So you’re ready to franchise a small business, but you’re left wondering which industry to enter. There are dozens to choose from.
With 99.9% of all companies in the United States being small businesses, the field is stacked. Certainly, there is a lot of competition. Getting your business just right will be the key to your success.
You may be inclined to think of fast food when you think of franchising. After all, who hasn’t seen what seems to be a Chipotle franchise or a Panera franchise (which aren’t actually franchises at all, but are corporate-owned locations) dotting our cities and towns? But familiarity and success aren’t always linked.
To maximize your franchise potential, think outside the box. Fast casual franchises might be easy to envision. But something more novel like a pet grooming franchise is much easier to launch and has a greater potential for success.
Market Share and Competition
While something like a Panda Express franchise might be an obvious play, look deeper. There are dozens of offers on franchise opportunities out there. And many of them go beyond fast casual franchises.
According to the United States Census Bureau in 2012, there were 122,042 limited-service restaurant franchises in the United States. Here, “limited service restaurant” would be defined as a fast food restaurant dining experience with quick turnover.
As an example, a Shake Shack franchise, a Panda Express franchise, and more. Essentially, a business model where customers order menu items at the counter. This franchise restaurant concept is also commonly referred to as “quick service restaurant” or “QSR.”
This number vastly blows away the other franchise types on their list, including:
- Gas stations with convenience stores: 32,845 (as a fun fact, 7-11 is the largest franchise network in the world, with 78,400 locations opened worldwide!)
- Fitness and recreational sports centers: 7,340
- Beauty salons: 6,326
Now, imagine your average American strip mall. Your mind’s eye is likely imagining exactly what’s on that list: fast casual franchises, gyms, salons, and more. All of these industries are well represented in the franchising space, which means competition. And competition means your potential Panera franchise or Chipotle franchise will have to work that much harder for customers.
Finding Growth Opportunities
While fast casual franchises like a Shake Shack franchise may be overplayed, not all franchise opportunities are. Consider the pet grooming industry. The U.S. Bureau of Labor Statistics noted it had the potential to grow 11% between 2017 and 2023. And as a fun fact, many businesses noted in that study are corporate-owned, not franchised. This means there is enormous growth in an under-represented corner of this market segment.
When compared with a fast casual franchise, the numbers make it clear. Growth is simply better than oversaturation for franchise owners.
Launch a Franchise that Works
Keeping a fast casual franchise going is anything but easy. Consider many of the common headaches that come with fast casual franchising:
- Higher rent costs when compared with smaller retail locations
- Large staff on payroll to keep operations moving
- High quantity of perishable products that require rotation and can lead to wasted expenditure
- And more.
Truly, fast casual franchises come bundled with many detractors that make them considerably harder to manage, when compared with retail locations.
Instead, consider franchising a low-competition and high-reward business like pet grooming. Woof Gang Bakery runs a successful network of pet service franchises throughout the United States. When compared with fast casual franchises, our franchise locations boast easy-to-manage aspects, such as:
- Low overhead costs and low rent thanks to small footprints
- Low equipment costs
- Commission-only model for controlled revenue
- A full support network for every one of our franchise owners
- And much more.
Learn more about our stress-free franchise process!