Which industries are franchising new concepts in the US?

Where is the franchise dollar being invested in the US?

Fast food is still taking the top slot, according to FRANdata, which registered 81 new franchise brands during the September quarter.

The organisation discovered that more than 60 per cent of new US franchise concepts in the quarter came from these five categories:

  • QSR (22%)
  • Health and fitness (14%)
  • “Sit down” restaurants (12%)
  •  Beauty related (7%), and
  •  Maintenance services (7%).

In other insights:

  • 15 of the new concepts were associated with a company that is already franchising other concepts.
  • 18 concepts were either mobile business or can be operated at home office.
  • 10 per cent of the concepts were Asian inspired.

The role of private equity continues in the franchising sector, with firms increasingly interested in smaller brands – including one acquisition with just four company-owned locations and three franchised units.