A new year has kicked off and our very own Gary Prenevost is here to share his latest insights with the entrepreneurial minded. As the market president and franchise consultant for FranNet serving Toronto, Ontario, and Quebec, he’s a frequent contributor to Franchise Canada Online, where he recently authored a new bylined article last month entitled, “New Year, New Trends.” As usual, his knowledge and advice are on point for those looking to franchise their way into business ownership.
Below, we track the highlights of his contributed guest article…
First, a Word on the Economy
Prenevost has been paying close attention to the pandemic’s effect on the average Canadian’s savings and investments. Thanks to his frequent interactions with entrepreneurs and other financially savvy professionals, he has some sage advice to share. Most of the people he’s come in contact with agree that most Canadians have been fairly risk averse over the past couple of years – allowing for a surplus of savings and discretionary income. But at some point, the dam will burst, and spending will skyrocket, much to the benefit of small business. Meanwhile, many high net-worth individuals and investors are keeping a close eye on enhancing their ownership portfolios, especially multi-unit franchise plays and semi-absentee opportunities.
Prenevost also gives his audience a look into what he sees as the red-hot franchise industries. While these are only prognostications, they reflect what Prenevost has noted from the data available, as well as what he’s seen on the ground.
First up? Home improvement franchises. In this sector, the industry growth rate tripled in the past few years, from 3% to 9%. And since many of these franchise opportunities don’t require a brick-and-mortar location, they’re often as much as 50% less of an investment compared to storefront franchises.
With the Canadian population continuing to age out of the workforce, the demand for services in the senior sector will continue to be up for the foreseeable future. But he cautions his audience to look beyond the facility type franchises to adjacent industries that support this target market, including residential maintenance, healthy meal delivery services and transportation concepts.
Still Gotta Eat…
The food industry maintains about a third of the available franchise inventory and he notes the surprising resilience of this particular sector, which was hit hard by the initial fallout from the pandemic. This industry has put innovation at the forefront of their strategy, much to the benefit of franchises in the specialty foods sector and ethnic concept categories.
Being the consummate professional, Prenevost makes sure to balance out his advice by pointing out that the franchising industry isn’t without its challenges. What might that include? Labour shortages, supply chain woes, and the rising cost of goods, materials, shipping, and delivery. While the economists and policy makers are doing their level-headed best to keep everything in check, sustained problems such as these may have an adverse effect on profit margins.
You can read Gary Prenevost’s full article here.
Thanks for being a fan of our FranNet of Canada bi-monthly blogs. We hope that the information we present is helpful, especially if you’re considering business ownership through franchising. If you’re ready to begin your entrepreneurial journey, FranNet of Canada can help you get started. With consultants serving every Canadian province, there’s a representative near you who also lives and works in your area. To find your local province consultant, simply follow this link and select “Canada” on the FranNet Franchise Consultant Directory page of our website.