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2018 Franchise Industry Recap

A Year in Review – 2018

As unemployment continued to decline, individuals started to focus more on franchise opportunities that would allow them to keep the safety and security of their current job and own a franchise. This is known as “semi-passive”, a manager is put in place to run the day-to-day instead of the franchise owner.

Towards the end of the year, the stock market dipped and we continued to see the trend of “semi-passive” opportunities. People were looking to diversify and invest in themselves rather than tie their assets to the stock market. 

A few of the opportunities that stood out were:

  1. Nutrition & Weight Loss opportunities that focused on science and genetics. There was a large demand in this industry due to the declining innovation of the current/older brands.

  2. Boutique Fitness continued to increase as millennials (and younger) were looking to allocate a substantial portion of their budget to living a healthy lifestyle. These customers were willing to pay a premium price for fitness that focused on a sense of community and a unique experience. In many cases, customers treat these fitness classes as a big part of their social lives.

  3. We saw large growth in Women’s Beauty Services such as hair coloring, eyelash extensions, and manicure/pedicures.  Interestingly, nail salons have been around for over 30 years but there has yet to be a national brand that provides consistency, cleanliness, and friendliness. In 2018 as we saw a few unique brands emerge here. 

For people who did decide to make a full-time change and leave their job, we saw a lot of success in the Residential & Commercial Services industry.  These options are typically lower investments because they don’t require the build-out and construction requirements of a storefront. 

We also saw good growth in the restoration sector.  The weather caused a lot issues between hurricanes, hail storms, etc.. Unfortunately there is a lot of demand for fire, smoke, water and mold damage repair. This is a great recession resistant industry if you are willing to work hard and have an empathetic nature.

NEXT: Top Franchises Opportunities for 2019

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