In this blog edition, we check in with our partners at FRANdata to seek some Q3 2021 insights about what franchise operations are experiencing an uptick in interest and which ones could use a boost. It’s all about their quarterly New Concept Report. These insights from FRANdata also track new franchise concepts by brand and industry.
Here’s what they reported for the third quarter of 2021:
How many new franchise brands launched according to the New Concept Report? A grand total of 85, spanning 18 different business industries. Most fell into the restaurant and hospitality category—especially fast-casual or quick service restaurants (QSR). In total, these account for almost a fifth of all new tracked franchise concepts. Many happened to be ethnic eateries, satisfying the curiosity of a growing legion of “foodies”.
Niche Health and Wellness
Following closely behind restaurants, health and wellness came in second, with 18% of all new brands in the third quarter of 2021. A common thread among these new franchise operations includes concepts that were the least impacted by pandemic-related cautions. One-on-one training and mobile fitness concepts led the charge, along with some emerging brands that fused alternative health regimens.
Approximately 44% of the new franchise brands in Q3 offer figures surrounding their unit-level topline performance. The average unit revenues (AUR) for these 38 concepts amounted to over $400,000 in 2020, and nine other concepts had an average revenue per unit that topped $500,000.
Approximately 83% of the emerging brands in the Q3 New Concept Report began franchising their operations in the past calendar year. Several of them project a rapid growth pattern through multi-unit deals. The report concludes by predicting that more than a few of these upstart newcomers will benefit from the largesse of their respective parent companies and other key partnerships.
If you’d like to investigate an emerging franchise brand or see what new concepts have come down the pike in the past calendar year, perhaps it’s time to begin an entrepreneurial journey of your own. We can help you get started today by setting up a no-cost, no-obligation appointment with a qualified FranNet representative who both lives and works in your area. Together, we can find a franchise ownership opportunity that matches up perfectly with your lifestyle and income-oriented goals.