As we close the first quarter of 2022 (and officially pass the two-year mark since COVID-19 started), let’s take a moment to highlight the biggest franchise news so far this year.
- The International Franchise Association (IFA) forecasts 2022 to be a large year in expansion for franchises. Franchise businesses played a large role in the beginning stages of industry recovery in 2021. This is thanks to a hiring surge of employees and an increase in new franchise locations overall. You can read the full report here.
- Service-based franchises are expected to boom. As a result of the pandemic, a large part of society found themselves at home for extended periods over the past two years. With this, consumer focus turned to home improvement, and a need for these services boomed. In addition, “The Great Resignation” opened up the idea of working for oneself. Service-based businesses were the go-to. We’ve provided additional insights on this trend here. As well, here is the full list of service-based brands seeing the most growth.
- Franchises see growth in the diversity of owners, investors, and the labor force. A rise in women-owned franchises continues. In the past decade, there has been a 24% increase in women-owned franchises. Learn more about the opportunities franchises have for women here. IFA forms a Hispanic Latino Franchise Leadership Council. Another step that the IFA is taking to expand its diversity and inclusion. It has the hope to amplify the voices of the Hispanic Latino owners in the franchising community. Learn more here.
- TV ad spend to fall below 20% of total spend for the first time. Ad spend is continuing to move away from traditional cable TV and into digital channels. Digital video ads provide better targeting, better measurement, and overall better results so it is no surprise that it is gaining popularity. This creates a great opportunity for the franchise community to also make the move away from linear TV ads. Learn more here.
- IFA Annual Convention held in person for the first time in two years. Our team was able to attend the IFA Convention in San Diego, here were the biggest takeaways.
This quarter saw a lot of developments around themes of diversity and growth. The franchise business model is seeing positive growth signs as we move forward in 2022, but it’s clear that the benefits of growth are also producing dividends for a wider group of people. This upward trend will hopefully continue into the second quarter.
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