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Identify the perfect franchise for you! Take our short quiz Take our free franchise quiz!
Identify the perfect franchise for you! Take our short quiz Take our free franchise quiz!

What Industry Should I Explore In 2020?

It’s already a month into the new year and 2020 new year resolutions aside, it is a good time to take a look at your business plans for the year, whether you’re looking to start a new business or buy a franchise. Many budding entrepreneurs still have the big question of which industry has the most potential for them to dive into looming over their heads. If you are one of them, fret not - take a look at some of these insightful trends we have discovered.

Travel Industry

Despite the countless number of entrepreneurs who have tried to get a slice of the travel industry pie and have failed, the travel industry still has proved to be one of the most burgeoning ones. Wonder what’s driving the undying interest in this sector? Consumers are attempting to understand this fragmented industry, and are constantly thinking of innovative solutions to provide a structure for something so profoundly unstructured. The biggest reasons in this trend include the rising popularity of travel content and sustainable travel ideas on social media, and more importantly, the willingness of customers to spend on getting the best experience there is to offer. With increased accessibility to exotic locations around the world being discovered, travel is definitely an industry to keep your eyes on.

Health and Wellness

There are a host of health and wellness franchise opportunities in the booming health and wellness sector. Customers are becoming increasingly conscious about their diets, variety of exercises they are doing, the type of clothes they work out in and even their post-workout habits. Franchises in this sector definitely have a dual appeal with options such as ClassPass, boutique workout classes and competitive gym memberships that target the consumers who want to maintain a healthy lifestyle. This also extends into the post-workout, wellness concept, with beauty and wellness studios offering cryotherapy and more. Not only do the consumers in this industry demand for a variety of experiences while attending workout classes, but they are also willing to pay a premium for it and their interest in looking and feeling good is unlikely to wane anytime soon.

Residential Services Sector

Handyman services such as plumbing and electrician services may sound like one of the most boring industries to be in, but this category of franchises is hotter than ever. With the increasing popularity of having dual-income families, many consumers are looking to outsource the jobs they used to do on their own. Greater financial stability and the need for convenience has led to a huge demand in this sector. With the amount of time and hassle saved with the option to outsource these maintenance services, this industry has attracted many homeowners. Thus, as boring as it sounds, the residential services sector is definitely one that you should look into this year if you’re hoping to own a profitable franchise.

While we have discovered some of these top trends from our vast interactions with budding entrepreneurs and potential franchisees, don’t let this be the be-all-end-all to your investigation. Continue to look around and evaluate the lifestyle that you hope to achieve, in order to figure out what kind of business or franchise is the most suitable for you. Determining the potential of an industry and business is crucial, but let’s not discount the importance of your personal goals as well as a brand’s overall health (which can be found in item 19 in the Franchise Disclosure Document!).

If you are still lost, perhaps you might want to give our franchise matching quiz a go. We’ve got thousands of franchises that could give you a better idea as to what kind of business you should start this year. 

Rachael Annabelle is the Marketing Analyst at FranchiseHelp. Her dream franchise involves a blend of photography and travel.

Quantifying Yelp's Impact on the Restaurant Industry

Luca studied the effects of Yelp ratings on the revenue of restaurants and discovered several interesting findings. Studying the relationships of restaurants' revenues to their Yelp reviews in Seattle over a period from 2003 to 2009, he found a significant relationship between a restaurant’s average rating and revenue. One star’s worth of improvement on Yelp leads, he found, on average to an increase of between 5 and 9 percent in revenue. The average rating is more important than the review, as many Yelp users are overwhelmed by the sheer number of reviews on manyrestaurantpages and find it easier to consult the star rating. Luca also found two features which exacerbate the effect on revenue Yelp has. First, the more reviews a restaurant has, the more impact an increase in its Yelp rating will have on its revenue. Second, the more reviews by Yelp “elite” members, the more impact; “elite” reviews have almost twice as much impact as other reviews.

Breaking Down an FDD

Once you've found a franchise (or multiple franchises) that you are interested, the real research and diligence process begins. You need to figure out whether the franchise you are looking at really makes sense for you from a financial and lifestyle perspective. Your best source of information for all of this is the Franchise Disclosure Document, or FDD.

12 Questions You Must Ask When You Interview Existing Franchisees

Even the most honest and forthcoming franchisor can’t tell you what it’s like to be a franchisee. You should take the time to call existing franchisees and get some candid answers to your questions. Be careful that you don’t get a limited list of hand-picked contacts. It would be a waste of time to talk only to the most successful operators or those who are coached to give the “right” answers. Calling franchisees at random will give you the clearest picture of what you’re getting into. Here are some questions you should ask.