ARE FRANCHISES CHANGING WITH THE TIMES?
During the mid 1970’s when I became a franchise consultant there were no more than 500 different types of franchise businesses making up a few dozen industries, but now we have well over 4,000 franchises from at least 76 industries. Commonly restaurants, fast food and food related businesses were the franchises of those days, but service and in-home businesses are gaining ground today.
Very few people actually understood what a franchise was prior to FTC Rule 436 that only came out since October 21,1979. The rule required franchisors to provide disclosure information to prospective buyers of their franchise offering. Definitely franchising as a method of marketing a product or services is widely accepted by the masses where ever you go in the world.
Personally I ive witnessed the tremendous growth of franchising over the past 30 years. Franchising has proven itself as a spectacular method of business expansion over the years. Few would argue the success and impact franchising has had to our economy particularly over the past dozen or so years. As franchising exceeds $2 trillion to our U.S. economy and climbs to 50 percent of retail gross national product, many predict that over the next 50 years, over fifty percent of all businesses will be franchised.
But the question is asked, “Is franchising changing with the times?” With the current economic conditions in the United States and throughout the world, are franchises adjusting to these changing conditions? In researching the types of franchises being offered today in the fields of computer, in-home business and the service industries in general one would conclude that franchising is adapting itself to our changing economy, environment (more green franchises), and life styles. One of the major benefits of franchising as a method of marketing is adaptability to market conditions. When a new business concept emerges that can be duplicated then it can be franchised.
Today any potential franchisee can find a business opportunity in just about any field and from nearly all price ranges.