What’s Hot and What’s Not in Franchising Post-Covid

Certain industries are coming out of the pandemic mess with much more upside and a longer runway than others. While certain sectors did well during the pandemic (i.e., pizza take-out and delivery), you probably shouldn’t expect those lofty numbers to continue.

Furthermore, don’t expect something to come roaring back just because it did well in 2019. Be careful with your “What’s Hot and What’s Not” assumptions.

And remember, Great Investment Results = Right Brand, Right Investor, Right Territory

Influencing Factors Moving Forward

The digital economy is on fast forward

Digital marketing, networking, customer interactions, learning and AI, etc.

Mobile phones are the dominant device, which means your business needs to be mobile phone friendly.

Anything that can easily get automated to increase productivity and/or reduce cost is happening.

Millennials are the new Baby Boomers

Millennials will drive the new economy and much more.

Millennials are more tech literate and expect to interact 24/7 with a business.

Baby Boomers are seniors.

More texting and video conferencing than emailing or calling.

Streaming versus cable.

Social, emotional moats are more important.

Many sectors benefit from historically low interest rates

Residential real estate is hot.

Stocks and P/E ratios are at all-time highs.

Cost of capital to start a new business or expand a business is low.

The pandemic changed the mind set for many seniors
(especially ages 70+) and people with serious comorbidities

The “fear” index for many will remain high as news of variants and slow vaccinations plague the world for the next year or more.

Expect anxiety with these topics–crowded spaces, sanitation, air filtration, retirement/nursing homes, long flights, cruises, movie theatres, indoor dining, misinformation, etc.

Top Franchise Industries and Sectors

Residential Real Estate Services

Homeowners have a great deal of equity in their homes. Prices have gone up significantly over the last few years. Homeowners are investing in upgrades, remodels, and repairs.

Whether renting long term or as a vacation rental, investment properties almost always do better with a professional property management company.

Strong, recurring revenue models preferred (weekly or monthly services).

Painting, cleaning, kitchen/bath upgrades, garage facelifts, roofing and gutters, flooring, window treatments, HVAC, plumbing-, insulation, outdoor concrete and decks, irrigation, bug and critter control, and property management.

At-Home Services for Seniors

Seniors want to stay in their own homes for as long as they possibly can. Services that make this possible did well before the pandemic, and will do even better as we get back to a new normal.

Nursing homes received a lot of well-deserved, bad press during the pandemic. Look for seniors to avoid these places altogether, and then when necessary, get help choosing the good from the bad.

At home care services, senior friendly remodels/improvements, pain relief and physical therapy, and help in choosing best care solutions.

Targeted Retail Services

There is pent up demand for personal care. We’re craving some TLC and social interaction.

Exceptional digital models with “rock star” providers (i.e., instructors, beauticians).

Strong, recurring revenue models preferred (repeat clients, multi-tier memberships).

Lashes, facials, massage, hair removal, and boutique fitness.

Fitness Programs for Kids with Life Skill Programs

Fitness is a challenge for families. Kids spend an enormous amount of time viewing screens—mobile phones, computers, TVs. Schools have increasingly been dropping fitness programs.

Childhood obesity has been on the rise for the last decade.

Parents are also looking for more confidence building, socialization activities for their kids.

Swimming, martial arts, speed and strength programs targeting teenagers that are sport specific, and summer camps.

Contact me to discuss franchise brands that match you and your goals.

Remote Work and Franchise Ownership

The nature of remote work will be extremely interesting to follow over the next 6-12 months. Of course, we all know that remote work during the pandemic wasn’t really remote work. Right?
Looks like employees are in for some surprises as we approach a new normal

1) employers will not be as accommodating; and

2) a change in geography may help with some of life’s issues, but more often than not, many of the old issues return and new one’s surface.

The franchising world has its own version of “remote” work investment opportunities. The best of these opportunities are semi-absentee (flexible, ~15 hour workweeks), and they allow the owner to keep their fulltime job if they would like.

Of course, just like all remote work, there is a need to engage in-person periodically with your team.

Contact me to identify the best “remote work” opportunities available in your backyard.

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