Emerging trends in franchising

As we reflect on another year, let's consider the emerging trends that are likely to influence future outcomes. Understanding these trends can help existing franchisees make effective decisions to keep their businesses not only surviving but thriving while guiding aspiring franchisees toward the right opportunity for them.

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Sustainability

Sustainability has been a key focus for many businesses this year. Many have reduced or eliminated single-use plastics from their products and packaging, upgraded to environmentally conscious products, shortened supply chains and sought ways of offsetting the carbon generated by their operations. This trend will only continue to grow as consumers become more invested in playing their part in protecting our planet. Businesses that want to preserve or strengthen their reputation will need to conform and embrace this emerging trend if they want to retain and grow their customer base.

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Technology

Being tech-savvy is no longer optional. To reduce costs and improve efficiency, franchises of all sizes are embracing automation. Mobile apps are becoming commonplace, chatbots offer first-line customer service support, and most fast food franchises now rely heavily on ordering kiosks, freeing up human operators to prepare and serve food rather than handling customer interactions. Embracing technological innovations will be important in the future for delivering seamless service and reducing operating costs.

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Wellbeing

Demand this year has soared for businesses offering health and wellbeing products and services. Modern consumers have proven that they are willing to invest in their mental and physical health, so this industry sector is likely to continue to grow as we make our way into 2025.

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Micro-franchising

New business models have emerged this year, with a trend toward low initial investment costs and rapid growth proving to be quite popular with new franchisees. Home-based and mobile businesses have eliminated the need to lease or buy a physical property, while delivering personalized experiences is enhancing customer satisfaction and strengthening their loyalty to the brand.

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Franchisee support

Franchisors have recognized the importance of developing a strong support network for their franchisees, helping them make the most of their business venture while giving them appropriate training, access to mental health resources and a connected network that helps them feel like part of the organization as a whole. This new push for inclusivity is resulting in greater productivity, innovation and retention rates, so robust franchisor support arrangements are likely to become commonplace over the next 12 months.