At the turn of the 20th century, industrialization and the mechanization of production transformed America and other Western nations. The rise of factories, mills, and mines led to a surge in demand for skilled workers to operate machines and engineers to build them.
Today, industrial franchising is making a comeback as manufacturers continue to automate their production processes. Industry-related franchising has become a much more lucrative franchise opportunity than general manufacturing because there are many different niches within this sector that have yet to be fully tapped.
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What is an Industrial Franchise?
Industrial franchising refers to a business model in which a company (the franchisor) grants the right to use its brand and business model to independent entrepreneurs (the franchisees). Industrial franchises can be found across a wide range of industries, including manufacturing, telecommunications, computer services, and automotive repair.
While some industries are more conducive to franchising than others, there are no hard-and-fast rules. In this article, we’ll explore some of the most popular emerging industrial-related franchises as well as provide insight into what you should look for when researching potential industries.
1. Hydraulic Franchise
A hydraulic franchise is a business model that uses a hydraulic-operated press to produce a range of products, such as automotive parts and other machine components. Hydraulic presses are capable of producing large components such as axles, drive shafts, and engine blocks as well as smaller components like rocker arms and valve springs.
Hydraulic-operated presses are durable and reliable and require minimal operator skill, making them suitable for use in a franchised setting. Because hydraulic-operated presses are rarely produced on a custom basis, hydraulic-related franchising can be a lucrative enterprise. Hydraulic-operated presses are also available in a wide range of sizes, allowing operators to choose the press that is best suited to their production needs.
2. Auto Repairs and Services Franchise
The automotive industry is one of the most mature franchising sectors in the United States, with around 500,000 franchises in operation. While many automotive franchises focus on selling new cars, there are a number of niche markets that remain virtually untouched. One such market is structured around automotive repair, service, and maintenance.
A typical auto service franchise is a natural fit for franchising because they require a large upfront investment and operationally are not that different from the quick lube and oil change shops that have been franchising since the 1980s. These particular kinds of automotive franchises are also a good choice for entrepreneurs who want to enter franchising but are unable to find a suitable franchise opportunity in a different sector.
3. Phone Repair Franchise
Smartphones and other mobile devices have become an integral part of modern life, but that does not mean that they are immune to problems. Many people are reluctant to buy a new phone or repair their device because it is expensive or time-consuming.
Enterprising entrepreneurs are capitalizing on these frustrations by establishing franchised phone repair services. These businesses rely on a network of franchised locations and a supply chain that delivers replacement parts and tools to franchisees. Franchised phone repair shops can offer customers a variety of services, including screen repair, data recovery, and battery installation.
4. Manufacturing Franchise
Industrial franchising has been experiencing a renaissance in recent years, buoyed by advances in robotics, 3D printing, and other automation technologies. This is especially true of the manufacturing sector, which is undergoing a transition from traditional assembly line production to computer-driven, automated processes.
Industrial manufacturing operations are a good franchise sector to explore because they account for a large portion of the U.S. economy and are an inherently scalable business model. Industrial operations also require a substantial upfront investment, which can be difficult for a small business to obtain. An example of this is that there are a number of industrial 3D printing franchise opportunities you can choose from if you are planning to dive into this space.
Final Thoughts
There is no doubt that franchising has become a much more lucrative business model than it was 50 years ago. Because there are several distinct niches within this industry that have not yet been completely explored, industrial-related franchising has evolved into a far more profitable franchise potential than general manufacturing. With that said, every franchise opportunity is different and it is important to select the right one for you.