The franchising of the 21st century is barely comparable to the beginnings of the first franchise concepts, which are now 70 years and older. Highly dynamic markets, large-scale digitization and the emergence of new organizational concepts shape the franchising of today. This has led to the development of three major trends in recent years, which already provide insights into the future of franchising and are of great importance for franchisees and franchisors. All are said to have a positive impact on franchising in general, so the quality of this attractive business will continue to increase in the long term.
Franchising goes global: the trend of internationalization
Originally from the USA, the franchising concept has become widespread in many parts of the world. Over 400 US franchise companies now have international offices outside of their country of incorporation. This trend, for example, affects the HR behavior of franchisors: Many franchisors who want to expand abroad, for example as part of a master franchise concept, are largely looking for potential franchisees in the respective destination country. These have valuable cultural and linguistic knowledge, so that establishing a foreign franchise is often easier for them than for candidates from the country of origin.
Conversely, this trend is also expanding the selection of potential franchisors for aspiring franchisees, as it is increasingly possible to take advantage of offers from abroad. This way, franchising contributes significantly to the internationalization of labor markets and promotes both the economic and cultural diversity of societies.