With the onset of the global pandemic in 2019, franchise businesses have faced significant challenges through the years 2020 and 2021. 2022 has been fairly fruitful for the industry. According to a survey conducted by FRAN data, there was a growth of 3.5 percent predicted for the number of franchised establishments in the U.S., by the end of 2021. There was an influx of candidates looking for franchising, as a result of layoffs and furloughs, and “the Great Resignation”. “About 4.4 million Americans quit their jobs in September 2021 alone”, states the Wall Street Journal.
With so many major changes, 2022 brought back the lost hope of the business fraternity to a great extent. Here are the top trends in Franchising for the year 2022:
- Gen-Z Take Over
One of the most entrepreneurial of all generations is Gen-Z. According to Nielsen’s Study, nearly about 54 percent of the Gen-Z population confirmed that they wanted to start their own enterprise. Franchising is a fascinating option for the young crowd.
Technology and automation are driving the business world. Covid-19 has brought us light years ahead of where we were in terms of technology. Virtual meetings and workspaces may never replace in-person offices, but they sure have made remote handling of businesses much more efficient and cost-effective too.
In lieu of COVID-19 social distancing restrictions, many businesses, for example, restaurant businesses went ‘touchless ordering’ and services. With the huge success of technology in building up the structure of businesses, franchisors are keen to invest in technology and subsequently make it a tech-friendly environment for the employee as well. This in turn projects the brand values and brand identity. Franchisees look forward to associating with brands that seem swift to work with.
3. Franchise Consultants
As the franchise industry is making huge signs of progress, franchise consulting has become a rewarding career path. Franchisors are relying on these professional matchmakers to acquire well-suited candidates for franchisees. The pool of franchise candidates is growing with the efforts of the consultants.
4. Umbrella Franchisors
Out of the lot, many franchises have resorted to alliances in franchises and a number of umbrella franchisors. The trend of acquiring the parent franchise is a potentially smart way to share resources, sell franchises and share profits. Franchise Sales Organisations FSO are becoming larger and more standardized. These FSOs help evolve, emerging brands and franchises to prosper and find a better candidate pool for franchising.
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