5 Franchises You Want to Invest In
"The kid's business and the senior care businesses are always there. These businesses are not going to go away," Olson says.
Segreto agrees. Sun has "put together a very unique concept, one of the best in an industry segment that is beginning to show signs of saturation. Long term, I see some consolidation," but BrightStar is likely to be on the acquiring rather than consolidating side, he says.
He also gives accolades to BrightStar's growing management team. In December, the company brought on Brian Schnell, a well-respected franchise attorney, as its COO. "I think that says a lot about where the organization is headed," Segreto says.
Businesses that provide services and products to other businesses, more commonly referred to as b2b services, is another strong industry. Fastsigns , a 27-year-old company making signs, decals, digital prints and other custom solutions for businesses, has been able to adapt its services to a changing market.
The company has 530 locations in the U.S. and abroad.
While startup costs for a Fastsigns store that is not converting from another company average around $200,000, the company is doing its part to open up capital access to franchisees.
Besides co-sponsoring the International Franchise Association's Small Business Lending Summit (along with other companies) earlier this week, Fastsigns is one of several companies that partnered with The Bancorp (TBBK) and Franchise America Finance to offer an expansion financing program. Under the program, Fastsigns has a $6 million credit facility for startups and expanding franchisees, it says.
Fastsigns also rolled out a program to fund the conversion of independent shops to Fastsigns franchises.
"We have the highest
Segreto says Fastsigns has a very hot market that is going to be around for a long, long time within the industry segment.