As the first quarter of 2015 comes to a close, several key developments have been observed taking place in the franchise world.
Here’s 5 major trends impacting franchise ownership and influencing its growth:
1. More choices for financing choices than ever. The SBA has revamped their loan options to make them more accessible and more affordable. Now entrepreneurs can obtain Express SBA loans for borrowing under $150,000 or Micro SBA products for borrowing under $50,000. Plus, banks are now promoting home equity lines of credit (HELOC), and franchisors are offering their own financing programs. Moreover, these options are appearing in a low-interest environment with more relaxed approval standards.
2. More multi-generational partnerships. A growing number of well-financed baby boomers and tech-savvy millennials are preferring to be their own boss over climbing the corporate ladder . More and more, these two groups are collaborating together and forming many successful partnerships within franchising.
3. More mobile usage. Today, there are now more mobile users than desktop users, making the mobile market a priority for all businesses, including franchises. Google recently announced that in its search engine will now favor mobile websites in search engine ranking over non mobile sites. Tools like mobile apps and text messaging will allow businesses to reach more customers than ever before.
4. More emphasis on community. Leveraging social media, and and building community engagement is paying off. Those businesses that go beyond their own storefront, take the time to respond to online reviews, offer deals to loyal fans, and promote the ways in which they give back are winning big.
5. More franchising growth. According to the International Franchise Association, franchising ‘s growth is expected to outpace that of the U.S. economy as a whole. In 2015, franchising is expected to add 12,111 new franchise establishments and generate $889 billion in economic output, while adding 247,000 new jobs.
Overall, 2015 is the year that franchising is expected to grow and prosper.
“Why ‘become your own boss’ looks better than ever.”