Franchising Trends in 2024

Franchise owners and prospective franchisees alike must recognize that this industry—like many others—will continue undergoing more rapid change in the coming year. Staying current on franchise trends can help give you the competitive edge you need.

In this article, we’ll review the current franchising landscape, key trends to watch for, and notable franchise happenings from significant regions. Let’s dive in!

The contemporary franchise landscape at a glance

In 2024, the franchising landscape continues to evolve in response to changing consumer behaviors, technological advancements, and economic shifts.

As entrepreneurs seek low-risk opportunities with established business models post-pandemic, franchise ownership remains an attractive option for many aspiring business owners.

However, amid global economic uncertainty, emerging trends are reshaping the franchising industry, offering both challenges and opportunities for franchisors and franchisees alike.

Among the most notable trends in 2024 is the increasing emphasis on sustainability and social responsibility within the franchising sector. With consumers becoming more environmentally conscious and socially aware, franchise brands must work hard to align with these values.

“With consumers becoming more environmentally conscious and socially aware, franchise brands must work hard to align with these values.”

From eco-friendly packaging to ethically sourced ingredients to inherently sustainable business models, franchises incorporate sustainability into their operations to demonstrate their values to discerning consumers. Franchise systems are also actively seeking ways to give back to their communities, whether through charitable initiatives or partnerships with local organizations.

Technology continues to drive franchising trends in 2024, revolutionizing every aspect of the franchise business model.

From advanced data analytics for targeted marketing to AI-powered chatbots for customer service, technology enables franchisors to streamline operations, enhance customer experiences, and drive growth.

The rise of virtual and augmented reality is also transforming how franchises train their staff and engage with customers. As technology evolves, franchise brands must adapt to stay relevant in an increasingly digital world.

Trends to look out for in the franchise industry

These trends define the world of franchising and its growth in modern times.

Digital Transformation

From implementing advanced data analytics for market insights to adopting cloud-based management systems for improved efficiency, digital technologies are revolutionizing every aspect of franchise operations. For example:

Data Analytics and AI: Franchises leverage data analytics and AI for data-driven decision-making, operational efficiency, and personalized customer experiences. AI and machine learning algorithms enable franchises to personalize marketing campaigns, improve customer service through chatbots, and optimize supply chain management.

Legal and Regulatory Landscape: Digital compliance and regulatory adaptation are crucial as franchises integrate digital technologies. This involves investing in cybersecurity measures and ensuring adherence to data protection laws​​.

Health and Wellness

With growing consumer awareness about health and wellness, franchises in sectors such as fitness, healthy food, and wellness services are experiencing a surge in demand.

Franchisors are capitalizing on this trend by offering healthier menu options, incorporating fitness and wellness programs into their offerings, and focusing on promoting overall well-being to meet the evolving preferences of health-conscious consumers.

Remote Work and Flexible Models

The rise of remote work and flexible lifestyles has influenced franchising trends, leading to concepts catering to remote workers’ needs.

Franchisors are adapting by offering flexible business models, such as mobile or home-based franchises, that allow entrepreneurs to work from anywhere while still operating a successful business.

Sustainability and Social Responsibility

Sustainability and social responsibility have become integral considerations for both franchisors and consumers.

Franchise brands are increasingly prioritizing eco-friendly practices, such as reducing waste, sourcing ethically produced goods, and implementing energy-efficient technologies, to align with the values of environmentally conscious consumers and demonstrate their commitment to corporate social responsibility.

International Expansion

Despite global uncertainties, international expansion remains a significant trend in the franchise industry.

Franchisors are exploring new markets and expanding their presence globally, leveraging opportunities in emerging economies and capitalizing on growing consumer demand for familiar brands.

Strategic partnerships, master franchising agreements, and localized marketing efforts are critical strategies franchisors employ to succeed in diverse international markets.

Micro-franchising

Micro-franchising is a business model that adapts the principles of traditional franchising to small businesses, particularly in developing countries.

In 2024, micro-franchising is emerging as a significant trend in the franchising landscape, appealing to aspiring entrepreneurs and established brands. It offers a pathway to market penetration in niche segments with lower initial investment costs and streamlined operations.

This trend aligns with the demand for localized, personalized services. Micro-franchising contributes to economic development by providing viable business models to entrepreneurs at the lower ends of the financial spectrum, fostering self-employment opportunities, and assisting individuals in overcoming the lack of entrepreneurial skills​​.

Overall, micro-franchising in 2024 is critical in the evolving franchising sector, promising to reshape how businesses approach growth, scalability, and social impact.

