Future of Franchising

Re: Future of Franchising

I think that franchising is only going to get bigger. More people will transition out of the corporate world and start a second career. Franchises have and will continue to be an important part of our ecomomy

Re: Future of Franchising

I thought you maybe interested in this information given your question:

Business consulting franchises offer business coaching to their clients to improve areas such as leadership, general management, growth development, finance, operations advertising, marketing and sales. The number of units in the business consulting sector grew 221% from 2002 to 2005, with two brands holding more than 50% of the total analyzed market of franchised units.

Interestingly, both sector-leaders use a secondary method of franchise development beyond selling individual franchised units. By reading this Comprehensive Industry Report, you can find out what these methods are and evaluate whether or not they should be incorporated into your business model.

This report provides a thorough description and comparison of 21 business consulting franchise systems and their 871 units, representative of the franchising general business coaching services sector. Detailed information and analysis are presented in tables and charts, which examine such key drivers as:

methods used by each franchisor to develop their system
unit performance in the sector and unit-growth trends
the different levels of franchisor support offered to franchisees
financial performance of the franchisors based on audited financial statements
royalty rates, which range from 1.5% to 70% of gross sales
initial fees, marketing requirements, territory terms, and more!
This report is a must-read for franchisors, prospective franchisees, and anyone else who needs to understand the individual and collective performance in this growing sector.

Re: Future of Franchising

Wow I did not realize the franchise industry was growing so rapidly thanks for the info

Re: Future of Franchising

My prediction is that franchising will continue to grow but there will be more competition less good ideas which will lead to lower royalties and other related payments which will be good for the franchisee but not for the franchisor.

Re: Future of Franchising

I think it will continue to grow but as a result of its growth and competition, many will fail.