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Our portfolio of brands with leading concepts ripe for expansion. Our brands have best-in-class unit economics and a large runway for growth.

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Want To Learn More About Franchising? Learn From The Experts At Fransmart. There’s no better collection of franchise resources and experts.

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Dan Rowe, the founder and CEO of Fransmart, has grown brands to more than 100 locations. No one knows more about franchise growth than him.

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Our portfolio of brands with leading concepts ripe for expansion. Our brands have best-in-class unit economics and a large runway for growth.

Franchising Thriving Despite Economy

Aug 24, 2022

Faizan and Adila Kahn photo on a grey background and white text and purple button that says GLO30

With rising inflation and interest rates, the economy has constricted during 2022. However, franchising continues to lead a post-pandemic recovery with the International Franchise Association projecting 257,000 franchise jobs added this year, with 8.5 million USA workers employed by a franchise.

Coming out of the pandemic and fueled by the Great Resignation, franchising grew by 8.8% in 2021, and another 2.2% of growth is expected in 2022.

Why Franchises are Popular Today

Franchising is growing, while other sectors are slowing or declining for many factors. After COVID, many people decided to change their status from employee to entrepreneur and franchising provided a model that offered self-employment, but with the safety and structure of a proven system. Offering a turnkey option for business ownership is especially attractive to would be entrepreneurs, many of whom are more risk adverse post pandemic. The added support given by a franchisor is also a huge benefit to someone going into business for themselves for the first time.

The pandemic also created an environment where franchisees have access to an abundance of capital and favorable real estate terms. Making it financially easier than ever to own a franchise business.

Franchising is good for the employees a franchisee hires too. According to Oxford Economics research, employees of franchise brands enjoy pay that is about 3% higher than independent companies and 65% of franchise employees have health care, above the national average of 49%.

What Kind of Franchise Will Succeed?

If you’re going into franchising to really get wealthy the key is to find an emerging brand with a strong growth trajectory and then use the profits from the first store to fuel additional locations. It’s these newer brands, not mature brands like McDonalds or Subway, that offer franchisees the chance to accumulate wealth. While it might seem riskier to go with an emerging brand, Fransmart, the company that discovered and grew Five Guys and The Halal Guys, has found the secret sauce to identifying emerging brands that have the necessary components to grow. In 2022, Fransmart believes brands that fall into some broad categories are poised to succeed.

Technology-Focused Brands

Franchise brands that leverage technology to improve operations, like Taffer’s Tavern with its “Kitchen of the Future,” or  Rise Southern Biscuits & Righteous Chicken that uses kiosks and heated lockers to improve customer off-premise experience are leading the way in top franchises in 2022. These technology platforms help franchisees reduce operating expenses.

Low-Labor Models

Post pandemic finding good help is hard, and payroll costs have skyrocketed. Concepts like Duff’s Cake Mix, which can run a shift with two or three employees, or Brooklyn Dumpling Shop, which uses Automats and other technology to reduce staff are winning models for franchisees.

Strong Unit Economics

Numbers don’t lie. If you want to project future success, look at brands like Savannah Seafood Shack and nomoo that boast strong numbers.

Non-Traditional Franchises

With continued labor shortages and supply chain struggles, many people are looking for an alternative to restaurant franchises. Brands like PayMore, the fast growing used electronics retailer, and Duff’s CakeMix, an experiential retail brand are great alternatives for either a new franchisee or a franchisee looking to diversify their holdings.

With franchising a bright spot in the economy, there’s never been a better time to see how you can get wealthy through franchising. Contact Fransmart today to learn what brand can fuel your success.


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