10 years indicates that it’s not slowing down anytime soon.
Quick Service Leading the Pack
By far, the quick service food industry makes up the largest portion of overall franchises in the U.S., at 26% of all franchise businesses. This industry is doing wonders for the economy, too: 46% of franchising jobs come from quick service.
The biggest U.S. food franchises in the U.S. currently are Subway, McDonald’s, Dunkin’ Donuts, and Pizza Hut, each also having sizeable presence in foreign countries.
Surviving Difficult Times
While many small businesses shuttered during the economic recession a few years ago, franchises weren’t hit quite as hard as a whole. Fewer franchise jobs were lost than in other industries, and fewer franchisees closed their businesses.
Having survived — and for some franchises, even thrived — during an economic downturn gives many confidence that no matter what comes next for the economy, the industry will come out on top.
Not Competing with Small Businesses
While franchises might, at first glance, appear to be competing with independent small businesses, they often provide entrepreneurs with a healthy avenue to develop their business skills. With a built-in support network, franchises provide entrepreneurs with more resources to support success. And franchisors seek out that entrepreneurial mindset, as those tend to be the franchisees who work the hardest to thrive.
It’s also small businesses that often decide to franchise. When business owners can’t keep up with demand, franchising the business is an opportunity to not only serve a wider audience with their products or services, but also as the chance to capitalize on the business that they have built from the ground up.
Millennials Are a Hot Franchise Commodity
Millennials continue to be a driving force in the franchising industry. Becoming business owners with an out-of-the-box solution is appealing to the younger set, and their tech-savvy skills make them appealing to franchisors.
Multi-Unit Franchises are On the Rise
Another notable trend in franchising is the growth of multi-unit franchisees. As business owners get to know a given franchise system and begin to profit from it, more and more are opening up additional locations and expanding their reach. Franchisors benefit too, since they already know these franchisees are great at running a location.
Overall, franchising in the U.S. is prospering. Look for new industry trends, technology, and regulations to impact its future.
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.