Take a look at these franchise-friendly industries.
When we think of a franchise, we tend to think of household names that have achieved world domination through this business model – McDonald’s, Starbucks, Marriott International, National Car Rental.
Restaurants and hotels have led the way in franchising and growing their brands across the world, but it’s a business model that can work in many different sectors, as we’re starting to see.
An emerging franchise sector is becoming increasingly appealing for investors looking for their next big challenge. Today, the business model is stretching into new sectors, providing growth areas ripe for investors looking to become franchisees, and individuals looking for a turnkey solution to becoming business owners.
Investors seeking franchise opportunities have a unique opportunity to take advantage of emerging franchise industries across property, flexible workspaces and wellness.
Flexible workspace growth
Last year alone, the number of flexible working locations worldwide grew by 15.2 per cent and 12.4 per cent of the office market in Australia is expected to be flexible by 2030 with 50 per cent of all workers predicted to be working remote ‘most of the time’ by 2020.
By 2030, property services are anticipated to generate the most value as part of the $AU122 billion estimated total for economic output contributed by the rise of flexible and remote working in Australia. This offers investors the unique opportunity to diversify away from traditional franchise industries, and benefit from strong cash returns and significant returns on investment.
It’s something we’ve observed at IWG, which has 3,400 locations across more than 120 countries (including 80+ in Australia) and can provide partners with a highly attractive return on their investment. The IWG offering includes office space, co-working options, meeting rooms and virtual offices as well as a range of their own services to support clients in areas including sales, marketing and HR.
This emerging franchise sector is becoming increasingly appealing for investors looking for their next big challenge.
Property
As flexible workspaces develop alongside the changing nature of office work, so too does the property market see changes.
Well-established real estate agencies such as Century 21, Raine and Horne, L J Hooker and Ray White all offer franchise opportunities and the industry is valued at $10 billion. According to IBISWorld, the more than 7,000 businesses employ nearly 70,000 staff.
In Australia, we’re also seeing an increase in the strata franchise market.
For example, Australia Strata Management is a new player in the strata franchise market, already with 40 of its 51 highly successful territories managed by experienced Strata Management franchisees.
Wellness
The wellness industry has experienced rapid growth through franchising. The Australian fitness industry is now worth $2.4 billion, positioning the wellness sector as a major player in franchising in Australia.
Gym franchises have become a staple part of the franchising landscape for some time, with Anytime Fitness revolutionising the 24-hour gym industry with 500+ locations across our nation since it started franchising in Australia in 2008. A newer but fierce competitor is F45, which has successfully become Australia’s fastest growing fitness chain and is now the country’s largest gym operator with more than 570 locations, contributing significantly to the growth of the wellness industry.
There are new opportunities opening in this exciting sector, from nutrition, supplements and mental wellness centres. One example is Mass Nutrition, Australia’s leading health and supplements brand, which announced its new franchise structure in 2017 to take on further investors and directors allowing the company to expand.
Whether starting up an estate agency, jumping on the wellness trend, or delving into flexible workspaces, franchisees are looking at less traditional industries. Expect to see this trend throughout 2020 – and for the foreseeable future.