806,270 – this is the number of franchise establishments in the United States recorded last year, 2023. Franchising has long been a powerful engine of economic growth and entrepreneurial opportunity contributing of over$800 billion to the US economy annually.
As we navigate through 2024, this dynamic business model continues to evolve, reflecting broader economic shifts, technological advancements, and changing consumer preferences. Here’s a snapshot of the latest franchising trends to facilitate informed decisions by entrepreneurs and business owners.
Revisiting Franchising in the Last Year
2023 was a year of resilience and innovation for the franchising industry. Despite facing challenges of recovering from the COVID crisis, economic uncertainties, and shifting market dynamics, many franchises adapted quickly, leveraging technology and diversifying their offerings.
According to the International Franchise Association (IFA), the franchise sector grew by 2.2% in 2023, and is further expected to grow by 1.9% in 2024, contributing significantly to the national economy. Let’s explore the trends that will shape the success of franchises this year and where education franchises stand in this growing industry.
Top 4 Franchising Trends of 2024
1. Technological Integration and Automation
Technology continues to revolutionize the franchising landscape. Artificial intelligence (AI), machine learning (ML), and automation have been adapted across various franchise operations. From chatbots handling customer service inquiries to AI-driven marketing strategies, franchises are leveraging these tools to enhance efficiency and improve customer experiences.
According to an article published in Forbes Advisor, the total impact of AI on the GDP of North America alone is estimated to be approximately $3.7 trillion, around 14% of the GDP. This shows the extent of growth of AI and how it is an integral part of not only franchises but also industries worldwide.
2. Diversity and Inclusivity
Diversity and inclusivity have become central themes in the business world, and franchising is no exception. In 2024, there is a growing emphasis on creating more inclusive franchise opportunities that reflect the diverse fabric of American society. This trend is not just about social responsibility; it’s also good business sense.
Franchisors are actively seeking to diversify their franchisee base by providing opportunities to underrepresented groups, including women, minorities, and veterans. For example, franchises like 7-Eleven and Dunkin’ have launched initiatives to attract and support diverse franchise owners. UCMAS Canada was recently awarded the Diversity and Inclusion Champion 2024, by the Canadian Franchising Association recognizing a diverse franchisee base that led to innovative ideas and stronger community connections.
3. Eco-Friendly and Sustainable Practices
Sustainability is no longer just a buzzword; it’s a necessity. Franchises are increasingly adopting eco-friendly practices to meet consumer demand for sustainable products and services. This includes everything from reducing single-use plastics and implementing energy-efficient technologies to sourcing products from sustainable suppliers.
For instance, Subway has a sustainability program that helps franchises and suppliers reduce their energy usage and emissions with technological advancement.
4. Personalized Customer Experiences
Personalization is key to attracting and retaining customers in today’s competitive market. Franchises are increasingly using data analytics to understand customer preferences and tailor their offerings accordingly. This trend is particularly evident in the food and beverage sector, where personalized menus and loyalty programs are becoming standard practice.
A survey by the National Restaurant Association found that consumers are more likely to visit a restaurant that offers personalized promotions and food recommendations.
Education Franchises: Sustainability and Growth Prospects
Education franchises have emerged as significant players in the franchising industry, as they demonstrate resilience and potential for substantial growth. With the increasing emphasis on lifelong learning and skill development, these franchises cater to a broad demographic, from young children to adults seeking career advancement. The future looks bright for education franchises, with several growth drivers contributing to their expansion.
Adaptability to Digital Learning
The COVID-19 pandemic accelerated the adoption of digital learning platforms. In 2024, education franchises continue to leverage this trend by offering hybrid models that combine in-person and online instruction. This adaptability not only broadens their reach but also ensures they remain relevant in an increasingly digital world.
Focus on STEM and Coding
There is a growing demand for STEM (Science, Technology, Engineering, and Mathematics) education, driven by the need for skills in these areas in the modern job market. Renowned coding franchises like the OBOTZ robotics and coding program , are witnessing significant growth and expansion.
The value of the global ed-tech market in 2021 was around $106.46 billion, From 2022 to 2030, this market is expected to grow annually by 16.5% and is expected to expand up to $ 404 billion in 2025. With such a diverse and promising market, STEM and coding education is definitely one trend that has taken the education franchise industry by storm.
Increasing Parental Investment in Education
Parents are increasingly willing to invest in their children’s education to ensure they have a competitive edge. This trend is driving demand for tutoring services, test preparation, and enrichment programs like math programs, abacus math programs, child development programs, and more.
Lifelong Learning Opportunities
The concept of lifelong learning is gaining traction as individuals seek to continuously upgrade their skills. Education franchises that offer courses for adults, such as language learning, skill development, or professional certification programs, are tapping into this trend. This diversification not only provides multiple revenue streams but also ensures long-term sustainability.
Global Expansion Opportunities
While the primary focus is on the U.S. market, education franchises have significant opportunities for global expansion. Emerging markets, increasing emphasis on education, and adaptive business models present lucrative opportunities for franchises to thrive.
Technological Advancements
Advancements in educational technology (EdTech) are enabling franchises to offer innovative solutions such as virtual classrooms, AI-driven personalized learning, and accessible education. These technologies not only enhance the learning experience but also allow franchises to scale their operations efficiently.
The franchising landscape in the United States is vibrant and evolving, with 2024 poised to bring exciting opportunities and challenges. From advanced technologies to sustainable practices, franchises are continuously adapting to meet the changing demands of consumers. Education franchises stand out for their potential to drive long-term growth and sustainability.
If you are an entrepreneur considering entering the franchising world or expanding your existing operations, understanding these trends is crucial. UCMAS has over 2,400 centres worldwide with over 3 million children enrolled and thriving. Join the UCMAS franchising revolution and be a part of a business that strives to make a difference in your life and the children in your community.
