Franchises that Work

Franchises that work

Eric Schechterman

As a franchise consultant, I’m often asked, “What is the hot, new franchise category?” While some say fitness or food or pet care or education and so on, for me, the hot franchise category is the one that allows you to make the most money over the long haul. To that end, I advise clients to look for franchises that are Amazon- and recession-proof.

While 100-percent foolproof businesses simply don’t exist (though wouldn’t that be nice?), certain franchise models have proven to succeed in all economic climates—and in the face of fierce online competition. Believe it or not, there are a few brands and certainly services that aren’t available via Amazon delivery. These products and services promise to remain steady in tough times and grow in good times, which, by the way, makes them the hot franchises for me.

DEMOGRAPHIC-FOCUSED BUSINESSES

These franchise models target a specific group as primary customers. The most commonly-targeted groups are seniors, children, and believe it or not, pets. Studies show that no matter what the economy is doing, people still continue to spend the same money (or more) on their elderly parents, their children, and even their four-legged friends. For seniors, in-home senior care and assisted-living placement services are thriving. Preschools and daycare centers, in-home tutoring, even swim schools and enrichment programs are all doing well. Meanwhile mobile grooming, dog daycare (and boarding) help keep the pet category booming.

ESSENTIAL SERVICES FRANCHISES Franchise models that offer a product or service that is considered a necessity are referred to as essential services. Take haircuts, for example. Regardless of the economy, hair will always grow and will always need to be cut.

Another example is home services. Homes need inspections, gutters cleaned, chimneys swept and all kind of repairs and upkeep, no matter what the economy is doing.

BUSINESS-TO-BUSINESS (B2B) FRANCHISES

Businesses that provide services to other small businesses are known as B2B franchises. According to the SBA, there are almost 29-million small businesses in the U.S. and almost 65 percent of them have four employees or less. The thing is, these small businesses still have the same needs as big businesses. Small businesses need IT support, staffing services, marketing and website support. Since they can’t afford to hire in-house staff, they outsource these services. Professional B2B franchises are in high demand because of the growing needs of these small businesses. They’re also very attractive options to potential franchisees because they’re owner-operated and carry a low investment.

As part of FranNet of Boston, Eric Schechterman works closely with clients to understand their goals, values, lifestyles, and interests. He coaches them through the franchising process and helps determine if franchising is a good fit. For more information, contact Eric at eschechterman@frannet.com