Published on 19/12/2021 by Any Business.Com.Au

After Weathering the Storms of 2021 Franchises Look for Smooth Sailing in 2022

As one year comes to a close and another is set to begin we inevitably look to the future for what it may hold for the industries or businesses we're involved in.

As with most small businesses this year, franchises were forced to weather a number of covid induced storms throughout 2021, which got us wondering how franchises actually performed and what 2022 looks like for what is normally a thriving niche in business ownership.

For the answers, we sat down for some Q & A with Lana Willard, Digital Marketing and Client Campaign Manager for leading franchise consultancy firm, DC Strategy.

Having grown owner-operated businesses into franchise chains, helping create over $2 billion in enterprise value for over 200 clients in the last decade, we felt Lana and DC Strategy were perfectly qualified to shed some light on franchising moving forward.

AB: How did the franchise market fair in 2021 considering the difficulties around covid enforced lockdowns and reduced consumer spending?

LW: The franchising market has seen a wave of ups and downs with covid restrictions and operating changes, however most businesses were able to adapt and segment their place in an evolving landscape.

Hospitality brands were able to change their business model to focus on takeaway and delivery while retail shops saw an increase in online orders. Essential business industries continued to see growth, while franchising sales continued to be steady over the year – with a big 2022 expected after increased vaccination rates across all states.

AB: Have you noticed any trends towards the end of the year as things have opened up?

LW: Retail and services have continued to grow, such as Poolwerx and Nurse Next Door. New franchise brands have also emerged after Covid, with Royal Stacks, Camy's Chargrill Chicken and Red Sparrow Pizza launching franchise networks.

Lifesize Plans also launched internationally and they have seen over 400 enquiries from around the globe – showing a strong appetite for franchising in other countries.

AB: Have there been any particular franchises that have thrived throughout 2021?

LW: Home care services and the businesses that were able to transform their business model into an agile system to cater for the ongoing restrictions and changes.

We also saw franchise businesses in WA thrive (Lollipop's) – as well as ongoing growth of South Australia and Queensland (The Yiros Shop).

AB: How do you think franchises will fair in 2022?

LW: With the increase in enquiries from September through to December, we should see a number of new franchises granted as well as multiple franchise brands launch their first franchise locations, such as Babyballers from the UK.

AB: Do you have any predictions as to what franchises are shaping up to do well in 2022?

LW: Food trends. We have seen a number of café and restaurant enquiries, along with an increase in Child Care franchise opportunities, with Little Zak's opening around 10 new locations in 2021. They will look to increase this in 2022.

Fitness and hospitality have also seen an increase in franchise leads in November – with a strong 2022 expected for a number of sectors – such as home services, rental businesses such as My Cabin Mate and co-working franchise business opportunities – such as IWG.

  • DC Strategy are the experts in assisting businesses to grow through franchising. Whether you own a business and are looking to start franchising, or are thinking of buying a franchise business, its team of expert consultants, lawyers and recruiters are there to help. Check out their website at dcstrategy.com

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AnyBusiness.com.au

Curtis is a leading expert in the business-for-sale industry, serving as a senior content creator at anybusiness.com.au.

With a career spanning over fifteen years, Curtis has accumulated extensive knowledge in the domain of business sales, acquisitions, and valuations. His deep understanding of market dynamics and his ability to translate complex industry jargon into accessible insights make him a trusted resource for entrepreneurs and business owners looking to buy or sell businesses.

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