by John Francis

Why Franchising Picks Up When the Economy Slows Down

Dec 8, 2020 9:00:00 AM Franchise Planning, Franchisees

The freedom of owning a business and having more control over your economic future - it’s an appealing and ambitious thought for many people. 

And it seems to hit many the hardest during tough economic times like these when layoffs start occurring on a more frequent basis and hard working employees suddenly lose their jobs. It’s in these moments that they realize their fate has been in somebody else’s hands the whole time - and that regardless of how hard they’ve worked, or how good of a job they did, they could be the victim of a company that was sold or forced to downsize.

It’s not uncommon for these newly unemployed individuals to want to take control of their situation by going into business for themselves. After realizing the vast options that exist in franchising - as well as the reduced risk and support that comes from joining an established organization - many look at franchising as a path to self-employment.

A Franchising Opportunity for Everyone

When you think about franchise opportunities, your mind may automatically go to chain restaurants and hotels. And while these are some of the largest, obvious and most well known franchise businesses, there are many, many others to choose from. From cleaning, to fitness to home repairs and pet sitting, there are almost endless opportunities and brand categories in franchising - at all investment levels. Some can even be managed right from your home office.

If you need help choosing the right franchise for you, there are professional franchise “matchmakers” who can help. These franchise consultants and brokers will walk you through the process to make choosing an appropriate fit franchise business as easy as possible. If you decide to work with one of these people, just make sure to do your homework first. There are no shortage of individuals offering this service, but not all of them are reputable and experienced. Like anything, some are better than others.... 

A Key Advantage of Franchising

As we talked about a few weeks ago, the collective horsepower of franchising gives franchisees an advantage in business - and this is especially true in tough economic times. Franchise brands typically have the ability to evolve more quickly and fix problems before franchisees are even aware that an issue exists. This collective collaboration exists at the store level, as well, with owners staying connected, brainstorming ideas and working together to get as much value from the system as possible.

We’ve seen this play out over this past year, with franchise businesses pivoting and innovating quickly in response to the COVID pandemic. From new techniques to new products and new delivery options, innovation came raging through the economy in 2020 and helped many franchisees keep the momentum going. 

In fact, while vacancies in shopping centers opened up due to independent owners having to downsize or close up shop, the spaces are being picked up by franchise brands that are continuing to grow - even through all of this insanity. 

The future remains bright, from my point of view. Certainly there are challenges and even the threat of more or increased regulations in the US with the new administration taking the White House and certain regulatory bodies - all this has an impact. What can YOU do? Stay informed, stay connected, and take ACTION to work together for everyone to benefit. Let me know if you’d like to talk or share ideas, anytime.

John Francis

Written by John Francis

About the Franchise Expert

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John Francis is an enthusiastic, engaging, and entertaining public speaker because he speaks from experience and he speaks from the heart. Franchising is in his blood, and his parents were true pioneers in the industry, turning their family haircutting business into a 1,000-salon franchise empire. He has been a franchisee and a franchisor, and has a deep understanding of the issues both face. Book John to speak at your event, and you and your franchisees will learn how to look at your business in new, positive, and profitable ways.

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