The U.S. franchise industry is booming in 2017, and that’s why Rhino7 is thankful to all our franchisees, clients, and customers for celebrating National Franchise Appreciation Day on Saturday, August 26. This unique tribute to the entrepreneurial spirit started in 2011 and is now in its seventh year of bringing together customers and franchises together to cheer on their successful relationships.
This is an opportunity for franchises like the ones under our umbrella here at Rhino7 to show their customers and local communities their appreciation for supporting them year-round. It’s a chance for these vital small businesses to increase customers’ knowledge about how their businesses work and offer discounts, giveaways, and other deals to drive business into the thriving fall season.
Conversely, it’s also a chance for customers to enjoy a day in support of their favorite franchises and show these businesses that they’re thankful for the products, services, and contributions they provide throughout the year. From sponsoring little league baseball teams to donating products and services to good causes in the community, franchises are often the backbones of towns small and large, so National Franchise Appreciation Day is a great opportunity to share those benefits.
“Franchises support local schools, the community and so much more,” said Andre Key, CEO of Sociallybuzz, which helps promotes the event via social media channels.
This relationship creates a successful cycle for both small businesses and customers. The word of mouth and social sharing that customers provide drives more business to each franchise. In turn, the additional revenue that each franchise earns enables them to hire more people in the community
The Franchise Sector by the Numbers
So just how successful is the franchise industry in 2017?
The answer is: business in the franchise industry is booming. According to the
International Franchise Association (IFA), the franchise sector is expected to grow by $36 billion in 2017 through business and job additions. The number of franchise locations is expected to increase by 1.6 percent to nearly 750,000 discrete businesses. The sector will also provide 7.9 million jobs in the United States, up 3.3 percent from 2016, and an addition of a quarter of a million new jobs.
The dollar value alone is staggering. This slice of American entrepreneurship is equivalent to a gross domestic product of $426 billion, up over five percent from 2016. Franchised businesses account for nearly 50 percent of all retail sales in the United States, while the economic output of the franchise sector is over $890 billion, equal to a full three percent of the U.S. Gross Domestic Product.
“Franchising is an American success story,” says IFA president and CEO Robert Cresanti. “Establishments are growing faster and creating more jobs at a faster pace than the overall economy. They’re getting more sales and growth than other businesses.”
Which Franchises are Most Successful?
The fastest growing franchises in 2017 are a wildly diverse group ranging from business services to quick service restaurants to retail products and services. Franchise formats cross over 300 business lines including but not limited to automotive services, commercial and residential services, lodging, personal services, real estate, retail products and services, and restaurants.
While this year’s Economic Outlook from the IFA shows that all of these areas will see significant growth, the IFA is clearly seeing significant growth in some sub-sectors of the franchise industry. The lodging industry is still a growth leader with 6.6 percent output growth. Fitness services, with over $25 billion in revenue, and auto franchises ($44 billion) are also hot markets.
Forbes recently reported on the rise in the home healthcare sub-sector of the franchise industry. Like home health care, certain franchise sectors that require lower investment, high revenue, growing demand, and a chance to give back to the community are on track for high-yield growth.
Real-World Examples from the Rhino7 Family of Franchises
What many entrepreneurs and other small businesses are surprised to learn is just how extensive the support from their umbrella franchise can be.
“What most small business owners don’t realize is that franchising is a separate business in and of itself,” explains John Cohen, co-founder and president of our own Rhino7 Franchise Development Corporation. “While they might be passionate about the space they’re in, whether that’s self-serve frozen yogurt or pet grooming, and they’re good at managing staff and day-to-day responsibilities, they have to have a different skill set to franchise. It’s like adopting a bunch of businesspeople and teaching them to do what it is you do. You have to be patient and very, very detail-oriented, a good trainer, and a good systems person. Or you have to hire staff to help you with that.”
Diversity in offerings is one of the reasons that Rhino7 brands are so distinct from each other, yet it’s also an opportunity for budding entrepreneurs to pivot to a business that speaks to them. Rhino7 was founded in 1999 to grow existing franchisors by selling franchisees, and help create new franchisors out of existing businesses. Our portfolio of franchise brands includes:
- All About People: Since 2002, this professional staffing and recruiting company has been empowering their clients to better their careers, businesses, and lives through the life-changing process of launching a franchise.
