Top 10 trends that will shape up Franchising in 2024

The number of people investing in franchising is remarkable as they tend to gain financial freedom and to have more control over their professional growth. The franchise model has proven its success rate presenting a less risky mode to become a businessman, complete with training and support from a franchisor. In India, the franchising landscape witnesses a dynamic shift towards demand-driven sectors aligned with sustainability. Gaurav Marya, Chairman, Franchise India forecasts about the ten trending sectors which will surpass the others in 2024 and will grow exponentially in the years to come. Travel & leisure, skilling, F&B, fitness, digital franchising, convenience services, rentals, building materials, health centers, and green energy distribution emerge as pivotal sectors, reflecting a harmonious blend of consumer demand and eco-conscious practices.

Travel & Leisure

In 2024, the travel and leisure franchise landscape reflects a profound shift towards sustainable tourism and diversified experiences. Specialty travel franchises focus on niche markets, such as culinary tours or cultural immersions, catering to discerning travelers.

Home stays offer personalized and local experiences while prioritizing eco-friendly practices. Adventure franchises embrace nature-centric activities with a sustainability focus. Student discovery trips emphasize education, cultural exchange, and eco-awareness. Health resorts pivot towards holistic wellness and eco-consciousness. Theme parks incorporate sustainability practices and immersive experiences. Malls witness a surge in family entertainment centers and Miniplexes, catering to a diverse range of leisure and entertainment needs for conscious consumers in 2024.

Talking about success rate via franchise model, Jasmeet Singh, Senior Vice President & Business Head, MakeMyTrip – Holidays says, “The franchise model has been working in favor and has helped us achieve scalability. Our franchise business from both partner channels, franchisees & Women Holiday Experts contribute 70% in our business. So, it is fairly significant. From business contribution perspective, Franchising is helping us significantly. The franchise network expansion is part of our broader strategy to serve customers in the top 100 plus cities of India.”

Leisure and Entertainment too has gripped the franchising industry well. Juha Tanskanen, CEO SuperPark United from Finland is keen to expand in India. When asked about opportunities offered, he says, “In India we have selected 17 biggest cities where we easily see potential for 25-30 SuperParks in total. We would like to see these Indian parks to be operated by 1-5 main partners, but we are also interested to discuss with one-unit investors in some specific cities. We have built a 5-year timeline to reach these target numbers. We are looking at   investors, real estate owners and operators to find the best match when launching first SuperParks in India.”

Skilling  

 India emerges as a global skill capital, with franchise opportunities aligning with burgeoning demand and sustainability goals. Franchises offering future-focused programs centered on Artificial Intelligence (AI), Machine Learning (ML), and Cyber Security witness significant growth.

 These programs cater to India's ambition to excel in tech-based skills, aligning with the country's aim to lead in the global skills landscape. Sustainability factors drive the integration of eco-friendly practices within skill development, emphasizing green technologies and responsible business strategies. Besides Indian Skill development brands, many global giants too are eyeing the India market in this category. British training provider, Pitman Training has enabled 90+ centres in the UK, Ireland and internationally to provide vocational training, based on practical activity using live software. The brand has helped their students successfully complete over one million plus courses so far. Darryl M Simsovic, Chief Executive Officer, Pitman Training talks about the exponential demand of skills training in India and how the brand will tailor its franchise plan for India centres. “India is a booming market for skill training and we see huge untapped market pan-India. Our plans are to open Pitman centres across tier I, II & III cities with entrepreneurs who are keen to be part of the skill training industry in India. ”India's franchise sector prioritizes preparing individuals for the future job market, emphasizing innovative, sustainable, and in-demand skill sets, positioning the nation as a hub for cutting-edge expertise

Food & Beverages

The F&B franchise landscape is shaped by a dual focus on sustainability and evolving consumer demands. Food automation emerges as a key investment area, streamlining processes and enhancing efficiency.

 The sector experiences a surge in health-oriented Quick Service Restaurants (QSRs), dessert bars featuring innovative, nutritious options, and bakery-cafe concepts catering to diverse dietary preferences. Additionally, bars and nightlife venues emphasize sustainability through eco-friendly practices and locally sourced ingredients, aligning with consumers' eco-conscious choices. The industry sees a shift towards health-focused innovation and tech integration, creating a vibrant landscape for franchise opportunities in the food and beverage sector.

 Convenience Services

 In 2024, convenience service franchises will witness a surge in demand, coupling essential services with sustainability. Franchises offering cleaning, repairs, maintenance, and operational assistance cater to a market valuing convenience and eco-friendly practices. Sustainable practices, such as eco-conscious cleaning products and energy-efficient repairs, shape customer choices. People-centric services like home care for the elderly or childcare, emphasizing quality and reliability, gain traction. Subscription-based models for routine services further enhance customer convenience while promoting sustainability through optimized resource usage. Overall, in 2024, convenience service franchises prioritize efficiency, quality, and sustainability to meet the rising demand for essential services.

