Franchise Industry Trends for 2020 and Beyond
This is my favorite time of year, because we get to start a new chapter in our story. It’s not just a new year; it’s a new decade! Everyone want to know what the next hot concept will be, so here’s a snapshot of industries on a strong growth trajectory that still have a lot of room for great owners.
Industries to Consider
A frequent question I get is, “What franchises are out there besides fast food?” The answer is a lot – there are so many fantastic franchises that have nothing to do with food, and they’re part of the biggest trend in the industry. Here’s four of the fastest growing trends in franchising:
1. Health and fitness: Have you noticed how many new boutique fitness locations are coming up? If you haven’t joined one yet, you’re missing out! Rather than fighting for the rowing machine at the “everything to everyone” mega gyms, thousands of people turning to niche workouts. They typically offer a more customized experienced with semi-private classes and instruction. Everything is more personalized and clients joining boutiques rave about the focus, guidance and results. This trend is poised for significant growth in 2020.
2. Beauty: Much like boutique fitness, specialized beauty options are growing just as quickly. Gone are the days of choosing between an overpriced salon spa or a sanitation-challenged nail/wax/massage/lash shop. Now, customers can get their beauty routine done by boutiques that specialize in one thing. The concepts that are flourishing do one thing and do it well with prices below the large spas. The trend is set to explode in 2020, and you can expect to see new household brands emerging.
3. Home Services: Finding someone to take care of your home repair, maintenance and improvement is a tough job. While finding someone experienced is easy enough, many lack the business skills to operate, and customers are frustrated. Enter the home services franchises. They streamline processes and make it easy for customers to do business with them. You name it, there’s likely a franchise model that does it. This industry is capitalizing on existing demand by providing a superior experience including better service, easier scheduling and professionalism often lacking.
4. Children’s Services: I am a mom of two, auntie of 14, and great auntie of one more. I’ve seen a lot of ways we can spend money on our kids to keep them happy, healthy and growing. The child-focused franchise companies have seen it, too, and they’re positioned to capitalize on it. From infant to teen, recreation to education, there’s a business model to serve the needs and wants of every kid and it’s growing like gangbusters. I expect this segment to be on a positive growth trajectory well beyond 2020.
You Don’t Need Millions
If you think the only way to start a franchise is to be independently wealthy already, I have good news. You don’t need a million dollars or more to start. The trending industries tend to be at the lower end of the investment range, and a long way from the million-dollar mark. There’s a huge and growing trend for service-based franchises, some of which can be operated from home and require an investment under $100,000. While the mega gyms often cost eight figures, small retail locations like boutique fitness and beauty start around $250,000 to $500,000. Most candidates can use funding options like Rollovers for Business Startups (ROBS) or an SBA loan, and there are companies specializing in funding exclusively for franchises. While funding a lucrative franchise used to be a challenge for most people, it’s never been easier.
How Are You Trending?
There will always be trends in business and life, but what’s most important is how they work for you. We can help you identify what you want in life and if business ownership is a vehicle to reach your destination. Don’t let another year or decade slip away. Find out today if franchise ownership is a good option for you. Contact us for the free Career Transition Guide ebook.
Contact us or schedule an appointment for a free, personalized consultation.
Jessica Houston, Franchise Consultant