The key to coping up with the pandemic – to the point where local companies in a country will seek new franchise investment – is the level of vaccination in that country. A group of World Health Organization experts says more than enough vaccines are available to cover everyone by the middle of next year if the doses are not hoarded by wealthy countries and are shared equitably with poorer nations which as of yet do not have them. Most countries are learning to live with Covid-19. The majority of countries are largely vaccinated and businesses are reopening. Where the vaccination rates are 70% or higher, business is coming back and local investors are expected to be open to new investments in 2022. Of course, vaccination issues, political and economic unrest can hamper new business development.
Assuming we largely get on top of the Covid situation by the end of 2021, here are some important things to expect in 2022r:
• Health/Wellness
o With the emphasis on wellness and staying healthy, franchises that focus on a combination of health and wellness are expected to thrive throughout 2022 and beyond. A post-COVID wellness boom is coming. As the world is beginning to reopen, people are seeking self-care and fitness. Franchises that focus on exercise and spa experiences are expected to do well, as are those that focus on the mental and physical wellbeing of their clients. Lastly, franchises that offer sports therapy are expected to maintain high popularity for people within this niche.
• Food franchises
o Out of the top-10 most profitable franchises, seventy per cent are in the food industry. Food franchises have been popular for 30+ years. We see the market dividing into a ‘good food for you’ model at one end, and a ‘not so good for you’ but tastes great model at the other end. The middle ground which is neither great-tasting nor good for you will struggle over time. Premises-based food will need to be very well known in their local community as customers increasingly resist travel and start supporting locals.
o Wheel-based restaurants or eateries see double-digit growth. these small operations such as hot-food trucks and pop-up cafes are more successful than a typical brick-and-mortar restaurant as the overhead is substantially lower. Consequently, in terms of market, food-delivery franchises can easily become a mainstay business for small towns that could not otherwise support a location-based business.
• Learning/Education
o If asked, a large segment of parents are not interested in returning their children to an environment where they can ultimately carry a virus back to the home. As such, home-education and parent-teaching franchises are expected to gain and maintain popularity. Franchises that provide exceptional learning aids and online learning solutions are beginning to thrive and are expected to be among the top performers of 2022. Tutoring franchises are also expected to experience increased popularity as some teachers are not expected to return to the classroom. It also includes home gyms, self-defense, virtual coaching, computer programming camps, and the like.
• Pandemic-safe franchises
o These are franchises that encourage social distancing. For instance, various RV and campsite franchises are experiencing amazing growth as people are attempting to take a break and have a breather from quarantine and pandemic. To remain safe, many families and friends are exploring nature and going to destinations that are away from the cities.
• Diversity
o Multicultural franchises will likely have a better chance at launching and thriving than non-diverse opportunities. This trend is because a broader cultural consciousness is evolving and the fact that people finally recognize that multicultural markets are largely untapped.
o In particular, franchises that can tap into the desire for ethnic cuisine while helping the environment and maintaining strategies to keep people safe from the pandemic will likely thrive throughout 2022.
• Home renovation and delivery as essential services
o The best businesses that focus on home renovation and delivery while accomplishing pandemic-safe delivery methods will trounce the competition.
For new businesses, the overall success rate is approximately 15 percent, which means one in six will eventually go under. However, this performance reverses itself for a franchisee. The average success rate levels out at approximately 90 percent, meaning that there are very few setbacks a franchisee will experience severe enough to cause the business to fail.
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