- StormGuard Exterior Restoration: As the nation’s first exterior restoration franchise, Storm Guard is a recession-proof enterprise supported by an insurance industry that pays out over $200 billion annually for claims. This is a powerful business model based on industry fundamentals, futuristic weather technology, and a support structure that is second to none.
- Pro Martial Arts: Much like we discussed in the case of home health care growth, this innovative business model benefits from low investment, high demand, and a unique opportunity to make a difference in local communities. In addition to keen physical training for children, these franchises teach respect, manners, confidence, and discipline.
- Scout & Molly’s: Our foundation for the retail sector offers a unique mix of vintage-chic style and personalized service and is a rock star in the $25 billion clothing boutique industry. Founder Lisa Kornstein empowers entrepreneurs with a proven sales matrix, real estate assistance, inventory and purchasing control technology, and world-class sales and managerial training.
In addition to these opportunities, Rhino7 works with hundreds of brands across the United States to help grow their networks, hone their business models, and turn their businesses into names that people know and trust.
“Rhino7 assisted Great Clips with our franchise development efforts for over seven years,” says Charlie Simpson, Former President of Great Clips, Inc. “During that time I found that the entire team at Rhino7 were professional, effective, and they conducted business with a high level of integrity.”
How Rhino7 Helps Entrepreneurs Achieve Franchise Success
Rhino7 was founded by Doug Schadle and John Cohen, who bring years of experience in franchisor development, franchisee sales, territory development and marketing, and royalty revenue generation. That’s why they know exactly what you should be looking for in a partner if you’re interested in launching a franchise enterprise.
We start the process by helping our clients to strengthen and enhance their existing networks and support systems. Then we guide our clients through our Franchisor Assistance Program, which provides franchise owners and operators an unprecedented education in how to plan, build, scale, and multiply a successful franchise business. This not only gives potential franchisees a foundation for their business, but it also allows them to learn how to build a business while employing their own entrepreneurial spirit and unique styles to personalize their adventure. It’s a foundation that even the industry admits is badly needed across all sectors.
“There certainly could be better education out there,” says the IFA’s Robert Cresanti. “It’s our daily battle, educating people on what franchising is and isn’t, and how the business model works. That is a continuing challenge for us.”
Rhino7 meets that challenge by offering a business platform that integrates all the best practices of the franchise industry with innovative new techniques, technologies, and strategies to help our franchisees succeed.
Our Franchisor Assistance Program empowers entrepreneurs by offering:
- Franchisee Sales Presentation Development
- Rhino7 Operations Support Services
- Franchisee Lead Cultivation and Sales
- Experience & Qualified Sales Staff
- Corporate Business Planning
- Franchisor Soft Skills Development
- Operational and System Communication
- Consultant Network and Business Broker Lead Generation
- Franchise Brand Evaluation
- U.S. Territory Mapping
- Technology Application Creation
How to Share the Love on National Franchise Appreciation Day
Whether you’re a franchisor, a franchisee, an employee or simply a satisfied customer, take some time on Saturday, August 26th to visit your favorite local franchises or give them a shout-out on social media. Use the hashtags #NationalFranchiseAppreciationDay or #FranchiseAppreciationDay, and tag us on Twitter using @Rhino7Franchise.
If you’re interested in becoming an entrepreneur, initiate a conversation with the managers at your local franchise to find out how they got started, what challenges they face, and what they find most satisfying about running a business. You can also always contact us to find out more about opportunities in the franchise sector.
If you own a franchise, consider running specials, giveaways or contests to celebrate National Franchise Appreciation Day to reward your customers and lay on a little education about how the franchise system helps support small business in America. Many customers don’t realize that their favorite businesses are franchises, whether they’re a highly curated local boutique or a chain of regional taco trucks.
The bottom line is that franchises are good for entrepreneurs, good for customers, and good for the country. We encourage you to join us on Saturday, August 26th for National Franchise Appreciation Day and celebrate the American entrepreneurial spirit that makes our country great.