Who Needs a Shop Anymore?

By Sean Goldsmith

Some of the fastest-growing franchise sectors no longer rely on expensive retail space. Increasingly, the business is coming to the customer instead.

For decades, success in franchising meant securing the perfect location. Today, brands such as Chem-Dry are proving that some of the biggest opportunities don't need a shopfront at all. They need a set of keys and a branded van.

For years, opening a franchise meant finding the right location. High streets, shopping centres and busy retail parks were where entrepreneurs wanted to be. If you could secure a great site with plenty of footfall, you were already halfway to building a successful business. It became one of franchising's golden rules, and for decades it worked.

I'm not convinced it's the rule that will define the next generation.

The more I look at where franchise growth is happening around the world, the more one trend keeps appearing. Some of the most exciting businesses aren't opening another shop or negotiating another expensive lease. They're buying another van.

That might not sound particularly glamorous, but it could be one of the biggest shifts happening in franchising today.

Whether it's home cleaning, plumbing, pest control, pressure washing, solar servicing, pool maintenance or mobile car detailing, a growing number of franchise businesses have realised they don't need customers to come to them anymore. Increasingly, the business goes to the customer, and consumers seem perfectly happy with that arrangement.

You don't have to look very far to see this happening in South Africa. Long before mobile service businesses became one of the fastest-growing areas of franchising, Chem-Dry South Africa had already built a successful network around a remarkably simple idea. Instead of investing in expensive retail premises, franchisees built their businesses around branded vehicles, travelling directly to homes and businesses to deliver a professional service. Customers weren't buying the location. They were buying convenience, expertise and trust.

Today, that same thinking is spreading into almost every corner of the service economy. Home maintenance businesses, plumbing companies, pest control operators, solar installers and mobile car care specialists are all benefiting from the same shift in consumer behaviour. Convenience has become one of the most valuable assets a business can offer, and increasingly customers expect the service to arrive at their front door rather than the other way around.

It's not just a South African story either. Around the world, brands like Neighborly in the United States, Jim's Group in Australia and Justlife in the UAE have shown just how powerful the home services model can become. Instead of chasing footfall, they're building businesses around recurring customers, efficient scheduling and the ability to take professional services directly to where people live and work.

When you stop and think about it, the economics are difficult to ignore. A branded van costs significantly less than fitting out a prime retail unit. There's no premium shopping centre rent to pay, no expensive shopfront to maintain and far less reliance on passing trade. Instead, operators can focus on building recurring revenue, growing their customer base and expanding by adding more vehicles instead of searching for larger premises.

That doesn't mean the traditional franchise model is suddenly outdated. Restaurants, cafés, gyms and convenience stores will always rely on great locations because the experience is built around customers visiting them. Nobody is suggesting the high street is disappearing, and there will always be businesses that need physical premises to thrive.

What this trend does suggest, however, is that the industry's definition of a prime location may be changing.

Supporters of mobile franchise models would argue they are perfectly positioned for the way people now live. Busy households increasingly value convenience over almost everything else, while businesses often prefer suppliers who come to them instead of expecting them to travel. The result is a growing number of franchise concepts that are designed around mobility rather than property, and that has the potential to reshape how future entrepreneurs think about investing in a franchise.

Of course, operating a mobile business brings its own challenges. Scheduling has to be efficient, customer service has to be exceptional and maintaining consistent standards across multiple vehicles requires disciplined systems and strong leadership. Success is never guaranteed simply because the business runs on wheels instead of from a shop.

Even so, I can't help feeling we're witnessing a quiet but significant change.

For generations, aspiring franchisees drove around looking for the perfect retail location.

Tomorrow's entrepreneurs may be looking for something entirely different.

Not the perfect shop.

The perfect branded van.

Because the future of franchising may not be waiting behind a shopfront.

It could already be parked outside your house.

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