Top Franchise Trends to Watch in 2024

The franchise industry is constantly evolving, driven by changes in consumer preferences, advancements in technology, and shifts in the global economy. As we move into 2024, franchise owners and potential investors need to stay ahead of emerging trends to ensure their businesses remain competitive and successful. In this blog post, we’ll explore the top franchise trends that are expected to shape the industry in 2024.

1. Sustainability and Eco-Friendly Practices

Sustainability is no longer a buzzword—it's a business imperative. In 2024, consumers are becoming increasingly conscious of environmental issues and are favoring businesses that align with eco-friendly values. Franchises that adopt sustainable practices, such as reducing waste, using energy-efficient equipment, or sourcing locally, will likely attract more customers. Additionally, franchises that offer green products or services, like eco-friendly cleaning or sustainable food sourcing, will see growth in this trend.

For franchisees, integrating sustainability into operations is a smart way to appeal to a broader audience while also potentially reducing operating costs through energy savings and efficient resource use.

2. Technology Integration and Automation

The adoption of new technology has been accelerating across all sectors, and franchising is no exception. In 2024, franchises are expected to increase their reliance on automation and technology to improve efficiency and enhance the customer experience. From online ordering platforms in food franchises to AI-driven customer service in retail, technology is streamlining operations and boosting profitability.

For example, many fast-food franchises are investing in self-service kiosks, mobile apps, and delivery systems to meet consumer demand for convenience. Automation in backend operations—such as inventory management, payroll, and marketing—will help franchisees save time and focus on growth.

3. Health and Wellness Boom

The health and wellness sector continues to grow, and franchises in this space are thriving. Fitness, healthy food, and wellness-related services are in high demand as consumers focus on living healthier lifestyles. In 2024, we expect to see even more growth in fitness franchises, like boutique gyms, yoga studios, and personal training services. Additionally, franchises that offer health-conscious food options, such as organic, plant-based, or gluten-free menus, will continue to see strong interest.

If you’re considering investing in a franchise, exploring opportunities in the health and wellness sector could be a lucrative choice, given its growing market and consumer demand.

4. Experiential Franchises on the Rise

In a world saturated with products and services, consumers are increasingly seeking unique experiences over material goods. Experiential franchises—businesses that offer entertainment, adventure, or immersive activities—are expected to gain popularity in 2024. These franchises include escape rooms, virtual reality arcades, cooking classes, and even experiential dining concepts.

The key to success in this trend is offering memorable, engaging experiences that keep customers coming back for more. Franchises that tap into consumers' desire for shared, social experiences are well-positioned to grow in the coming year.

5. Flexibility and Hybrid Business Models

The traditional brick-and-mortar franchise model is evolving. In 2024, we’ll see a rise in hybrid business models that offer more flexibility for franchisees. This includes franchises that operate as both physical locations and online businesses, allowing for a broader reach and reduced overhead costs. For instance, many retail and service-based franchises now offer online ordering, delivery, and virtual consultations.

The shift toward flexible franchise models also includes mobile franchises—businesses that operate out of trucks or vans, such as mobile car washes, food trucks, or pet grooming services. These models allow franchisees to minimize fixed costs while reaching customers in various locations.

6. Multi-Unit Ownership

Multi-unit franchising continues to be a growing trend, especially among experienced franchisees looking to scale their operations. In 2024, more franchise owners will invest in owning multiple units of the same franchise, or even diversify by owning units from different brands. This trend allows franchisees to leverage their expertise across several locations and increase their earning potential.

For those looking to invest in franchising, multi-unit ownership offers the potential for higher revenue and reduced risk by diversifying investments across multiple franchises. It’s a strategic way to grow your portfolio and build wealth in the franchising industry.

7. Emphasis on Franchisee Support and Training

In 2024, franchisees will seek more support from franchisors in the form of training, operational assistance, and marketing resources. The most successful franchises will be those that provide robust, ongoing support to help franchisees navigate the challenges of running a business. From comprehensive onboarding programs to digital marketing strategies, franchisors that prioritize franchisee success will stand out in the competitive market.

As a prospective franchisee, it's important to evaluate the level of support offered by a franchisor before investing. A well-supported franchise is more likely to thrive, even in uncertain economic conditions.

8. Diversity and Inclusion Initiatives

Diversity and inclusion have become critical components of modern business strategies, and franchising is no different. In 2024, franchises that prioritize inclusivity—both in their hiring practices and customer engagement—are expected to perform better. Consumers are more likely to support businesses that reflect their values, and franchise brands that embrace diversity in leadership, ownership, and marketing will appeal to a broader audience.

Additionally, franchisors are increasingly offering initiatives aimed at helping minority and underrepresented groups become franchisees, providing more opportunities for diverse ownership in the industry.

9. Franchise Sustainability During Economic Fluctuations

The global economy remains uncertain, and franchisees need to be prepared for potential economic fluctuations. In 2024, franchises that offer essential services or low-cost alternatives will continue to be attractive, as consumers may cut back on non-essential spending during times of financial uncertainty.

Recession-proof franchises—such as those in the home maintenance, healthcare, and affordable dining sectors—will remain in high demand. If you're looking to invest, consider industries that provide services people need regardless of economic conditions.

10. Mastering Work-Life Balance as a Franchisee

As more entrepreneurs seek better work-life balance, franchisors are adapting by offering more flexible franchise opportunities. Whether through part-time franchise models, work-from-home options, or semi-absentee ownership structures, franchisees in 2024 will prioritize business opportunities that allow them to achieve financial success without sacrificing personal time.

This shift toward flexible franchise opportunities caters to the growing number of entrepreneurs who want the benefits of business ownership without the demands of a traditional 9-to-5.

Key Takeaways

The franchise landscape in 2024 is dynamic, with new opportunities emerging as consumer behavior and business practices continue to evolve. Staying ahead of trends like sustainability, technology integration, and experiential offerings can help franchisees capitalize on growth opportunities and future-proof their businesses. Whether you’re an aspiring franchisee or an established owner looking to expand, keeping these trends in mind will ensure your franchise stays relevant and competitive in the coming years.