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.
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.
Another trend in franchising is the growing number of women and traditional minorities within franchises. In many parts of the world, migrants, women or physically handicapped people are struggling with major job barriers: Under-training or lack of capital for larger investments often prevent them from attaining higher career levels. Here, franchise concepts can help: franchisors such as Engel & Völkers offer their franchisees extensive training opportunities, which also give lateral entrants and traditionally lower qualified internally the opportunity to gain the necessary knowledge. In addition, many franchisors support their licensing partners in building up financing and provide loan or rental CI material and equipment. This way, franchisors open up opportunities to less financially fortunate, but dedicated individuals, who are therefore able to gain professional grounds and to fulfill themselves within a franchise operation .
Through data networks and global communications services, the exchange of information between franchisors and franchisees has become more efficient than ever before. Faster than ever, centrally optimized concepts can be passed on to license partners or important business information can be transmitted. But that's just the beginning: For franchising, the Internet functions as a high-reach and multi-media advertising platform. Especially young target groups can be addressed this way. On one's own online platform as well as in social networks, the offer of a franchise enterprise can be described in detail and presented attractively, so that the customer receives a comprehensive pre-impression of the services, which are to be expected. In the real estate franchise or other industries, the digital presence can also be expanded to include an online shop with further sales potential.
Digital trends also require a high degree of organizational agility:
Markets, buying habits and customer preferences are constantly changing and are often hard to predict. Watching such phenomena and responding to the right momentum at the right time is what makes up a successful 21st century franchise company.
As a responsible franchisor, Engel & Völkers seeks to give its franchisees around the world the best possible starting position for establishing a successful licensing business. Our real estate franchise stands for first-class networking, fair entry opportunities and maximum flexibility. Each Engel & Völkers franchisee benefits from our international brand awareness and valuable franchiser services. Central marketing and advertising measures, a wide range of training opportunities and efficient home-based real estate marketing software are just a few examples of the numerous benefits that a franchise partnership with Engel & Völkers brings along.
As a franchisee, you want to work with Engel & Völkers to shape the future of the real estate franchise and benefit from unlimited income opportunities in a diversified industry? Contact us today - our colleagues are at your disposal for a personal consultation!