Happy 2024, friends! As we begin a new year, it’s an exciting time to look ahead. Last year was a great year for franchising, and I think this year will be even better. If you’re thinking about making the leap to entrepreneurship this year, you’ve got a lot of amazing options in front of you. Based on mine and Lauri’s 10-plus years of franchise experience, here are the 2024 franchise trends most worth watching out for.
Executive Franchises
Many different types of franchises can be run as executive franchises. This franchise type is less about the specific business focus and more about the key benefits of executive franchise ownership: the ability to earn a full-time income and build wealth with just part-time work, empowerment to pursue what really matters to you, and a long-term retirement plan that keeps you active and engaged.
We’ve seen an uptick in interest in executive franchises over the last several years, as the pandemic and other crises have prompted people to reconsider their priorities, and we believe this trend is only going to continue. Corporate executives are second-guessing whether having that CXO or EVP title is worth the stress and long hours, especially when they can make just as much money while enjoying the benefits listed above.
Executive-to-Entrepreneur Transitions
Of all the 2024 franchise trends on our list, this is probably the one we feel most strongly about. Especially following 2023’s layoffs, which reached into sectors and jobs that everyone thought were secure, we’re seeing an influx of inquiries from executives looking for a better way to balance life and work. Our colleagues in the franchise industry are seeing the same.
But layoffs aren’t the only driving force here. Many executives are just tired of putting in 60-plus-hour weeks, missing family events, and traveling from meeting to meeting in order to pad someone else’s bottom line. Or they feel the specter of ageism looking over their shoulders. Expertise is expensive, and many companies will use the cost of an experienced director’s paycheck as an excuse to install a younger manager in the corner office.
Our advice: bring your balance sheet and your experience to franchising, where they’ll be appreciated by franchisors and where both will benefit your business, you, and your family.
Recurring-Revenue Franchises
Thanks to smartphone apps, streaming services, SaaS platforms, and more, we live in a subscription-based society. In fact, the average person maintains 12 subscriptions for media and entertainment alone! Subscription-based revenue is something of a holy grail in corporate finance, and for good reason. Once someone signs up for a subscription, they’re very unlikely to cancel it. They become a source of long-term, guaranteed revenue for the business, making balance sheets stronger and more predictable.
It’s probably not surprising, then, that we’re seeing a trend toward franchises with subscription-based offerings. We’re also seeing more franchises with multi-pack service offerings–a way to capture more revenue up front. You can find these franchises in a wide range of sectors, including fitness, beauty, home maintenance, tutoring, wellness, and more.
Self-Care
Last year at this time, I predicted that self-care franchises would be a hot commodity in 2023, and boy, was I on the money! We not only saw significant growth in existing self-care franchise brands, but we also saw the launch of a number of new self-care brands that are going strong.
There’s no reason to think this trend will slow down in 2024. In fact, I expect it to accelerate. According to a large-scale survey, consumers see self-care as an essential spending category, alongside groceries and basic household supplies. Thanks to a robust national conversation around mental health, nutrition, and other aspects of wellness, this is a promising franchise sector for new entrepreurs.
Essential Services
This is part of our 2024 franchise trends list, but it’s really a pattern that you’ll see in the franchise industry every year. Regardless of the economy or cultural waves, franchises that offer essential services will continue to be a popular investment, and for good reason. The clue, after all, is right in the name. These franchises offer services that people can’t do without: automotive repair, health care, disaster remediation, and the like.
Because these franchises provide necessary assistance, both individual businesses and the sector as a whole tend to grow steadily. Many options in this group, such as cleaning franchises, also have low startup costs or can easily start small and grow as resources allow. These characteristics make them ideal for people with less business experience or less money to invest on the front end.
But whatever your experience level or nest egg, Lauri and I are here to help you find the franchise that’s right for you and your family. Best of all, our services are always free to the franchisee. Book a 20-minute call with one of us today to start the conversation about where you want to go in 2024!
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