Hey, Franchise Searcher,
Hope you had a nice 4th of July.
Sending along an update on the emerging non-food franchise world through the first half of the year.
As a quick side note, my goal for the rest of this year is to send you weekly inside information from my world that can help you figure out if starting your own business by investing in a non-food franchise is the right next move.
People who reach out to me directly are the only ones getting this insight and I realize many of you are in research mode.
When you get into action mode and are ready to hunker down to find a business to start, reach out!
Back to the update!
The entrepreneurial spirit is strong!
The first six months have seen a ton of franchise activity.
Look, I get it. Coming from a franchise broker, what else you would expect to hear?
Here’s why I’m saying this…
The short story is I’m affiliated with one of the top broker networks in the country (FranChoice).
I get data sent to me every month about which franchises people are investing in.
And the data says 2023 has been and should continue to be a strong year because more and more people are investing in franchises.
Personal anecdote, I’ve had the busiest six months ever.
• Shakeups in the corporate world.
• People wanting to diversify income streams away from the W2.
• Entrepreneurs investing in franchises to avoid recreating the wheel.
• Certain franchise companies building sophisticated business models that make it easier to run the business.
So, which franchises are people buying?
Disclaimer: don’t go out and buy just any franchise in these spaces.
There are only a handful of franchises in each space worth exploring.
Alright, disclaimer said. Onto the good stuff…
Home services is at the top of the list
(aka home improvement/residential/commercial services/property services)
People are buying homes and improving them.
Lots of people locked into mortgages with low-interest rates are planning to stay there for a while and invest in their homes.
The millennials are rising up as a larger percentage of homeowners and notoriously outsource everything.
The headwinds are strong in this space.
And there are certain franchises that have identified fragmented niches and built a scalable business model to capture market share.
I’m seeing franchises in the following categories growing quickly…contents cleaning and restoration, insulation, fences, painting, roofing/exterior services, gutters, kitchen/bath remodeling, window coverings, and more.
There is more money in some of these niches than I would have ever thought.
Health and wellness is booming!
Self-care continues to rise as people have become more aware of the importance of taking care of their physical, mental, and emotional well-being.
Medspas, stretching, Orangetheory-lite for the 50yo+ crowd, boutique fitness, infrared saunas, cold plunge, IV therapy, testosterone replacement therapy, spray tan 2.0, etc.
The force is strong with this one…
Next up is kids’ enrichment and education
We all want the best for our kids (and we’re willing to pay for it).
From preschool, to tutoring, to swimming lessons, to other enrichment activities, there are a number of niches here with lots of money being spent.
And certain franchises have figured out ways to capture parents’ wallet share and deliver an impact to the kids and families in their community.
Did you know the total lifetime cost of owning a dog can run anywhere from $19,893 to $55,132?
(that’s what a recent study published by a publicly traded consumer financial services company call Synchrony found)
Think about that…Up to fifty-five. Thousand. Dollars.
That makes this next statistic make a little more sense…
It’s estimated that Americans spend about $99 billion on their pets and pet products every year
Ninety. Nine. Billion.
And then, think about the pet ownership boom that was trigged by COVID.
Those are the headwinds blowing behind certain franchises in the dog training, dog boarding, and grooming spaces and why some of these brands are on exploding.
There you have it…
I’m off to a conference next week with over one hundred of the top emerging franchise brands in the country and will send out a report with what I learned.