Top 6 Trends of Franchising in 2016

Trends affecting Pet franchise Opportunity

Pet franchise opportunity in the U.S. market is immense. The industry was the only industry to prosper during the 2008 recession, but franchising as a whole is accounting for majority of the nation’s economy.

The franchising sector is crucial to the American economy.

The high volume and ubiquitous presence makes innovation and new trends appear regularly. For example, it was thought that food franchising would cap at speeds it was possible to serve consumers. The food truck trend has pushed speeds even further.

It is important for investors and entrepreneurs to maintain a knowledge of trends to stay competitive and have an edge in the sector. This article outlines trends affecting any pet franchise opportunity, and the franchising sector globally.

Technological Convergence and Development

New technology is great. Cutting edge software makes it easier for everyone in the business world. Technological additions like cloud computing and SaaS (software as a service) make it possible for more collaborative efforts, eases systematization, and increases productivity.   

Cloud computing is when companies focus software to be installed via the web, not company computers. This is one of the most significant tech pushes in franchising. The software is hosted by a singled secured environment, and is accessible from a myriad of devices a company might need.

Even small franchises are finding a need to develop more sophisticated systems. Investors in a pet franchise opportunity are finding that franchisors that provide advanced POS systems and terminal software that makes back office operations a breeze.

This is cornerstone for Splash and Dash Groomerie & Boutique. Software updates are constantly updated and training is always provided.

Increasing Minorities and Women in Franchising

In 2016, the glass ceiling has finally been shattered. Women and minorities who were turned down, or overlooked within corporate America, are finding a haven in franchising. Individuals with less capital and business experience are finding the means to professionally grow and own their own business through a pet franchise opportunity.

Good franchises provide support for those fed up with the barriers of the traditional work space. Splash and Dash Groomerie & Boutique has forged the path for individuals under this circumstance.

Rohit Aurora–CEO of Biz2Credit–offers this insight, “Minorities are going to become the majority in the next five to 10 years in terms of small businesses. They will keep contributing in starting, buying and growing businesses.”

This boosts the economy and will open more business opportunities for the future.

Internationalization of Franchises

Oversea markets have a high demand for American services and products. Many franchise experts agree that this trend is not subsiding. Countries abroad are willing to pay for Western investments, trademarks, and the packaged enterprise knowledge.

Over 400 franchises are currently operating internationally, including Splash and Dash Groomerie & Boutique, according to International Franchise Association. Internationalization is not limited to food franchises and has extended well into pet franchise opportunity.

The reason for this is because of the Franchise Trade Commission. This was a program under the U.S. commercial service that facilitates business deals for American companies abroad.

Globalization creates an open door to expand business into the international arena. This is key for business growth when U.S. territories become over saturated.

Crowdfunding Tailors into Franchising

Another trend deriving from the 2008 recession is crowdfunding. Crowdfunding was severed during the recession when traditional equity lines as a source of capital for franchisees became outdated. Today establishing capital or finding seed money can come from crowdfunding.

Crowdfunding is when start-up venturists, prospect franchisees, or inventors raise a fixed amount of money as loan, investment, or gift. This system expands the class of individual likely to invest in a small business.

A pet franchise opportunity found great success with this model in 2015.  A startup called TurboPUP gained recognition and capital by appearing on ABC’s Shark Tank.

As any franchise should, Splash and Dash Groomerie & Boutique stays updated on innovations such as crowdfunding and premiumization within franchise markets.

Multi Unit Franchise Ownership

In the past, franchisors wanted franchisees to focus on solely their brand. This has changed. Today, franchisors are more interested in multi unit owners who may even own franchises outside of their industry. The aim is for franchisors to partner with investors who are already an experienced operator.

Owning multi units allows expedite growth as pet franchise opportunity.

The Franchise Business Review stated that the median annual pre-tax income for multi unit shop owners was $88,000 with 29% earning more than 150K, and 16% earning over 250K.

11% of owners of single unit franchises earn more than 150K with 4% earning more than $250K.

A franchisor should encourage eager investors through the process of owning multi units, but also help to protect franchisees from overwhelming themselves.  

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Top Five Cities to Open a Pet Franchise

Where to Open a Pet Franchise

The business world is expanding. New York City and Los Angeles are not the only places to begin to go to business school, begin a startup, or open a pet franchise shop. Splash and Dash Groomerie & Boutique has been keeping their eyes on gold mine cities. The key is to find a city that is both experiencing rapid economic growth where pet lovers also live. Business professionals who love their Dobermans living in a thriving metropolis is what you should be looking for.

According to an American Pet Products Association survey, a record 65%, or 79.7 million, American households today own a dog. The number is also rising.

The August edition of Entrepreneur magazine released it’s list of The Best 50 Cities for Entrepreneurs. They teamed up with Livability and compiled a list based on entrepreneurial growth. Many of the cities also made another list. Wallethub compiles an annual list of 2016’s Most Pet-Friendly Cities.

Splash and Dash Groomerie & Boutique compared the two and made our own list. The top five best places to open a pet franchise. We based this list off a comparison between cities that are emerging silicon valleys, and places where pets can enjoy the best quality of life.

