The Future Looks Bright for Franchising. Here are 12 Reasons Why.
There has never been a better time to be in franchising! As 2023 approaches, I couldn’t be more excited about what’s ahead. I love being part of an industry that makes a difference every day. If you take a minute to think about all the lives franchising touches, it’s mind-boggling.
Consider this: In 2022, the International Franchise Association (IFA) estimated that 792,014 franchise establishments were responsible for almost 8.5 million jobs and $788 billion in output. Franchising’s impact is tremendous. Franchising brings communities together, helps people build generational wealth, and allows us to control our destinies.
While the numbers are impressive, there are even more reasons to be excited about franchising in 2023. Franchising offers a unique opportunity to be part of something bigger than yourself. Being part of this industry is empowering whether you’re a franchisee, franchisor, franchise consultant, or another franchise professional. Yes, the future of franchising is bright. Below are 12 reasons why 2023 will be the best year ever for franchising.
Why The Future Looks Bright for Franchising
1. Franchise Brands are Joining Forces
There is strength in numbers. In 2022, many brands joined forces and created new umbrella groups. The result? More professional franchise brands with stronger systems and support for franchisees. I predict 2023 will bring more of the same.
2. Franchising is Attracting More Professionals
Layoffs and the threat of recession are driving more c-suite employees to franchising. These folks have all the qualities of a successful franchise owner: They know how to lead teams, build relationships, and effectively communicate.
3. Franchise Consultants are Going Mainstream
Corporate refugees are moving into franchise consulting and adding more prestige to the profession. At one time, most people had never heard of franchise consultants, but now they are considered essential to franchise growth by most brands. Franchise consultants help hopeful entrepreneurs make the right decisions about investing in a franchise and help franchise brands grow and scale with the right candidates.
4. Private Equity Loves Franchising
Private equity knows a good thing when they see it. More and more franchise companies are receiving private equity investments to maintain sustainable growth.
5. There are More Ways to Get Together
Franchising is all about building relationships. Since the pandemic, clever franchise pros have come up with more and more ways to connect. 2023 promises to be an amazing year for events. In addition to face-to-face conferences, there will be engaging video conferences where you can learn and network – no travel required.
6. Innovations are Making Franchises Better
Innovation is at the heart of franchising. Even after the pandemic, brands continue to find new ways to streamline their systems, leverage technology to make the customer experience better, and use creative ways to market their brands.
7. Franchise Education is Growing
Colleges and universities are introducing franchising and entrepreneurship majors. This means more educated, qualified people in the industry.
8. The Industry is Prioritizing Inclusion
The International Franchise Association and the franchise community are making a huge effort with diversity and inclusion initiatives. In 2023, the franchise industry will attract more women, minorities, and members of the LGBTQ community.
9. There are More Franchise Opportunities in More Sectors
Franchising is not just about fast food and large investments anymore. There are new and exciting franchise brands popping up every day, many of which can be started from home with very low start-up costs.
10. There’s a Wealth of Information Available About Franchise Opportunities
Moving into 2023, we will find more ways to learn about franchise brands. Videos, testimonials, third-party validations, and comprehensive website tours of brands help candidates get to know the franchisor with the click of a button. Most of these resources can be found right on the franchisor’s social media pages and website.
11. You can Find More Disclosure Than Ever Before
Although Item 19 of the Franchise Disclosure Document is optional for franchisors, we are seeing more and more brands include Financial Performance Representations in their FDDs.
12. Franchising is Supported by the IFA
The International Franchise Association (IFA) works hard every day to advocate for and promote the industry. In 2022, IFA introduced its Open for Opportunity initiative, which promotes franchising and its benefits with a focus on inclusiveness.