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“The great refranchising,” pandemic won’t stop the franchise race

Word of order growth: this is the term that most identifies the franchising industry, which, after the boom recorded in 2021 with over 26 thousand new locations and an employment growth of 8.3% in the U.S. according to theEconomic Outlook Report issued by theInternational Franchise Association, continues on its path of development, involving more and more entrepreneurs looking for new professional stimuli. The first confirmations in this regard come from Franchise Business Review: according to what is indicated by the specialized portal, franchising is an advantageous career option for those who are looking for a career change. Becoming a franchisee, in fact, satisfies the needs of the individual entrepreneur to own a small business without being burdened by having to start a business from scratch. This trend is confirmed by another set of data reported by theInternational Franchise Association: during 2022, more than 792,000 new businesses are expected in the United States(+2.2% compared to 2021) for a total of 8.4 million workers employed (+4%). Now a question arises: what are the motivations to jump into franchising?

The motivations of franchising

The answers are provided by a report “The Value of Franchising” drawn up by Oxford Economics: what emerges in this sense is the desire of individual professionals to be their own employers(29%), but alsodissatisfaction with corporate careers (19%) and the desire to pursue their passions(16%). And again, in the U.S., 32% of survey participants are convinced that they would not have started their own business without the possibility of franchising. Further insights into this scenario are provided by, which makes a special ranking based on the level of development of each country: Australia, Canada, Israel and the United Kingdom are the places where thegreatest increase is expected. AndItaly? It belongs to the second band, the most moderate, together with Germany and Spain. Still on the subject of the Bel Paese, it is important to remember the latest data from Assofranchising, according to which turnover is growing(+3.5% compared to the pre-pandemic period ),employment(+4.8%) and affiliated points of sale(+1.3%). This is what emerges from a series of researches conducted on the main international newspapers by Z Padel Club, an innovative startup that wants to strengthen its brand identity with theopening of new clubs during the current year.

Franchising as self-employment

The general scenario is also analyzed by industry experts such as Bernardino Quattrociocchi, professor of Economics and Business Management at theUniversity of Rome “La Sapienza”: “The trend of franchising, after the boom of 2021, will be confirmed in 2022 thanks to the global economic recovery. Probably some sectors will grow more such as those close to services and products for the home, distribution, personal well-being or sports, considering also the generalized desire to return to physical activity. Franchising has always been a form of self-employment or development of new entrepreneurship, even in cases of exit from the working world as an employee. The advantages? Countless, starting from the social success linked to the development of an activity on one’s own and continuing with the creation of a new source of income. Among the fastest growing segments there are certainly those linked to current trends and phenomena of custom such as, for example, padel or other sports that allow you to socialize after the long period of pandemic. The growth margins are significant and very often the service to the consumer widens the difference between competitors”. Remaining on the same topic, Business News Daily confirms what was stated previously and, at the same time, also makes a list within which it is possible to discover which are the main industries in which the franchising business is developing more markedly: from spa services to hairdressing, from food to the management of proprietary brands to fitness.

Franchising to grow

But that’s not all, in fact, also Professor Nadia Olivero, expert in Consumer Marketing and scientific director of the Executive Master for the Management of Retail and Franchising Networks at theUniversity of Milan Bicocca, took the field, promoting her opinion. “Franchising is a business model destined to grow for several reasons, among which the opportunity of self-employment for people who are motivated but lack the necessary know-how to effectively undertake this path – Olivero states – The economic crisis is making it difficult for small retailers who cannot compete with the organizational, strategic and product capacity of big brands. This can be addressed throughaffiliation with franchisors that can guarantee optimal positioning. Franchising is a great opportunity to test oneself as an entrepreneur in a safer way, taking advantage of skills, services and resources that only large, successful companies can boast. Among the fastest growing segments is sports franchising, a sector with great potential that is still under-exploited. Not surprisingly, this sector too is now approaching the opportunity to organize distribution of products and services in a systematic and competitive manner. If franchises in the sports sector can meet the needs of consumers in terms of active participation, as through e-gaming, they will have interesting development potential. In this area, it is particularly important to study future trends and develop consumer services that can make a competitive difference.”

Franchising and sport

Franchisingand sport, sport and franchising: two tracks destined to cross each other more and more often. Another expert in the field, Marco Maillaro, one of the founding partners of Z Padel Club, an innovative made in Italy startup that winks at sustainability, also takes the field. “The global franchising industry is set to grow at an even higher rate than last year,” says Maillaro. The opportunities are countless and, as an entrepreneur, I can confirm at the forefront of this trend that involves many workers, who, not satisfied with their career, feel the need for a professional change. Franchising, in this sense, is a stimulating option because it offers the possibility to enter the field together with other professionals with the aim of developing innovative and futuristic projects together. Precisely for this reason our startup has chosen Telematica Italia as a strategic partner in order to guarantee also to future franchisees free analysis of the opportunities of non-repayable financing for thestart-up of new entrepreneurial activities or for theadjustment of business already in progress. One of the sectors involved in this trend is certainly the sports one: we at Z Padel Club, as a reality of the sector, we have decided to focus precisely on the franchise to further develop our network and give continuity to the project Z”.

Marco Maillaro, founding partner of Z Padel Club.

Remaining on the same wavelength, which sees the sport as a protagonist also in terms of franchising, here is an in-depth study made by theNBA website: the protagonists in this case are the Golden State Warriors who, together with a partner, have launched the “Franchise Fund” project. This is a support program that offers the opportunity to small and medium-sized companies in the area to grow both in economic terms and from the point of view of human capital, thus ensuring employment opportunities for the surrounding community. And again, according to 1851 Franchise magazine, theNFL is an important development opportunity for a number of franchises, particularly in the restaurant industry due to the ever-increasing number of fans following their favorites in the stadiums. And E-Sports? They certainly aren’ t standing idly by. According to Digital Journal, in fact, the exponential growth of the market, which will reach 6 billion in revenues by 2030, also derives from franchising thanks to companies that invest in the asset with the aim of obtaining greater visibility during the various appointments and international competitions.

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