Emerging trends in Franchising
The evolution of franchising has peen punctuated by instances which have acted as a catalyst in the growth of the industry. First, it was the auto-mobile revolution, then the tele-communication and then finally the internet. So what is it now? So what are the new trends in franchising, which will shape the future? We give a quick lowdown on the new and emerging trends in the world of franchising
The few emerging trends are
• Increasing use of the internet The use of the internet as a tool for business development has increased greatly. Not only is it being used to sell directly to the consumers it is also being used extensively to select new franchisees. In some developed markets, franchisors are almost spending 50% of their recruitment budgets on the internet. The internet is also proving to be a great tool for increasing visibility and awareness which will lead to long term brand building.
• Consultancy firms The other emerging trend is the emergence of consultancy firms for recruiting the right franchisees. More and more franchisors as well as franchisees are taking help of these consultancy firms to select the right franchisee and the right franchisor respectively. These firms operate on a commission basis and are proving to be highly beneficial as they save precious time for both the parties and also try and iron out irregularities.
• Multi-unit franchising More and more franchisors are resorting to selling multi-unit franchisees. It has also been noted that more and more franchisees have started owning franchise of more than one brand. This trend is healthy because it will ensure greater commitment from the franchisee. Also having multiple units reduces the risk of closure due to failure of one unit.
• Low cost, Low-risk Franchise More and more businesses are offering low cost and low risk franchises. As competition increases this is bound to happen. Also as time goes by, this segment will grow by leaps and bound’s as people look for risk free options.
These are some of the latest trends in the ever evolving franchise industry.