Global Trends in Franchising

Franchisors recognise the rise of the 'international' market as the world is getting smaller and the need for products and services is getting larger. Rod Young assesses the emerging global franchise trends and the significant opportunities they create

Over time, experienced franchisors have learned that a focus on establishing profitable businesses that create greater value at the customer end is critical to building long-term enterprise value for a franchise network.

However, the trend for well-run franchisors to recruit, screen and select better quality franchisees—and those better quality franchisees gravitating towards well-managed franchises—will drive the growth of substantial franchised networks on a global scale.

Heavily populated emerging economies in Asia, Eastern Europe and South America are starting to create a substantial consumer class fuelled by manufacturing and service jobs being exported from Western markets.

Established economies have allowed Western consumers the luxury of indulgence and there is no end in sight for the growing foodservice categories that are now starting to populate the business environment in emerging markets. Franchised food businesses will continue to offer up more and more niche products, and the services that go with them.

Man-in-a-van franchises, such as PoolWerx, Molly Maid and Mr. Handyman, educated the time-poor consumer about the use of domestic services in the home. This frees us up to consume franchised personal services in the form of weight-loss services, day spas, hairdressing services, hair removal and hair restoration treatments, beauty treatments ranging from pedicures to facials, dating services and medical procedures including IVF services, cosmetic surgery and laser vision correction.

Demand for services are not only focused on ourselves, but will expand into the growing markets of childcare and child development. As we wish more for the fewer children that singles and couples are having, we will be spending more on our offspring in all forms of child development and education.

As baby boomers and their parents get older, the development of franchised in-home carers, and other hospital-in-the-home concepts will not only reinforce the opportunities for the cleaning, and other home maintenance, brands of today but create a raft of more tailored healthcare services designed to allow us to live independently well into our final years.