With businesses all over the country being affected by Brexit and COVID-19, it’s no secret that the majority of people have struggled this year. Dugan Aylen, the Head of Franchisee Recruitment at The Franchising Centre (TFC), has some guidance for people looking to take control of their future by investing in a franchise.
Recent statistics from the ONS show that 14% of UK businesses said they had low or no confidence that their business would survive the next three months1. However, the year TFC’s clients have experienced is a huge contradiction to these statistics. Receiving record numbers of enquiries for the range of franchise brands they support, the TFC team has watched their clients shatter their own records in terms of network turnover over the course of the year. Whilst it’s clear that franchising has proven itself a secure career path despite the world’s events, some sectors are certainly outperforming others. Here are my top 5 sectors to watch as we head towards 2021.
The home renovation sector
The home renovation sector is always a safe bet when it comes to franchising. UK homeowners spent an average of £4,035.70 on home renovation during lockdown2, meaning franchises in this sector have significantly benefitted in this home improvement spike. The Home Improvement Trend Report 2020 showed that 74% of homeowners wanted to do work on their house in 2020, 32% more than in 20193. So, there’s no surprise that this sector proved itself recession-proof over the course of the year.
Of course, there are some home improvement projects that a homeowner with tools just can’t do alone. Kitchen franchises like Granite & TREND Transformations proved profitable this year, which isn’t surprising when we see 71% of homeowners who looked to renovate their kitchen said they would need to hire tradespeople to do this3. Waste disposal companies like Junk Hunters capitalised on the home improvement trend, helping people remove their rubbish. And companies like Access4Lofts also benefitted over the pandemic, helping people to transform parts of their houses into spacious living spaces and safe storage areas. Home renovation is definitely a sector to watch in the new year.
The care sector
As has been the case for some time now, senior care is a growing market, but this year the service these franchises provide has been highlighted as even more essential. The care sector’s front-line services have been critical for the wellbeing of the UK’s ever-expanding elderly population during the pandemic. However, the demand for home care providers like SylvianCare is only set to increase. Statistics from Age UK show the population of people aged 65 and over will increase by 49% from 2017 to 2040. Additionally, nearly a third of people aged 65 and over live alone, while around one in 10 is ageing without children. The number of one-person households in England will also increase by 26% between 2016 and 20414. Because of the pivotal role the care sector has played during the pandemic, mixed with the UK’s growing elderly population, it’s no surprise that franchises in senior care will continue to be a great investment.
The commercial cleaning sector
After the important work the commercial cleaning sector has performed to ensure people remain safe at work, hospitals and other essential locations outside the home, it’s fair to say franchises in this sector are finally getting the recognition they deserve. Regular cleaning is playing a critical role in limiting the transmission of COVID-19, meaning businesses now have hygiene as a priority. Social distancing rules and regulations have seen cleaning companies being increasingly called upon to remove the grime and harmful bacteria in sectors like retail, education and healthcare, to name just a few. Commercial cleaning services like The Kleaning Company and JAN-PRO are playing a crucial role in ensuring these key services are delivered. Post-pandemic, it will remain essential for businesses to ensure employees are safe on an ongoing basis. Therefore, the professional corporate buyer will need to invest in cleaning for the long term. Commercial cleaning franchises will certainly be one of the big winners leading out of the pandemic.
The tutoring sector
Tutoring franchises like MagiKats and Choice Home Tutoring have been called upon to help fill the gap in children’s learning loss in 2020. With COVID-19 devastating the school system, having tutors who specialise in a range of subjects can help bridge the gap. By May this year, children had already lost 20 days of learning5. Putting this into perspective, 19 days is classed as persistent school absenteeism in a typical school year. There’s no doubt that this sector will be one to watch in 2021.
The outdoor sector
The outdoor sector appears to be fighting fit as we emerge from the second lockdown, as most outdoor services went almost untouched by government restrictions. For franchises like Greensleeves, a lawn care service, apart from not being able to sit and have a cup of tea with their customers right now, they are still able to provide the same quality lawn treatment. This year Greensleeves experienced fantastic success, with record-breaking months since June, seeing 2020 become the most profitable year for the company ever.
Countrywide Signs, who manage property sales boards, operate most of their service outdoors, they also benefitted from those who wanted to move home rather than renovate. Another example of success for the outdoor sector was Touchline who provide commercial surfaces with layouts for sports courts and health and safety markings. So many people discount franchises in the outdoor sector thinking that the weather impacts profitability but, if this year has proved anything, it’s that the outdoor sector is a much more sophisticated proposition than that.
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1 ONS, 2020, Business impact of the coronavirus
2 Money.co.uk, 2020, The 2020 Renovation Nation Report
3 Rated People, 2020, Home Improvement Trends Report 2020
4 Age UK, 2019, Health and Care of Older People in England 2019
5 OECD, 2020, The Economic Impacts of Learning Losses
