In our annual survey of SMBS also known as the Local Commerce Monitor (LCM)™, Wave 19, when we take a closer look at our industry segments, SMBs in certain vertical categories are more likely to be franchises. As shown in the infographic above, 1 out of 5 SMBs in the Financial Services vertical reported that they were franchisees. Half of the Financial Services SMBs who reported being franchisees or licensees own a single location. The International Franchise Association, in their 2016 State of the Industry Report, found that the personal services business line, such as financial activities, was the leader in the growth of new franchise establishments in 2015 and is expected to rank first again in 2016 with a 1.9% increase in the number of establishments.
Findings from this report will be highlighted at BIA/Kelsey BRANDS: The Brand-to-Local Marketing Summit, March 22, in New York. This one-day summit will examine the drivers of $61 billion in spending by franchise and brand marketers targeting local audiences, as well as the roles of agencies and adtech/martech companies.