Intriguing Franchising Trends for the New Year

Are you attracted to the idea of opening a franchise? It makes sense—you get a recognized brand, a proven operating system and built-in sales and marketing training and support, usually for less than it would cost to launch a similar business from scratch. Franchise Times reported on some intriguing franchising trends for 2013 and heading into the coming year, including healthcare, celebrity endorsements and consolidation.

Healthcare Franchises

The Affordable Care Act has sparked some surprising business franchising opportunities, such as the new economy hearing aid franchise Zounds, and new nutrition and fitness franchise concept Red Light, Green Light, Eat Right. Other hot medical franchise opportunities include chiropractic, lab testing, weight control, mobile dental equipment repair, fitness centers, learning assistance, home care and hospice and senior nursing care. Expect to see even more varied franchise concepts as naturopathy, lasik eye treatment and home health care, due to the expected addition of millions more Americans with health insurance and a shortage of primary care doctors.

Celebrity Endorsements

Celebrity endorsements are gaining traction in franchising. Stars bring in customers and big business. The latest celebrity endorsements for franchises include Peyton Manning for Papa John’s, singer/rapper Pitbull for Miami Subs, Shaquille O’Neal and Auntie Anne’s and Magic Johnson and Starbucks. Celebrity endorsement isn’t a new marketing concept and while it does come with some pitfalls, partnering with someone who already has a huge fan following can be a shortcut to success.

Consolidation

Franchise Times reports that franchises sold in record numbers in 2012, in addition to many mergers and acquisitions in the franchise world. The trend continued in 2013, with franchisees getting bigger because smaller units are selling to big operators due to increasing food costs, anticipated rise in healthcare costs in 2014, costly remodeling campaigns and retiring operators. Costly rebranding and remodeling campaigns are big incentives for smaller operators to sell. Burger King and Wendy’s have major remodeling and rebranding initiatives, and Applebee’s is rebranding.

How to Get Started

The Entrepreneur Authority recommends you first figure out what your priorities and expectations are. Consider such factors as what industry you want to work in, if you want a large brand or a new niche, and how much you are willing and able to invest.

As with any business and financial dealings, conduct your due diligence as far as raising the necessary capital. The Small Business Administration (SBA) has many resources for those who want to buy franchises, including tutorials and franchise research resources. The SBA also has information about securing a business loan to fund your franchise purchase. In addition to business loans, interested entrepreneurs may be able to fund their venture by selling annuities for a lump sum payment up front.

Finally, read and understand the detailed disclosure document required by the Federal Trade Commission’s Franchise and Business Opportunity Rule.