Want to find out the latest trends in franchising? You might not expect it, but the best place to look is the Franchise 500 categories.
Here’s why: Every year, as we rank franchise brands, we sort them into categories. Some are familiar, like Sports Bars/Pubs. But as new types of franchises emerge, we create new categories to reflect them. For example, bars where customers can pour their own drinks have become popular, so instead of grouping them with Sports Bars/Pubs, they now have their own category: Self-Pour Bars.
In short, new trends lead to new categories, and these categories reveal where the franchise industry is headed. This year, along with Self-Pour Bars, we added seven more categories: Autism Treatment Services, Hawaiian Food, Hydraulic Hose Services, Mediterranean Food, Outdoor Space Construction/Remodeling, Pet Grooming, and Real Estate Investing.
What’s driving growth in these areas, and what does that say about the future of franchising? To find out, we spoke with leaders in four of these categories. Here’s what they had to say.
The Growth of Autism Treatment Services
Why are more autism treatment services appearing? The answer is simple: More children are being diagnosed with autism, but there aren’t enough providers to meet the growing need.
“There are not enough providers to meet the demand,” says Nichole Daher, founder of Success on the Spectrum (SOS). Her company’s centers use Applied Behavior Analysis (ABA) therapy to help children with autism develop communication skills and self-control. “Every single location has client waiting lists, whether in the city, in rural areas, or the suburbs.”
The biggest challenge? “Staffing is the only thing that can slow an ABA business’s growth,” Daher says. Since autism therapy requires one-on-one care, SOS franchisees must build a highly skilled and stable workforce. To help with that, the company partners with universities to offer tuition discounts and career growth opportunities. SOS also provides in-house certification and paid internships, which help attract and keep talent. As a result, it has one of the lowest turnover rates in the industry.
The Growth of Real Estate Investing Franchises
Real estate franchises have been successful for decades—just look at RE/MAX. But now, real estate investing franchises are growing quickly, thanks to a nationwide housing shortage.
HomeVestors of America is the largest franchise in this space. Its business model is simple: Franchisees buy homes—usually ones that need repairs or that sellers need to sell quickly—fix them up, and resell them. More than 80% of the homes they buy are under 1,400 square feet and built before 1980. That makes them ideal for first-time buyers, a group that is struggling to find affordable housing right now. “As we’ve continued to see builders scramble to accommodate first-time buyers, the houses that our franchisees are renovating have filled a critical gap,” says Larry Goodman, CEO of HomeVestors.
Economic shifts, like rising interest rates, have impacted real estate. But HomeVestors has remained steady by focusing on mid-priced homes, which Goodman says makes them “a little more insulated during the downturn versus those investors pursuing higher-priced property.”
The Growth of Self-Pour Bars
Ever thought about owning a bar? A new niche is taking off: self-pour bars, where customers serve their own drinks.
Self-pour systems have been around for over a decade, but they’ve become more popular recently. “As wages and labor expenses increase, self-pour systems offer a cost-effective alternative to traditional staffing,” says Michael Venditto, COO of Tapville Social, a major franchise in the industry.
Technology is also helping the trend grow. Self-pour bars use RFID-enabled taps and real-time tracking to improve efficiency for both customers and owners. The system also provides valuable data. “They provide insights for inventory management and enable personalized marketing through loyalty programs and mobile apps,” Venditto says.
Plus, customers enjoy the experience. “It’s an interactive experience that encourages group participation,” Venditto explains. “Friends, family, and coworkers enjoy sampling beverages together.”
The Growth of Hydraulic Hose Services
When a company needs heavy machinery, one of the first decisions is whether to use hydraulic or electric-powered equipment. Many industries—like construction, agriculture, and manufacturing—prefer hydraulic systems. As these industries grow, the need for hydraulic hose services grows too.
“Hydraulic systems are more efficient, less costly, and more predictable while remaining clean, sealed systems,” says John Dobelbower, vice president of development at PIRTEK USA, a leading hydraulic hose service franchise.
This industry is shaped by its customers’ needs. For example, “They’re often operating under tight timelines,” Dobelbower says. That’s why PIRTEK offers 24/7 mobile services for emergency hose replacements.
Customer expectations are also changing. Companies want to reduce downtime and improve efficiency, so PIRTEK offers maintenance and inventory management services to help prevent problems before they happen.
The Future of Franchising
These four categories—and the others added to the Franchise 500—show how franchising is changing to meet demand. Whether it’s healthcare, real estate, hospitality, or industrial services, franchises are finding new ways to serve customers and solve problems. The next big trend might be just around the corner.
