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How has franchising evolved over the years and what new trends should entrepreneurs look out for?

Kiel Obert

Franchising has come a long way over the years and has become increasingly popular among entrepreneurs. The rise of franchising can be traced back to the 1950s, when fast food giant McDonald's began offering franchise opportunities to entrepreneurs who wanted to start their own business.

Since then, franchising has evolved in many ways. Today, there are more than 800,000 franchise establishments across America and the industry generates over $450 billion annually. In fact, according to the International Franchise Association, franchising is expected to grow at a rate of 4.8% this year, outpacing the overall U.S. economy.

One trend that entrepreneurs should be aware of is the increasing popularity of non-traditional franchise models. In the past, most franchises were brick-and-mortar locations like restaurants or retail stores. However, today's entrepreneurs are increasingly turning to non-traditional models like mobile units, kiosks, and home-based businesses.

Another trend to watch out for is the rise of international franchising. As more and more brands expand globally, franchising has become an attractive way to break into new markets. In fact, the International Franchise Association reports that 98% of franchise systems in the U.S. have international operations.

Similarly, multigenerational franchising is also on the rise. With many baby boomers looking to retire, they are passing on their franchise businesses to their children or grandchildren. This allows the younger generation to carry on the family legacy while also providing them with a turnkey business opportunity.

Finally, technology is also transforming the way franchising works. From online ordering systems to mobile payment platforms, technology is making it easier than ever for franchisees to run their businesses. Additionally, social media is playing an increasingly important role in franchising, allowing brands to connect with customers in new and innovative ways.

In conclusion, franchising has come a long way over the years and is a growing and dynamic industry. Entrepreneurs should keep an eye on new trends in the industry, such as non-traditional franchise models, international franchising, multigenerational franchising, and the impact of technology. By staying up-to-date with these trends, entrepreneurs can position themselves for success in the exciting world of franchising.