Multiple franchise units

Many franchisors are gearing toward selling multiple franchise outlets at one time:

“We are seeing multi-unit opportunities explode like never before. So many brands are only selling in multi-packs, and we are excited about this because we have opportunities to structure funding plans around the ability to grow as a franchisee and open businesses over five or more years. We are looking forward to going to Franchise Update Media’s MUFC event in Vegas because the focus on franchisee expansion is growing year after year.” -Ali Kraus, Benetrends (via Franchise Business Review)

Franchise development trends in key global regions

Some trends are ubiquitous, but some unique and compelling things are happening continentally in franchising.

North America

The North American franchise industry 2024 is undergoing significant changes, adapting to new business models, technologies, and consumer behaviors.

• Return to Fundamentals: As companies navigate post-pandemic realities, there’s a collective shift toward emphasizing fundamental business operations—such as sales, service quality, profitability, and training—. The focus is on generating revenue, managing expenses, and running efficient business models without relying on government incentives​​​​.
• Digitalization and Fintech Innovations: Blockchain technology and digital payment solutions are revolutionizing franchise finance by ensuring transparency, security, and convenience in financial transactions. These advancements reshape the economic landscape, make operations more efficient, and enhance customer experiences​​.
• Emphasis on Employee Retention: As franchises face an uncertain economy and lower consumer spending, retaining a skilled workforce is becoming increasingly important. Employers are encouraged to engage more with their employees and cultivate a positive organizational culture to reduce turnover and focus on growth​​.
• Human-Centric Marketing and Storytelling: To break through the noise of digital saturation, franchises focus on storytelling and human-centric marketing strategies. Authentic connections with customers are prioritized to create memorable brand experiences​​.
• Trend Towards Traditional Marketing: Amidst the flood of digital content, there’s a noticeable shift back to traditional, personalized marketing strategies. This approach aims to cut through the clutter and directly engage the target audience​​.
• Growth in Specific Franchise Categories: The hottest franchise categories in 2024 include beverages, chicken, health and wellness, meal prep/delivery, pets, restoration services, sports, STEM enrichment programs, pest control, and tutoring. These sectors are experiencing significant growth due to evolving consumer preferences and market demands​​.

These trends indicate a dynamic phase for the North American franchise industry, with businesses adapting to a post-pandemic economy, leveraging technology, and focusing on core operational efficiencies to drive growth and resilience.

South America

In 2024, the South American franchise industry is experiencing several notable trends shaping its trajectory.

One significant trend is the expansion of international franchises into the region. With a growing middle class and increasing consumer demand for diverse offerings, South America has become an attractive market for global franchise brands. Of course, international investment policies still present challenges in many South American countries.

This influx of international brands introduces new products and services to the region and fosters competition and innovation within the local franchise market.

Another key trend in the South American franchise industry is the rise of digitalization and ecommerce. As internet penetration rates continue to rise across the continent, consumers are increasingly turning to online channels for shopping and entertainment.

In response, South American franchises are investing in ecommerce platforms, mobile apps, and social media marketing to reach and engage with customers digitally. This digital transformation enables franchises to expand their reach beyond physical storefronts and provides valuable data insights for personalized marketing and customer relationship management.

Sustainability and ethical practices are also emerging as essential considerations for South American franchises. With growing awareness of environmental and social issues, consumers demand more transparency and accountability from the brands they support.

Europe

The European franchise industry is navigating through various trends and regulations that are shaping the way franchises operate. Changing working dynamics, global expansion, and technological adoption all align with what we see in other core regions.

But there are also some trends unique to Europe currently:

• Regulatory Environment in France and the Netherlands: In France, franchising isn’t regulated under French law, but certain practices, such as trademark registration and the provision of pre-contractual information documents, are required. On the other hand, the Netherlands has introduced a new Dutch Franchise Act, making it one of the most regulated countries in the world for franchising. This act seeks to balance the dynamic between franchisors and franchisees by requiring disclosure documents and informing franchisees of any intended amendments to the franchise agreement​​.
• Franchise Marketing Trends: The need for accurate multichannel campaigns is growing, with franchises expanding their visibility across various platforms. Artificial intelligence (AI) is increasingly used to streamline operations and make informed decisions, impacting marketing strategies. Additionally, automation and personalization are becoming more critical for franchises to stay consistently connected with customers. A systems approach to franchise marketing is adopted to ensure brand consistency and eliminate channel inefficiencies​​.

