Six franchise industries offer a promising outlook for revenue growth and number and dispersion of franchise establishments, according to industry research firm IBISWorld.
“Overall, franchises are expected to continue stealing market share away from independent businesses and increasing their total economic output, which currently stands at 4.4 percent of the total private sector,” said IBISWorld industry analyst Eben Jose.
New Car Dealers - Coming off a nearly 5.0 percent annual decrease over the past five years, new car dealers that operated under the franchise model have turned the corner and are expected to grow steadily going forward. IBISWorld estimates that the
Sandwich and Sub Stores - Sandwich and sub store franchises, such as Subway, have experienced moderate growth over the past five years and are expected to continue to grow at a steady pace, despite facing considerable competition from independent businesses. In the past five years, buying local and food truck trends have taken off, putting even more pressure on franchises to adapt. But, over the next five years, IBISWorld expects
Pharmacies and Drug Stores - Despite heavy and changeable government regulation, pharmacy and drug store franchises fared well during the recession and will return to prerecession growth rates in 2012. A key driver for the industry has been the widespread adoption of generic drugs. IBISWorld expects
Gas Stations with Convenience Stores – While many gasoline companies are starting to buy establishments back from franchisees, breaking into this industry is still possible. Shell and Exxon Mobil are two of the largest gasoline distributors in the world, and both still use the franchise model for distribution. Despite lower-than-average growth during the recession, the $331.7 billion
Supermarkets and Grocery Stores - Despite high external competition from convenience stores, big-box retailers and warehouses,
In-Home Senior Care - The Baby Boomer generation is growing older and, as a result, in-home senior care franchises have been flourishing over the past five years. Going forward, the trend toward “aging in place” is expected to strengthen and, as a result, the $6.0 billion