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Franchising in Canada has the significant benefit of...
As we reach the midpoint of the year, it is appropriate to reflect on the trends impacting Canadian franchises.
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Growth areas
Major growth areas include health and wellness, education and business to business (B2B) franchises. There are many reasons this is the case, but the growth in these areas is primarily driven by a consumer's growing need to stay healthy and seek meaningful career opportunities as the high cost of inflation and a struggling labor market continue to bite.
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New franchisee confidence is on the rise
2024 has seen an increasing number of franchisees becoming established, and when considering the current economic climate, this may appear surprising at first. One would imagine that starting a new business during an economic downturn would be risky, but in fact, as the statistics show, savvy and strategically-minded entrepreneurs can capitalize by establishing a new business during tricky financial times, then reaping the rewards as consumer cash flow relaxes at a point where they are already familiar with the business's goods and services.
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Young entrants pursuing careers in franchising
As highly qualified graduates are struggling to secure fulfilling employment, many are turning their sights to franchising. They are typically enthusiastic, full of new ideas, and highly tech-savvy, making them ideal candidates to take on the challenge of growing a franchise brand. They often lack the financial commitments and domestic responsibilities of older franchisees and therefore have greater flexibility and risk appetite. These factors together mean that young entrants should be encouraged to pursue a career in franchising.
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Technology is optimizing business operations
AI and automation are proving beneficial in the franchise world, as in other industry sectors. Food and beverage franchises are controlling costs and delivering consistent quality standards as they embrace food service robots to perform functions such as portion control and food assembly. Elsewhere, AI enables franchisors to analyze vast quantities of data quickly and accurately, helping them target their investment decisions and supporting the achievement of strategic aims.
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Remote working is prevalent in franchising
As with all other industry sectors, many people are actively selecting their roles based on their ability to work remotely. This delivers impressive cost efficiencies on sourcing, heating and securing work space, allows entrepreneurs to work at their convenience, and still satisfies the needs of their consumers. Digital businesses such as online tutoring and accounting are becoming increasingly attractive to those who want to work from home.
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Franchising is full of opportunity
Franchising, like many other industry sectors, is seeing significant growth in certain key areas. However, unlike more traditional business models, it offers greater opportunity and security to young entrants, capitalizing on their enthusiasm and drive to enact ambitious growth plans that will see businesses emerge stronger and more successful from the cost of living crisis.
