Looking back at 2022 and building on the outlook for 2023
2022 review on franchising and a look at the year ahead for a growing, stable industry.
After being in the franchise industry for over 30 years and experiencing its highs and lows, the past three years have been one of the most challenging. That said, 2022 was still a strong comeback year for the franchise industry.
Throughout the year, we saw more franchise brands continue to grow and return to normal. Some industries that excelled at franchising included fast causal restaurants, home improvement concepts, personal services, education, and pet-related businesses. Franchise brands in these categories, as well as many others, have helped boost the United States economy over the past year.
While 2022 turned out to be an impressive year for the franchise industry, the issues remain. Some challenges include supply chain and distribution issues, rising labor costs and the ability to source labor, and combating rising rates and inflation. Despite this, the International Franchise Association (IFA) predicted that by the end of the year there would be a net gain of 17,000 new franchise locations, bringing the total number to 792,000 locations.
Looking forward to 2023 – as we exit 2022. The new year is great for starting a new franchise … [+]
Towards 2023 – Happy New Year
The coming year will bring new opportunities in franchising as it is a business like no other. It enables individuals to have their own business in any of over 300 different industries while following a proven business model.
As you prepare for 2023, it’s important to consider which path is right for you. Is it your time to become a franchisee? Are you ready to become an entrepreneur? The franchise industry will continue to develop next year while regaining control of the market.
Your journey in franchising starts here
Despite the economic uncertainty as the new year approaches, there’s no reason to believe franchising won’t continue to grow. Although there are doubts in some market segments, the franchise business model proves to be reliable. So for those who are considering starting a new business, rest assured that you will get support from the franchisor. And with other franchisees running the same type of business under the same name, you’re not alone.
Overall, franchisors have built a sustainable business model and established relationships with their franchisees, working together over the past three years to not only survive and sustain, but also grow. As we reach the end of 2022 and get ready to enter 2023, the franchise industry continues to thrive, allowing franchisors and franchisees to have overall long-term economic growth. Franchising is one of the most exciting industries to join and now might be the right time for you too.
