What Franchise Is "Hot" Right Now?
As a franchise recruiter and consultant, a question I often hear is, “What franchises are hot right now?”
And frequently my response is, “It depends”.
It depends on you and several factors:
1) Financial Means
Almost every franchise brand has a minimum liquid capital requirement; most have a net worth prerequisite and some necessitate a certain amount of working capital. As well, a minimum credit score may be required to purchase equipment for the business.
2) Time You Have To Devote To The Business
Do you want to continue at a present occupation while launching the franchise business or work in it full time?
Not all concepts allow semi-absentee or absentee ownership. You may think buying a “hot” residential cleaning franchise resale opportunity would allow you to work part-time in the business but the franchisor may require full-time ownership even though it is an established business.
3) Your Skills and Experience
Do you have management experience? Sales skills? Customer service savvy?
Many franchise models don’t require industry experience (food, staffing, senior care, etc.) but want sales acumen or management skills. Others, especially in the food industry, would like franchisees that know the food business.
4) Willingness To Follow A System
Mid-level managers to C-suite executives often decide at some point that they don’t want to answer to a boss in the corporate world any longer and investigate owning their own business-many times a franchise.
A franchisee still answers to franchisor headquarters. There will be rules to follow and reports to file. You are part of a system offering support which is the strength of being a franchisee. As an independent business owner, you would need to develop your own operating, marketing, sales and financial systems which most new business owners are not prepared to do and ultimately fail.
Our different interests make the world go round. Some will never consider a food concept while others may believe that all fitness concepts are only a fad. What interests you is important because if you can’t sustain an interest in your business, you won’t succeed. If cooking is your hobby, ask yourself if you can see yourself cooking or managing cooks 7 days a week. If you don’t relate to the third age group and can’t empathize with their challenges, you could dread owning a senior care business even though the industry is popular due to sustainability and market size.
A “hot” or “trendy” concept may not stand up with time. You may be infatuated with the franchise and think it is the greatest idea (e.g. prepare several meals at one time in a prep space to freeze and cook later or dry cleaning/laundry locker) but the public may need to be educated. Habits take time to change and sometimes that education doesn’t catch up with the time, efforts and funds you invest to get the business off the ground. Or you love a particular kind of food, but it is just a fad…
What is considered “hot” for one person, may not even be on the radar for another. It really doesn’t matter what franchises are in vogue right now because even if it is supposed to make you lots of money quickly, you might not like the concept, or have the appropriate amount of funds needed or the time it requires. What you consider popular may not be “hot” to your potential customers in the industry.
Prospective franchisees tend to gravitate toward what they hear is popular rather than look at the business model. Not only does the product or service need to be considered but other aspects of the model: value proposition, market opportunity and advantage, marketing strategy, competitive environment, revenue model, support and organizational expansion.
Be true to yourself. You want to end up with a concept that you will enjoy and can even be passionate about. Look at all facets of the business model. Just because it seems popular doesn’t mean it will be the right fit for you or that you will be successful.