The Future of Franchising
Over the past few years, franchising has steadily increased in popularity to the point where it has become the next logical move for businesses interested in expanding. This can be attributed to the inherent opportunity of the franchising concept; it is specifically designed to offer aspiring business owners the chance to succeed without a large amount of risk. As time moves forward and franchising continues to evolve, a host of new developments are bound to take place that will perpetuate the industry in a very beneficial way. For instance, estimates state that franchising has the potential to comprise over 50% of the retail economy, providing millions of people with jobs and giving the next generation of franchise leaders the chance to come up with new and revolutionary franchising concepts. With this in mind, the future of franchising is promising. Specifically, experts say that there are a few key trends we can expect to see within the next few years.
Increased Franchising Popularity
Franchising is one of the most effective ways for a business to safely expand into new markets and locations, bringing with it the potential for more success than staying in just one location could ever provide. As more companies become aware of its benefits, predictions state that they will begin to pursue more serious franchising opportunities. These companies can range from company-owned stores to restaurants, but corporations in particular are expected to make the transition into franchising in an effort to keep their best employees. It is not a secret that the present economic climate has resulted in a number of individuals losing their jobs; with franchising, a company’s best talents and brains can become franchised business owners and continue to benefit the longevity of the company.
International Franchising Boom
A current trend that is expected to continue to increase is the act of American companies using the benefits of franchising to expand overseas. A prime example of this movement is Starbucks – Howard Shultz, U.S. company Chairman, announced wanting more than 20,000 shops with half residing in North America and the other half in other parts of the world. International franchising is the perfect option for businesses interested in large-scale expansion; since the U.S. cannot be expected to accommodate as many shops as 20,000, expanding overseas makes sense for business owners who wish to franchise to their fullest capacities. As time progresses, more companies are expected to follow in the steps of Starbucks and franchise out into other countries.
The future of franchising is largely tied into the current technology boom. With the Internet steadily becoming a more integrated part of everyday life, franchises are predicted to adjust accordingly. For instance, e-commerce is expected to increase in popularity, the successes of which can be illustrated with Domino’s online ordering campaign. The pizza company’s online ordering option was embraced at an early stage of e-commerce, allowing Domino’s to earn a reputation as one of the primary food delivery brands today. Following with this example, e-commerce – whether it is through online food delivery options or through online shopping in general – will become more popular amongst franchises because of the ease of access it offers to consumers in a technological world. Franchising is understood to be one of the most effective ways for successful businesses to expand into new locations. As the decade continues, the expectations for its future are very high thanks to an increase in its popularity, continued international expansion, and the development of Internet options for consumers worldwide.