3 Ideas to Help You Find Your Own Niche Franchise
Suppose you're considering options for starting a new business. In that case, an excellent place to start is to look at opportunities for opening a franchise in your area — identify niches that could fit your interests, values or strengths, your financial circumstances, and market demand.
The main reason why purchasing a franchise might be lucrative is that the upfront cost and royalties grant you the opportunity to use a recognized brand and business model.
In addition to premade marketing collateral and high brand awareness, you typically get extensive business support from the franchiser.
However, starting and opening a franchise business requires a substantial upfront investment. Depending on the brand and real estate needs, startup franchise fees might range from $20,000 to $1 million, according to a post by Nerdwallet.
Consider your own financial situation and net worth when deciding what kind of franchise you might be able to acquire, says the article by Randa Kriss.
Further, narrow your franchise idea search by industries and types of businesses that interest you or those that match your particular skills. Check whether the franchises offer opportunities in your geographical area, as some franchises only operate in specific locations, i.e., medium to larger cities.
According to the U.S. Census Bureau, there are approximately 498,234 franchises in the country, accounting for 11.5 percent of all businesses.
Most franchise opportunities fall into the restaurant category, the bureau added. However, the agency notes that gas and convenience stores, car dealerships, fitness, real estate, and hospitality sectors also make up a sizable chunk of the franchise sector. The bureau estimates there are as many as 300 industries in the franchise sector.
As you peruse franchises that might match your interest, skills, location, and financial requirements, consider these 3 niches of opportunity.
Green. If the environment and sustainability are important to you, search for franchises that sell or produce green products and services or businesses with a proven reputation for eco-friendly practices.
Businesses that use recycled or organic materials, conserve energy, or promote sustainable resources may be good-fit opportunities for you.
With predicted revenues of $13.7 billion this year and over 51.09 billion by 2029, the green and sustainability sector is seen as a growth market, according to a recent article by Small Business Trends.
"This growth is largely due to increased consumer demand for environmentally friendly and sustainable products," the article stated. "Key areas of growth are expected to be in green home solutions, safer alternatives to harsh chemicals, and other environmentally friendly products and services."
Niches within Food Sector. The broad U.S. franchise food industry offers hundreds of subcategories or niches, from popular burger, chicken, and pizza businesses to franchises specializing in Asian or Mexican food, yogurt, ice cream, or bagels.
There are also grab-and-go franchises or niche businesses themed to the meal-time of the day, such as breakfast-only menus and limited hours of operations.
The fast food chicken market segment is estimated at $40 billion, according to statistics shared by IBIS World. The segment has grown 9.6 percent per year on average between 2017 and 2022, says IBIS World.
Senior Care. Demographics point to continued demand for senior-care franchises. Forecasters estimate there will be about 70 million people older than 65 by 2030, or one in five Americans, says a post by the AARP.
More people will need caregivers, and the AARP says an overwhelming majority of them prefer to receive care in their homes. According to U.S. Census Bureau statistics, the number of people 85 and over will triple by 2060.
The demand for in-home senior care services will soar as a result of the aging population and the proportion of seniors choosing to stay in their homes and close to their families since it is more cost-effective to do so, says a post by the International Franchise Association.
According to one projection, the demand for in-home care aides will increase by 29% through 2024, according to the IFA.