The franchising industry continues to evolve, shaped by changing consumer behaviors, technological advancements, and economic conditions. Studies show that total franchise employment is forecasted to grow and reach 8.9 million, and the total output of franchised businesses will increase to $893.9 billion.
Staying ahead of trends in this growing industry is essential for franchisors and aspiring business owners. Here are five key trends in the franchising industry that are impacting decisions and driving success.
1. Sustainability and Eco-Friendly Business Models
Sustainability is long past being a buzzword for business, it’s a standard. Consumers are now more environmentally conscious than ever, with many wanting eco-friendly options and brands aligning with their values. This change in consumers has led to businesses changing their practices and priorities to reduce waste and minimize their environmental footprint. As a result, franchises that adhere to eco-friendly practices are gaining a competitive edge.
Sustainability has always been at the heart of Winmark - the Resale Company®. Our buy-and-sell business model promotes reusing quality and gently used items, reducing waste and supporting the circular economy. We’ve purchased over 1.8 billion items in communities across North America since 2010 through our beloved resale brands Plato’s Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore®, and Music Go Round®. This commitment to sustainability attracts environmentally-conscious consumers and fosters loyalty and repeat business.
2. Technology Integration and E-commerce Growth
As technology advances, franchises leverage digital tools to enhance the customer experience, streamline operations, and expand their market reach. Technology integration is becoming a critical trend to enhance the customer experience, with franchises adopting e-commerce platforms, mobile apps, and data analytics to optimize their businesses.
At Winmark, we give our franchisees extensive support and a proprietary point-of-sale system (POS) with insightful data about the most effective buying, pricing, and other inventory management strategies. This data is based on our over 35 years of experience and a proven track record of success for franchisees with our brands.
3. Multi-Unit Ownership and Cross-Branding Opportunities
Multi-unit franchising is rising, with many franchisees opting to own and manage multiple locations. This trend is driven by the potential for higher earnings, economies of scale, and the ability to diversify revenue streams. Additionally, cross-branding within a franchise system allows franchisees to tap into different market segments and maximize their investment.
This approach enables franchisees to cater to a broader customer base, leveraging the strengths of different brands within the Winmark portfolio. For instance, a franchisee might own a Plato’s Closet and a Style Encore, serving different demographics while benefiting from shared resources and marketing efforts.
4. Focus on Community and Local Impact
Franchises prioritizing community engagement and local impact are resonating more with today’s consumers. Businesses are increasingly expected to contribute positively to their communities, whether through local partnerships, charitable initiatives, or sustainable practices.
Our franchises are deeply rooted in their local communities. They offer products that meet the specific needs of their customers while also supporting local economies. By keeping more than 182 million items out of landfills in 2023 alone, Winmark franchisees demonstrate their
commitment to environmental sustainability and community well-being. This local focus helps franchisees build strong relationships with their customers, leading to increased loyalty and repeat business.
5. Different Markets Gaining Momentum
Many different markets in the franchising industry are experiencing growth, and the resale retail sector is experiencing significant growth as more consumers embrace secondhand shopping for both economic and environmental reasons. Franchises in this space are well-positioned to capitalize on the growing demand for high-quality, affordable, and sustainable products.
Winmark has been a leader in the resale retail industry for decades, offering a proven business model that meets the needs of today’s value-conscious consumers. With a focus on gently-used, brand-name merchandise, our five franchised brands cater to diverse markets, from fashion-forward teens and adults to families and musicians.
As the franchising industry continues to grow and evolve based on these trends, Winmark franchisees have the tools, support, and brand recognition needed to thrive in the evolving market.
Contact us today for more insights into the franchising industry and explore how you can achieve your entrepreneurial dreams with a brand ahead of the curve.