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2016 Franchise Trends

2016 Franchise Trends - Featured Image

A HIS Economics study performed for the International Franchise Association predicts that the franchise industry will grow by 1.7 percent this year, increasing output by $52 billion, franchises by 13,359, and jobs by 278,000. Here’s a look at their infographic.

Shifting Demographics

Shifting DemographicsGrowth opportunities will be affected by shifting demographics, from 70 million millennials starting careers and families, to aging baby boomers retiring and living longer, to the steadily rising number of minorities. Franchises will need to consider how these changes will impact their business decisions in the realms of development, marketing, and available labor.

The Trend That Never Goes Out of Style

The Trend That Never Goes Out of StyleRecession-proof businesses will always be a smart option for those looking to start or buy a franchise. According to Entrepreneur, to identify recession-proof businesses, simply ask the question, “What do people consider a necessity rather than a luxury?” Child care, tax preparation, and haircuts are three good examples of this. Other recession-proof options include businesses that sell inexpensive things, such as fast food or used goods. As the current economy continues to struggle, it’s no wonder that the top spots on Entrepreneur’s Franchise 500 List for 2016 include Jimmy John’s Sandwiches, Supercuts, Subway, and McDonald’s.

Go Green and Earn More Green

Go Green and Earn More GreenWith more focus than ever before on global warming and climate change, green-related businesses are getting a serious leg up from state and federal governments. Huge incentives for everything from electric cars to energy-efficient buildings are fueling growth. Franchise concepts that embrace any aspect of the green way of life will benefit from this rising collective focus on energy conservation and government support.

A Focus on Health

A Focus on HealthThe growing aging population and such factors as the rise in childhood obesity all make growth ideal for industries focused on fitness and nutrition. According to Inc., corporate wellness is a hot trend as well: “With businesses looking for ways to lower health care costs, corporate wellness programs are expected to boom between now and 2020.”

To learn more, read this article about the 20 trends to watch from Franchise Times.

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