Franchising On A Hot Streak

Kiplinger.com:

Franchises are expanding at a fast clip, despite the sluggish economy.

Senior care services are among the hottest new concepts, not surprisingly, given the large number of baby boomers who are heading into their golden years. These include Visiting Angels, The Senior’s Choice and Homewatch CareGivers, all of which are growing rapidly by caring for seniors who want to live independently.

Also popular: Fitness centers and spas catering in large part to boomers who want to keep fit and look as young as possible well into their 60s and 70s. Among the most profitable franchises this year are Snap Fitness and Massage Envy.

The ability to respond quickly to market needs is “the beauty” of franchising, says Alisa Harrison, a spokeswoman for the International Franchise Association.

A quick look at demographic trends shows why senior service franchises are so popular. By 2010, one in five Americans will be considered “senior,” and the number of Americans over the age of 65 will grow to 53 million by 2020. Moreover, average life expectancy has increased 15 years since the Social Security system was established in the 1930s.

Of course, entrepreneurs are trying out many concepts besides those focused on senior Americans. New franchisors are popping up everywhere – several hundred in recent years. Nearly half have more than 50 franchisees apiece, and one-third of them exceed 100.

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