Rental Services

The rental services sector in 2024 experiences a surge in demand and sustainability focus across various fronts, spanning cars, furniture, and clothing. Franchises capitalizing on this trend offer flexible, eco-friendly options that align with the shift towards a sharing economy. Car rental franchises emphasize electric and hybrid vehicle fleets, coupled with subscription-based models tailored to diverse consumer needs. Furniture rental services thrive by providing quality, reusable pieces, promoting a circular economy. Fashion rental franchises flourish, offering designer wear and everyday clothing, reducing fashion waste. The rental market's expansion in 2024 revolves around accessible, sustainable, and convenient options, fostering a culture of mindful consumption.

 Home Construction & Supplies  (Building Material solutions ) -

In 2024, the home construction and supplies franchise sector in India will thrive on the burgeoning demand for sustainable building materials and innovative solutions. With India ranking as the world's 5th largest market for new housing, franchises offering eco-friendly construction materials, energy-efficient solutions, and smart home technologies will see significant growth. Home improvement stores emphasizing locally sourced, renewable materials, and affordable yet durable options will attract consumers. Franchises integrating digital tools for design, planning, and project management will cater to evolving consumer preferences. Overall, the sector's success hinges on meeting the demand for sustainable, cost-effective, and technologically advanced building solutions in India's burgeoning housing market.

Digital Franchising

In 2024, digital franchising opportunities center on omnichannel eCommerce with a social and promotional focus, driven by evolving consumer behaviors. Franchises harness data-driven marketing strategies across diverse online platforms, emphasizing sustainability through eco-friendly products and transparent supply chains. Social commerce integration, influencer partnerships, and personalized customer experiences define success. Franchises specializing in augmented reality (AR) and virtual reality (VR) shopping experiences gain momentum. Moreover, innovative payment solutions and secure, seamless transactions heighten customer trust. Talking about Digitalization as key to growth, Akshat Agarwal, Head of Business Development, McDonald’s India-North & East says, Digitilization is the key now, It is of utmost significance to be at par in the industry. We are increasing our focus on enhancing digital and app experiences that we have and are investing towards further building on the omnichannel experience for our consumers. At all our new stores, we are having digital self order kiosks, as its one of the fastest and very convenient ways for the customer to order.”  The emphasis lies in creating a seamless, engaging, and socially conscious online shopping journey, offering sustainable products while leveraging diverse channels for promotion and interaction.

Health Centres

The health centre franchising experiences a surge in demand and sustainability-driven approaches.  Polyclinics offering comprehensive medical services under one roof, ayurvedic centers promoting holistic wellness, and specialty clinics catering to specific health needs witness renewed interest. Franchises integrating cutting-edge technology for personalized healthcare experiences gain prominence. Moreover, a focus on sustainable practices such as eco-friendly facilities, wellness programs emphasizing mental health, and organic treatments align with evolving consumer preferences. These franchises leverage a blend of traditional healing methods and modern healthcare solutions, meeting the growing demand for diverse, sustainable, and specialized health services in 2024's competitive market.

Green Energy Distribution

 The franchise landscape within green energy distribution witnesses robust growth driven by escalating demand and a sustainability thrust. Franchises specializing in hydrogen, biogas, and electric distribution gain significant momentum, aligning with the global push towards renewable sources.

 Hydrogen-powered transport solutions and biogas facilities experience a surge, while franchises focusing on electric distribution and redistribution networks witness exponential expansion.

 Embracing innovative technologies and infrastructure for efficient energy storage and transmission becomes a hallmark. The emphasis remains on establishing scalable, eco-friendly solutions that meet growing energy needs while reducing carbon footprints, marking a pivotal shift towards sustainable energy franchise opportunities in 2024.

 Fitness

The fitness franchise landscape experiences a surge across all formats, emphasizing versatility and sustainability. Small boutique studios offering specialized training, such as HIIT, yoga, and personalized fitness programs, gain popularity for their intimate settings and community-focused approach.

 Large-scale gym franchises adapt by integrating eco-friendly practices, promoting energy efficiency, and emphasizing recyclable materials in equipment. Virtual fitness platforms offering on-demand workouts and live sessions see continued growth, catering to convenience and remote accessibility.

 Additionally, franchises prioritizing holistic wellness, combining fitness with mental health and nutritional guidance, emerge as sought-after destinations. Overall, the fitness franchise sector in 2024 thrives on diverse offerings, sustainability, and inclusive approaches to wellness. In 2024, franchising thrives in sectors aligning with demand and sustainability. Industries like travel, skilling, food, fitness, digital, convenience, rentals, building materials, health centers, and green energy distribution witness substantial growth. The convergence of consumer demand for varied experiences and sustainable practices drives franchise success across these sectors, promising a dynamic franchising landscape ahead.