Ever thought of dabbling in franchising? We’ve got good news for you! Singapore's franchise industry is thriving, contributing SGD 6 billion annually to the GDP and employing 50,000 people.
The food and beverage sector remains popular. Fast food franchises like McDonald’s and Burger King are projected to grow 4.5% in market size over the next five years. Café and tea franchises such as % Arabica and Chagee are also on the rise, with the market expected to grow at a 2.8% CAGR from 2024 to 2028. Specialty food franchises (SaladStop! or Souperstar) and others catering to health-conscious consumers, are set to reach SGD 1.2 billion by 2025 :
In the retail sector, convenience store franchises like 7-Eleven, Cheers of (NTUC Fairprice) Co Ltd), and others are expected to grow 3.5% annually.
For those interested in exploring Singapore's underrated franchise sectors, here are some brief details for your consideration:
- Urban Farming: As environmental awareness rises, eco-friendly ventures like urban farming are gaining appeal. This particular sector caters to a growing consumer base that values sustainability and is less saturated than others. Startup costs are relatively low (SGD 10,000 to SGD 50,000 for urban farming), benefiting from Singapore's commitment to green initiatives and smart city infrastructure. Franchise opportunities include Edible Garden City and Grobrix.
- Health and Wellness, particularly Senior Care: Another emerging area is senior care services, with notable franchise businesses like Comfort Keepers and Active Global Home & Community, serving Singapore's ageing population. There is increasing demand for specialised home care and elder day-care services (nearly 1 in 4 Singaporeans will be 65 and above by 2030), making this sector a profitable but under-explored option. According to research, the industry is projected to grow at a 4.5% CAGR through 2028. Initial investments in this type of franchise range from SGD 20,000 to SGD 100,000, which is moderate compared to high-end franchise opportunities.
- Alternative Health Services: Health and wellness franchises like Ritual Gym and Orangetheory Fitness are projected to grow at a 5.6% CAGR through 2028. Wellness-focused businesses, such as yoga studios (e.g. True Yoga, Jal Yoga) are gaining traction due to heightened attention on mental and physical health post-pandemic. These ventures require relatively low startup costs (SGD 10,000 to SGD 50,000) and can generate steady revenue through memberships, workshops, and wellness product sales.
The service sector also offers diverse opportunities.
The global tutoring market is expected to reach USD 200 billion by 2026.
As Robert Stidham notes :
“Everywhere in the world, parents love their children. What are they investing in? Good economy or bad? Education, language skills, training. That space is incredibly exciting everywhere in the world”
You can find tutoring, enrichment, and early childhood education franchises like MindChamps and JustEdu mushrooming in Singapore. If these aren’t your cup of tea, you can also opt for cleaning and maintenance franchises that are set to grow 3.2% annually through 2026. Some of the franchises found in this category include Merry Maids and Wonder Wash.
When it comes to choosing a franchise sector, you need to consider market demand, initial investment, competition, and franchisor support. However, it’s also essential to determine whether you have the personality to thrive as a franchisee. Here’s some final advice from our guest franchising expert, Robert Stidham :
“When I think about a well performing franchisee, I tend to think in the context of 4 criteria :
- High intelligence, you've gotta be smarter than the average person to be successful in your own business
- You've got to have, frankly, capital
- You've got to have the ability to build and lead a team
- And very importantly, you have to have the ability to live in the construct of a system, a process following methodology and best practices. You don't want to buy a franchise and then come in and reinvent the wheel. The franchisor should have done all the work. They’ve proven the model, determined best practices, and then have the ability to teach, train, and support that. They don’t say : hey, here's a widget, go sell this and good luck to you. That's not a franchise”*
*Please note that some quotes have been edited slightly for clarity and flow
Do you shine within the framework of proven systems, or is your strength in disruption and innovation? Take some time to reflect on your personality and entrepreneurial style as you weigh the pros and cons of franchising.
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