Franchise Direct recently published its Business Services Franchise Industry Report for 2022. The report contains some notable data and insights for individuals who are thinking about buying business services franchises this year. Here are some of the highlights from Chicago franchise attorney Jeffrey M. Goldstein.
Business Services Sector Expected to Grow in 2022 and Beyond
According to the Business Services Franchise Industry Report, the business services sector generates approximately $950 billion in annual sales among both franchised and non-franchised businesses. Citing figures from FRANdata, the report indicates that there are just over 99,000 business services franchises operating in the United States, accounting for $95.3 billion in annual sales, or roughly 10 percent of the sector’s total gross revenue. This includes franchises in Chicago and other cities across the country offering services such as:
- Accounting and Payroll
- Advertising and Marketing
- Business Coaching and Consulting
- Commercial Cleaning
- Commercial Real Estate
- Employment and Staffing
- Equipment Leasing
- Printing and Copying
- Recycling and Waste Management
For 2022, the report expects modest growth within the business services franchise sector in three key areas: (i) franchised units (1.4 percent growth), (ii) employment (3.0 percent growth), and (iii) economic output (4.7 percent growth).
Certain Business Services Franchises Are Likely to See Increased Demand
Quoting FRANdata, Franchise Direct anticipates that certain segments of the business services sector are likely to see increased demand through the remainder of 2022 and in the coming years. For example, the report states that computer and IT services franchises have “benefitted enormously” from the shift to remote work during the pandemic, and that, “[t]he mailing, packing, and shipping segment is expected to continue to expand, mirroring consumers’ preferences for online ordering and delivery.”
The report also notes that franchises offering co-working space, recruiting services and virtual assistant services may be especially poised for continuing growth in the coming years—as companies continue to struggle with attracting full-time employees, and as the mass return to the office that many commentators forecasted in the earlier stages of the pandemic has not come to fruition as anticipated.
Should You Buy a Business Services Franchise in Chicago?
Given these forecasts and trends, should you consider buying a business services franchise in Chicago? As with any type of franchise opportunity, there are several factors to consider. While economics and market conditions are two critical factors, it is also important to choose a franchise that excites you and that you believe you can build into a successful business.
When it comes to choosing between business services franchise opportunities, there are several factors to consider here as well. From initial and ongoing fees to current and former franchisees’ opinions on the franchisors, making an informed buying decision requires comprehensive due diligence, careful planning and a clear understanding of the risks involved.
Discuss Your Business Services Franchise Opportunity with Chicago Franchise Attorney Jeffrey M. Goldstein
Are you thinking about buying a business services franchise in Chicago? We offer four tiers of fixed-fee franchise business review programs for prospective franchisees. To discuss your opportunity with Chicago franchise attorney Jeffrey M. Goldstein in confidence, please call 202-293-3947 or inquire online today.