Current demographic trend in business franchise

Business is a world of unexpected, exciting things. Everything can change without giving us ‘appropriate notification.' If we look at 34th annual report Entrepreneur made about top 500 franchise companies, all evidences are moving toward one absolute fact: the world is preparing for a global business franchise. Since the last three years, Hampton Hotels have been ruling the list. However, if we widen the list up to 1000 companies, we will find out that there are at least fifty or even hundreds of companies that are rapidly competing each other in order to reach a better position than they currently have.


Among all businesses that have decided to run franchise mode, some companies choose to serve everyone. However, we still have many companies that put their preference at particular customer segment rather than serving everyone. From the following section, you can see the most attractive customer segment sales target

History records that within years since franchise chose children as its target consumer, various children franchises have recorded amazing success if we compare it to other franchises at other industries. Well, there is a relevant reason lies beyond this point. Some business consultants think that the reason is nothing than people’s choice in cutting their budget for secondary needs rather than their primary needs.
College preparation is an absolute source of profit for franchises that run their business on this niche. Tutoring, for example, usually becomes the most profitable niche, even though in 2013, it scored lower than its previous rate in 2012. At the other side, enrichment franchises choose to offer different products such as Lego, music education, art classes, and other similar products to children as they believe in the popularity of these items.

Seniors hold the second place as the most famous franchise demographic. A very interesting fact tells us that in 2013, Entrepreneur ranked at least 22 franchises which run senior car service within top 500 franchises list they made. Well, if we look at the history 20 years ago when senior-care business made its first appearance, this class has scored an astonishing achievement.
When we look to the number they have, there is one important fact we find. In 2013, it is most likely that elder population whose age is above 65 will reach about 17 percent of the country total population. At this rate, it makes sense when many companies choose this part as their target customer. Millions of people are looking for high quality senior care which gives quite a lot room for industries to grow. 


Within the last two years, Latino communities have become another attractive target customer of many franchise companies. Even though it takes only two years for this community to reach this position, statistic shows that the real trend started long before it. In United States, for example, this segment population has reached 52 million people in 1990. At its current growth rate, it is not impossible for them to reach at least 130 million people in 2050. The same thing applies almost at all countries throughout the world where Latinos live. 

Along with the rapid population growth, there is also a rapid business growth whose owner comes from this people part. Today, we have many companies from properties, automotive, insurance, and other industries which owner is a Latino. Since they come from the same part, these Latino owners thoroughly understand what their community wants, unlike other industries that failed to serve them the best just because they do not have sufficient knowledge. Well, the success also opens the way for the franchise. In US, Fiesta Auto Insurance and Tax made a breakthrough in business history by opening their franchise unit in 2006 which rapidly developed to about 90 – 100 units only within the couple of years. In Spain, we can find a similar example from Estrella, Listo, Pronto, and other franchise companies. These companies are still in relatively new age, but we should not ignore their capability in penetrating the market by gaining people’s trust. 

There are some rare occurrences at some places where more than 50% of franchise businesses offer special assistance or discount to every military veteran who is willingly to join their franchise. For most franchisors, providing this special treatment to veterans mean lower franchise fees than usual offer they give which will frequently reduce their business profit. However, they still honor their commitment in giving special offer to this segment. 
Jdog Junk Removal, for example, is a company that offers their franchise whether to veterans or military personnel who still serves his/her country. The business founder, Jerry Flanagan, who is also an army veteran, runs this idea because he believes that this particular franchise strategy will help the community in reducing disproportionately high unemployment rate the community is ‘suffering from,' among elders and veterans.


Besides social and personal reason, most franchisors believe that military veterans are precious resources that will make the company and bring the success to it due to their familiarity and determination with following strict system as well as their advanced leadership skills. International Franchise Association has begun the new culture in the franchise business by ramping up the association VetFran initiative. They call their own campaign as Operation Enduring Opportunity. In this battle, military veterans, their spouses, and wounded warriors become the only people part they have as their soon-to-be franchisees. Within only half a year, the campaign has recruited at least 3,500 military veterans and turned them as their new franchises. Throughout the world, there are many military veterans who do nothing after resigning from their unit. This condition offers you a vast range of potential resources for your business. They have already had all resources, skills, and experiences you need to build a successful franchise. Business knowledge about your franchise and how to develop it are the remaining inputs you should give to them. It saves your time while at the same time increasing your business productivity as well as efficiency.