A Look at How Franchising Has Changed Over Time
One of the most well-known franchise businesses around the world, McDonald’s, was started by Ray Kroc in Des Plaines, Illinois, back in 1955. Since then, both the brand and the franchising industry have come a long way. Today, McDonald’s operates over 37,000 outlets across 120 countries and is considered a key example of how the franchising model can succeed.
Like McDonald’s, the franchising industry has grown and evolved over the years. It has learned important lessons, adapted to new ways of doing business, survived a global pandemic, and become one of the most popular business models for new entrepreneurs.
How the Franchising Model Has Grown
At first, franchising mostly meant giving someone the right to use a brand’s name, design, store layout, and business secrets. Franchise owners usually ran a single outlet, handled day-to-day operations, and earned enough money to support themselves and their families comfortably.
Over time, franchisors introduced new ways to grow the business. These changes allowed franchisees to own more than one outlet or gain exclusive rights to operate in a certain region or state. Today, more than half of all franchise outlets in the United States are owned by people who manage multiple units and earn millions in revenue. Most franchisees no longer spend their days preparing food or offering services directly. Instead, they lead teams of employees and managers and focus on business strategy and growth.
Another recent shift is the rise of franchisees who own and run more than one brand. This multi-brand approach shows how much the model has changed. As the industry keeps evolving, it’s a good time to explore current trends and what lies ahead for franchising in the coming years.
Franchising Industry Trends
Using Convenience from the Pandemic to Your Advantage
The pandemic hit the restaurant and hospitality sectors hard, but many fast-food franchises found smart ways to keep running and serve their customers. Some of the most useful changes introduced during that time—like curbside pickup, online ordering and delivery, and outdoor dining—are still popular today.
On the business side, tools like Delightree and video conferencing have made it easier to manage franchise locations remotely and communicate better between franchise owners and the main brand. These tools and features, created during difficult times, are now part of the regular way of doing business. Franchise owners have discovered that these changes offer real value, so they are keeping them as part of their daily operations.
Running an Environmentally Friendly Business
Today, there is a stronger focus on protecting the environment and using natural resources responsibly. This growing awareness has encouraged many franchise owners and brands to find more eco-friendly ways of doing business and reaching out to customers.
More businesses are adopting steps like using sustainable packaging or encouraging customers to bring reusable cups. Marketing and advertising efforts also reflect this shift by focusing on values such as social responsibility, inclusion, and transparency. These are no longer just nice additions to a business—they are essential. Franchise businesses that take these steps seriously and make them part of their company culture are more likely to succeed in the long run. The future of business is about being both profitable and environmentally conscious.
Adapting to a New Generation of Customers and Workers
The customer base and workforce in the U.S. today look very different from how they did in the past. Franchisors and franchisees need to understand these changes and update their policies, work culture, and approach to employees and customers.
Millennials, baby boomers, seniors, and minority groups all form important parts of today’s consumer and worker groups. Each group has its own expectations when it comes to the products they buy or the jobs they want. This wide range of needs also creates many new opportunities for franchise businesses.
There are nearly 70 million millennials in the U.S., many of whom are starting their careers or raising families. This group offers a big opportunity for franchise owners to provide services that meet their needs. On the other hand, baby boomers and seniors are creating strong demand for services like healthcare, fitness programs, retirement planning, elder care, and anti-aging solutions. They also need home upgrades to suit their needs as they age. These demographic changes will continue to shape which industries grow through franchising.
Strong Areas for Franchising Success
There are no guarantees in life or business, but some sectors are showing steady success through franchising. If you’re thinking about becoming a franchisor or franchisee, here are some areas worth considering:
Food and Services
Essential services like salons, accounting and legal help, child and pet care, logistics, auto repairs, home maintenance, and tech services tend to do well regardless of economic conditions. Quick-service food outlets, farms, grocery stores, and other food-related businesses are also in constant demand. These types of franchises are usually safe choices for investment.
Health, Fitness, and Personal Care
With rising health concerns and busy lifestyles, people are looking for gyms, spas, sports clubs, healthy food options, and expert advice from dieticians and nutritionists. If you’re already a fitness expert or health professional, franchising could be a smart way to grow your brand and reach more customers.
Looking Ahead
We live in uncertain times, and many people are choosing to be their own boss to gain better work-life balance and job security. For new business owners, franchising can be a smart and practical way to start.
Your own experience, interests, and the trends discussed here can help guide your decision. But no matter which franchise you’re thinking of joining, make sure you do detailed research and carefully check all the facts before moving forward.
