From year to year the franchise industry changes as high demand develops for new trends as they arise. These trends can be found in different areas such as food, health care and technology. New rules are often set, that have a significant impact on your business. Get an idea of the most popular trends in franchising and create a useful overview!
1. Health Insurance for Employees
Due to these improvements in the health reform law, it is now require of all companies having or exceeding 50 or more employees to offer an employer-sponsored employer health insurance. Even as a franchisor, you must insure your franchisees. This is a major cost, which is why many franchisors will reconsider an expansion of their business. You should therefore take a closer look at the health reform laws to figure out, whether your company or franchise is legally obligated to insure its employees. The last thing you would want is to get a hefty monetary fine.
2. Sustainable and Organic foods
The second trend, which is very much in demand in 2016 is within the restaurant franchising business. Franchisors want to banish cheap and unhealthy foods such as corn syrup or foods that are not organically produced from their business and switch to more sustainable and healthy food suppliers. The prime example here is the popular fast-food chain McDonald's: within the next 10 years, the chain wants to exclusively work with free trade suppliers. Amongst others, it's also Subway who joins this trend this year: here is where exclusively antibiotic-free meat will be offered. If you are in the business of Restaurant Franchising, be sure to follow this trend! It is worthwhile not just for you, but you'd also be contributing to your customers' health! By doing so, you will also ultimately be able to attract numerous health-conscious customers and gain new audiences for your products!
3. Small branches
The property required for business operations causes the largest financial input for franchisors. Meanwhile there are smaller offices trending, particularly popular are also drive-through locations. An attractive option is also offered at large shopping malls where numerous small office space are rented out. Think i.e. of Starbucks or Subway! If a first-class and high-quality property exceeds your budget, you should look for smaller venues and embark on the search for partners with whom you can work.
4. Chip cards are on the agenda in the near future
Due to a new regulation, which was established in October last year, the use of new credit card terminals is now required in all businesses. Those terminals must have access to the new EMV chip cards. According to the regulation, however, no penalty is due for companies, whose credit card terminals do not have such access. Failure to comply with this standard does have consequences for everyday work in your franchise business: when transactions show a credit card fraud, your bank or card processing operation will no longer bear the costs. This means that the responsibility lies solely with you. Therefore, you should promptly establish the new credit card terminal. Do not risk your business by not being able to accept the new credit cards! Follow the trend and use the new credit card terminal to continue to secure your company's success!
These are the trends of the year, that you should pay close attention to! In the franchise industry, you will be more successful if you are focused around the trends for 2016!