5 Seattle, Washington

  • Population: 637,850
  • Dog Parks: 33
  • Seattle University’s Albers School of Business and Economics
  • Business Growth Rate (2011-2015): 10%
  • Employment Growth (2011-2015): 9%

Just thinking of Seattle makes one taste the flavor of Starbucks. This city has become the mecca of coffee franchises like Tully’s Coffee and Espresso Vivace, but it also noteworthy for it’s pet-friendliness. According to the Seattle Times individuals with dogs spend averagely $752.20 a year on their pets.

4 Lincoln, Nebraska

  • Population: 265,811
  • Dog Parks: 2, 10 dog friendly attractions within driving distance of the city.
  • University Of Nebraska-Lincoln’s, College of Business Administration
  • Business Growth (2011-2015): 15%
  • Employment Growth (2011-2015): 14%

Nebraska is a prairie state where many families own dogs to roam the expansive Midwest lands. Lincoln is also home to University of Nebraska’s Center for Entrepreneurship. The city was also ranked in the Top 10 Best College Towns. The city also features a variety of assets for entrepreneurs like the Center for Rural Entrepreneurship and Southeast Community College Entrepreneurship Center.

3. Portland, Oregon

  • Population: 602,568
  • Dog Parks:36
  • Portland State University of Business Administration
  • Business Growth (2011-2015): 14%
  • Employment Growth (2011-2015):5%

Portland is home to divisions of Microsoft, Intel, eBay, and IBM to name a few recognizable names. The city has so many tech startups that is becoming another silicon valley. Business breeds business. Companies need third party supplies and logistic services. Portland also has a high number of citizens investing in their pets with high scores on their pet budget ranking. This progressive city is a fan of adopting business and “weird” trends.

2. Austin, Texas

  • Population:885,400
  • Dog Parks: 15
  • University of Texas McCambs Business School
  • Business Growth (2011-2015): 17%
  • Employment Growth (2011-2015): 3%

Big names like 3M, Apple, and Google all have a home in Austin. But the initial “small-guy” startup ups like Legalzoom and Indeed also began in the “Live Music Capital of the World.” Austin’s residents also love their dogs. According to their local paper, Statesman, Austin has over 7.2 million dogs. Austin alone counts for 9% of dogs owned in America, and is the 11th most populated city.

  1. Orlando, Florida

  • Population: 250,224
  • Dog Parks:9
  • University of Central Florida
  • Business Growth (2011-2015):17%
  • Employment Growth (2011-2015):3%

This city is Splash and Dash Groomerie & Boutique’s number one because it is number one it pets. Followed by an equally impressive number 15 in Business. This is strategic for those entering the pet franchise. Orlando is a city that has just begun it’s economical spike and will continue to grow. The home of the Orlando Magic ranks highest in pet budget rank, health and wellness, and outdoor pet friendliness. The Orlando Business Journal reports that 71% of residents buy their dog a gift with an averaging cost of $25. This hints that Orlando’s residents are pet lovers.

The City also hosts UCF’s Center for Entrepreneurial Leadership. Located in their Fashion Square is National Entrepreneurship Center. Other economical assistance are 1 Million Cups Orlando, IQ Orlando, and Backstage Launchpad, just to name a few.

Where the Pet Numbers Came from

The American Pet Products Association (APPA) 2016 Survey recorded the 100 largest cities based on 19 key metrics. The three categories measured were Pet Budget, Pet Health and Wellness, and Outdoor Pet Friendliness.

Pet Budget

  • Veterinary Care Costs
  • Minimum Pet-Care Provider Rate per Visit
  • Dog-Insurance Premium

Pet Health & Wellness

  • Veterinarians per Capita
  • Pet Caretakers per Capita
  • Number of Pet Businesses per Capita
  • Pet-Friendliness of Rental Market: Full Weight Pet-Friendly Restaurants per Capita
  • Pet-Friendly Hotels
  • Number of Pet Meetup Groups per Capita
  • Average Home Square Footage
  • Family Detached Households
  • Occupied Housing Units with One or Fewer Occupants per Room
  • Animal Shelters per Capita

Outdoor Pet-Friendliness

  • WalletHub “Weather” Ranking
  • Number of Dog Parks per Capita
  • Walk Score
  • Pet-Friendly Trails per Capita
  • Dog Shows per Capita

 

Where the Business Numbers Came From

Livability surveyed census numbers paired with key metrics to compiled from 22,000 cities. Trend analyst Matt Carmichael spearheaded the project based on these economic indicators:

  • Number of Business and Employees
  • Unemployment Rate
  • VC Deals in Last Ten Years
    • startups/Growth Equity Capital/Loan Capital
  • Business Tax Rate
  • Value of Small Business Administration and 7(a) loans
  • Business Tax Rate
  • Percent of Educated Professionals
  • Cost of Living
  • Commute Time
  • Accessibility to high-speed broadband
  • Projected Household Income
  • Population Increase between 2014 t00 projections to 2020.
  • “Leakage/Surplus”
    • Money Spent within the city limits or outside city limits