As the economy is transforming, retailers are forced to turn to new franchise models in order to adapt to the present situation. A research made by iFranchise Group has found that in attempt to stay competitive, retailers rely on innovative business structures, as well as original services and products. Here are the top trends in retail franchising outlined by the study.
Real Estate Flexibility
The modern property environment requires franchisers to be very flexible if they want to succeed. Franchisees are now getting used to the thought that they may need to change the location of their business at almost any time. As a result, most of them are coming up with alternatives that even include kiosks. In addition, today they are more thoughtful when it comes to matching their franchise agreement terms with those of their lease. This is actually a really logical practice. However, not many franchisers used to take it into proper consideration.
Specialty Retailers Turn to Franchising
More and more specialty retailers are starting to see franchising as a new business possibility. No matter what product they offer (fashion items, drinks, food, cleaning products and etc.) these retailers are now greatly relying on franchising. That is especially the case when it comes to product distribution. Franchising helps them reach a wider audience, as well as to have control over their costs. Moreover, an impressive number of retailers use franchise to expand their business abroad.
The “green” is taking over the world and retail franchise models make no exception. The modern franchise systems tend to focus more on environmentally-friendly products, organic food, as well as product recycling. Franchise consultants now offer models which are “green” in their bigger part or which at least offer some eco solutions. But apart from saving the planet, green franchise in retail also has the power to attract more consumers. That is due to the fact that people today are increasingly becoming more environmentally-conscious and are searching for businesses that can offer them that.
Here we won’t discuss the rise of social media because this is not new in franchising. Instead we will talk about the use of online multimedia technology in business franchising models. This type of technology will find a place in franchising thanks to the great training possibilities it offers to businesses. Today, there are various online training platforms that provide both employee and franchisee training. An increasing amount of companies are already using this model in their everyday activities. Through this training, franchisees’ staff can acquire a better knowledge on consumers, products, services and features.
The changing economy requires some changes in franchise models. Businesses which fail to see that will face some unpleasant challenges.