One of the enticing aspects of investing in a franchise in the U.S. is how vast the opportunities are. The International Franchise Association forecasted that the number of franchise establishments will increase to over 15,000 units this year, bringing the total number of franchise units in this country to around 821,000 across a wide range of segments.

Because the franchise industry is so diverse, prospective franchisees will encounter various types of franchise systems: some have been established for decades, while others may have just opened for expansion. Then there are the franchises that fall in between, rapidly gaining momentum and expanding their network.

Franchise systems that are showing strong growth may catch your eye as you search for the right one for you, so we’ve outlined some of the benefits of pursuing them and why you may want to seek them out to learn more.

ESTABLISHED MARKET DEMAND

If a franchise business is expanding rapidly, it indicates a strong demand for its products or services in the consumer market. A business won’t continue to open new locations if there isn’t sufficient interest (you’d see more locations closing if that were the case).

High market demand indicates sufficient interest in the franchise business and that more locations are needed to meet this demand. It also demonstrates that the business model is effective across diverse markets, which helps validate its strength and effectiveness, as it appeals to a broad customer base.

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This is beneficial for prospective franchisees, as it suggests that they are entering a growing market rather than a declining one. It also shows that there’s an interested and established target audience, which helps minimize the time and effort required to launch products or services and build interest. For start-up business owners, this can be an area they often struggle with.

A PROVEN BUSINESS MODEL

Every franchise system develops a business model that it replicates across its network. The strength of this business model can often dictate how consistent the brand remains across different locations. When the model is not well-established, it could mean consumer interest wasn’t factored in when developing products/services, and it could lead to things going awry across locations, particularly if operational protocols are not closely followed.

When a business model has been constructed with market research and effective systems are in place, such as providing quality training, ongoing support, regular check-ins, and a detailed operations manual, the model can be successfully duplicated across dozens or even thousands of locations.

When considering fast-growing franchises, it’s reasonable to assume that the business model has been tried and tested and has proven to be successful, especially if the franchise business continues to open locations. If there’s a problem in the system, it often creates a ripple effect that impacts the entire franchise network.

STRONG BRAND RECOGNITION

Brand recognition is one of the most beneficial aspects of investing in a franchise.

You can think of a fast-growing franchise as a snowball, picking up qualities like strong brand recognition and consumer trust as it rolls and gets bigger. The quicker the franchise expands, the more it reaches a wider consumer audience, which can benefit the brand as a whole and likely means more consumers know about it.

If a fast-growing franchise maintains a strong brand reputation by ensuring consistent marketing, quality control, and a positive customer experience, it can build consumer trust. This is beneficial, as 88% of adult consumers globally consider trust important when purchasing from a brand, making it a top-three buying consideration.

For prospective franchisees, knowing the franchise they are considering is established and is continually growing can offer greater reassurance. A well-recognized brand typically leads to a loyal customer base, which enhances opportunities for building long-term customer relationships and generating profit.

COST-SAVING OPPORTUNITIES DUE TO ECONOMIES OF SCALE

As a franchise business expands its production scale, it can benefit from cost-saving opportunities, especially when there’s increased demand for products across its locations. As production increases, costs can often decrease, as franchisors can make purchases in bulk and negotiate prices for inventory or supplies from vendors, for example. Therefore, franchisees of growing franchise businesses could benefit from economies of scale because of the shared needs across a larger franchise network, creating fewer operating costs and greater profit margins.

FRANCHISING WITH DOGTOPIA

Dogtopia is North America’s fast-growing pet service franchise and leading membership-based dog daycare brand in the booming billion-dollar pet industry. We have established a proven system that sets our franchisees up for success, and we are always looking to grow our network. If you are interested in bringing a Dogtopia franchise to your dog-loving community, check out what sets us apart from other opportunities and how our unparalleled support can provide the stepping stones you need to succeed.