BOOMING SENIORS As the oldest of the 77 million baby boomers roll into their 60s, this influx will continue to pad the senior population, increasing to one in five U.S. residents by 2030, according to the American Association of Retired Persons. Considering the youngest edge of this demographic is already in their mid-40s, this is a segment that promises to have one of the longest life cycles. As is the case with their influence on many sectors of the economy, baby boomers are expected to be a driving force behind the franchise industry. Millions of them are retiring every year, with medical advances allowing them to live longer, more productive lives. The industry is capitalizing on this trend, with franchise concepts being launched to allow these retirees to enjoy themselves longer. CruiseOne, the No. 1 distributor of cruises in the world, Club 50 Fitness Centers, Golf Etc. and AmRamp, which sells and rents in home, modular ramp systems, are a few of the types of franchises that are part of the next trend in franchises. Se-
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nior care and services, both medical and non-medical, include brands such as Comfort Keepers, HomeInstead, HomeHelpers, Brightstar Healthcare and Interim HealthCare.
GEN X, Y AND Z At the other end of the age spectrum, franchises serving kids through education and enrichment programs are also turning out to be fairly recessionproof as parents continue to put their children’s needs ahead of their own. Supplemental education franchises for children continue to appear across the country, including the Tutoring Club and Tutor Doctor. Anything green is in, with companies like the Solar Universe and Pro Energy Consultants helping consumers become more energy efficient in their homes and offices, and the industry is expected to continue to create new opportunities for would-be franchise owners who want to want to get in on the increasing demand for green technology. Fast food franchises continue to be the leader in the industry with
McDonald’s still holding the No. 1 position. Overall, the food sector continues to be popular with old concepts being retooled and new concepts being launched all the time, Altiery says. TCBY, once the most popular frozen yogurt franchise, is now part of Mrs. Fields Famous Brands, which also owns the Mrs. Field Famous Cookies franchise. Since TCBY pioneered this sector, SpoonMe, Yogen Fruz, Red Mango, Pinkberry and Tasti D-Lite also have been popular nationwide. Mexican food franchises, such as Qdoba Mexican Grill, are expected to continue their popularity and Panchero’s Mexican Grill is being watched by industry leaders as the next one to make its mark. Although the availability of small business loans for start-up franchises continues to be challenging in light of the economy, Altiery says, it is expected to improve by the second half of the year. To help new franchisees get past this hurdle, some franchisers are coming up with creative solutions, such as waiving the first few months of royalty payments or discounting the ❑ franchise fee.
www.akbizmag.com • Alaska Business Monthly • March 2010