In this episode, we discuss how the demographics of franchise buyers are changing, with the typical buyer becoming more upscale. According to a joint study by DePaul University and Francorp, Inc., new franchisees now have money, education, and business experience. The study reveals that 35 percent of new franchisees are professionals with management experience, 30 percent are nonsupervisory white collar workers, and 15 percent are blue-collar workers. Furthermore, over 40 percent of franchise buyers have a bachelor's degree, and the average income of a franchise buyer is $67,000, with a quarter of them making over $75,000.
We also explore the wide range of products and services that are becoming available in the franchised format. Industries such as medical services, general construction, and services targeted to help working mothers are experiencing significant growth. Additionally, training services, employee leasing firms, and businesses dealing with health and personal appearance are fast-growing segments in the franchise industry.
While the franchise industry has been relatively immune to business cycles, it is important for new franchisees to be cautious when choosing their business niche. With so much growth expected in the industry, it is crucial for franchisees to ensure that their chosen niche has sufficient product or identity differentiation to stand out in the market.