Asia

The Asian franchise industry is also experiencing significant changes driven by technological advancements and shifts in consumer preferences.

Here are some of the key trends:

• Technological Integration and Virtual Experiences: Franchises increasingly adopt virtual and augmented reality technologies to offer immersive customer experiences. This trend reflects a broader shift towards digitalization, with franchises utilizing technology for remote work, hybrid business models, and global expansion​​.
• Plant-Based Revolution: Asia’s food and beverage sector is experiencing a surge in demand for plant-based options, with a significant shift towards sustainability and health-conscious choices. This trend is transforming the food scene and contributing to a more environmentally friendly and ethical industry​​.
• Fusion Flavors: The rise of fusion flavors is advancing culinary creativity. Chefs mix ingredients, cooking methods, and spices from various cultures to create unique and exciting dishes. This trend celebrates culinary diversity and offers consumers innovative dining experiences​​.
• Health and Wellness: There’s an increasing focus on health and wellness, with consumers seeking food options that are tasty, nutritious, and beneficial for their overall well-being. Functional foods and ingredients that offer health benefits are becoming more popular, driving changes in menus and eating habits across Asia​​.
• Sustainability and Ethical Sourcing: Environmental consciousness and ethical sourcing practices are becoming more critical. Consumers are interested in how their food is produced and prefer options that minimize environmental impact and support fair labor practices. This is leading to closer relationships between franchises and local producers and initiatives aimed at reducing waste and promoting sustainability​​.

These changes illustrate how the average consumer interacts with businesses—franchises included—in Asia.

Africa

One major trend is the emergence of homegrown African franchise growth, domestically and internationally.

With Africa’s growing population and rising middle class, there is a growing demand for consumer goods and services across the continent. Local entrepreneurs are seizing this opportunity by developing franchise concepts catering to African consumers’ unique needs and preferences.

From innovative retail concepts to hospitality ventures and service-based businesses, African franchise brands are making strides in establishing their presence within their home countries, neighboring markets, and beyond. This trend promotes economic growth and job creation and fosters a sense of pride and empowerment within local communities.

Like in all other major markets, a growing focus is also on sustainability and social impact within the African franchise industry. With environmental conservation and social responsibility gaining traction globally, African franchises increasingly incorporate eco-friendly practices and ethical business principles.

A few other trends to keep an eye on:

1. Personalization of Customer Experience: Franchises are focusing on providing personalized experiences to customers, utilizing AI, machine learning, and data analytics. This approach not only enhances customer satisfaction but also builds stronger brand loyalty​​.
2. Niche Market Exploration: Entrepreneurs are venturing into niche markets, offering specialized products and services that cater to specific consumer interests or demographics. This strategy is allowing franchises to carve out unique spaces within the industry​​.
3. Diversity and Inclusion: Successful franchises increasingly prioritize diversity and inclusion in their operations, marketing strategies, and product offerings. This focus on inclusivity is helping brands connect with a broader audience and foster a positive community impact​​.

These trends illustrate the evolving dynamics of the African franchise industry, which is driven by shifting consumer preferences and a growing emphasis on sustainability—and the new opportunities that these trends bring.

Australia

Health and wellness franchises are officially booming in Australia.

With an increasing awareness of the importance of a healthy lifestyle, Australian consumers seek franchises that offer products and services aligned with their wellness goals. This trend is particularly evident in the food and beverage sector, where franchises are introducing healthier menu options, organic ingredients, and plant-based alternatives to cater to changing consumer preferences.

Sustainability and digital transformation mirror importance globally as well.

The Australian franchise industry in 2024 is characterized by a shift towards economic cooling, which leads to slower decision-making and a focus on fundamental business operations.

Franchisors prioritize employee retention and explore “back to basics” approaches, emphasizing sales, service quality, margins, and training. There’s also an increased focus on storytelling in marketing and a return to traditional marketing methods amid the saturation of digital content.

A strategic emphasis on multi-unit expansion and the influential role of AI in enhancing efficiency and customer service are key trends. The potential impact of joint employment regulations and the significant role of women in franchising are also highlighted as crucial factors shaping the industry​​.

Fibrenew has a home for new and experienced franchisees the world over

Fibrenew offers a low-cost, proven model with minimal barriers to entry and a formula for success suitable for even brand-new business owners.

We have successful franchisees worldwide, and there are always new territories and countries from which we’d love to welcome new success stories to the Fibrenew family.

Check out our Franchise Information Report for everything you need to know. Bon voyage!