The Future of Franchising: Trends and Predictions for the Industry

What to Expect From the Franchise Industry in 10 Years

Between advancements in technology and digital marketing tools plus rapidly changing consumer behaviour, the franchise industry along with the way that franchisees run their businesses has evolved dramatically over the past decade.

Now, with the rise of social media, artificial intelligence, and inflation, the future of franchising can be hard to predict. However, there are five key trends that we anticipate will be making big waves in the world of franchising over the next decade. Keep reading to find out what they are.

The Current State of the Franchise Industry

According to a recent report from the International Franchise Association, the franchise industry is currently growing at a massive rate. The report found that 22,000 new franchise establishments have already opened their doors in 2023. This is an increase of 2.6% compared to 2022.

Additionally, there are five specific categories of franchises that are expected to experience a huge boom in 2023 and beyond. This includes:

Beauty, wellness, and fitness services
Electronics and gaming sales and repairs
Pet grooming, boarding, and training services
Home healthcare and senior care services
Home repair, renovations, and maintenance

As franchising continues to increase in popularity and the economy begins to stabilize, we predict that over the next few years, more and more people will be opening their own franchises that fall under the above categories.

Franchise Trends and Predictions

With any industry, trends come and go. However, that’s not to say that these trends won’t have a significant impact and carry weight for business owners.

Below, we have listed some of the biggest trends that have popped up across the franchise industry in 2023 that we believe will continue to grow in popularity over the next several years.

Artificial Intelligence

It’s no secret that AI is everywhere these days and is making a huge splash in the business world.

In the franchise industry, franchisees looking to stay current and keep up with technology can easily utilize AI to benefit the business in a lot of different ways.

Here are just a few ways you can use AI tools to help your franchise succeed:

Predict future sales and revenue
Improve the efficiency of your operations with AI-powered inventory management systems
Deploy AI-powered chatbots to improve customer experience
Create professional marketing materials

Technology Integration

Beyond AI, many franchises are adopting new types of technology in order to make day-to-day operations more efficient and improve the overall customer experience.

This includes:

Digital marketing strategies
Mobile applications for ordering
Loyalty programs
Data analytics
Automation tools
Integrated POS

Video Content + Social Media Marketing (SMM)

Short-form video content is taking over the internet, and franchise businesses need to keep up in order to compete for attention. Video ads posted to social media platforms like TikTok and Instagram are a great way for franchises to stand out and boost brand recognition.

Personalized Experiences

Consumers’ wants and needs have changed dramatically over the last ten years, and customers have come to expect more from the businesses they interact with. Simply providing a product or service with a smile isn’t enough anymore. Customers want memorable, personalized experiences, which can be difficult to do as a franchise business.

Here are a few tips for providing a personalized customer experience as a franchise business:

Host customer appreciation events
Have giveaways and special promotions for your social media followers
Interact with customers on social media
Build relationships with your customers
Use text messaging to reach customers

Creative Responses to Labour Shortages

Labour shortages have become a significant issue for businesses across all industries, and many franchises have been hit particularly hard, leading to major challenges for franchise owners.

Having positions left unfilled for extended periods can lead to inefficiencies, decreased revenue and increased costs. As a result, franchise owners may not have the ability to scale their business and open new locations.

Here are a few ways franchise owners can address labour shortages through recruitment and retention efforts:

Offer competitive wages
Provide employees with benefits and other incentives
Amp up your recruitment efforts with marketing campaigns
Provide annual salary increases
Maintain a positive workplace environment

Another way to combat the widespread issue of labour shortages is to invest in a franchisor that allows its franchisees to utilize technology in order to operate the franchise efficiently with fewer employees.

Virtual Training and Support From the Franchisor

Traditionally, franchisors have provided franchisees with extensive in-person training and support programs. In fact, many franchisors had their own university-style campuses where franchisees could travel to and participate in intensive training programs onsite. However, during the COVID-19 pandemic, franchisors were forced to shift their training and support programs for franchisees online in order to comply with public health rules and guidelines.

Three years later and most franchisors are continuing to offer virtual training, communication, and support programs. In fact, online training has become the standard practice, as many franchisors realize that virtual training and support is just as effective as in-person, and is more efficient and streamlined. We don’t anticipate this changing anytime soon.

As we mentioned earlier in this article, the franchise industry is experiencing rapid growth and isn’t slowing down anytime soon. If you are a prospective franchisee looking to capitilize on this massive franchise boom by investing in one of Ontario’s best franchises, look no further than Gorilla Bins.

Gorilla Bins is Ontario’s leading waste management franchisor with several locations across the Greater Toronto Area.

Gorilla Bins offers its franchisees lots of training and support to help them be successful. We also have a track record of producing successful franchisees and have tripled our revenue over the past five years.

Get in touch with our team today to learn more about Gorilla Bins and how we can help set your franchise up for success.