The coronavirus pandemic has significantly impacted the US economy, with experts believing it has hit the economy worse than the Great Depression of the 1930s. With more than 33 million people filing for unemployment benefits, the unemployment rate has reached 14.7%, indicating the downward slope of the economic recession.
Businesses are facing unprecedented challenges, and decreased pay checks and layoffs have become the new trend. However, the franchising community has risen to the occasion, more determined than ever, with career options and opportunities for the people who dream for a better tomorrow.
With the industry motto “Be in business FOR yourself … but not BY yourself”, franchising is opening new doors for business ownership, promoting leadership, entrepreneurship, and innovative business models to individuals who want to explore business opportunities.
A New Appreciation for Franchising
The COVID-19 situation has compelled individuals to question their career options. If you have been furloughed or laid-off because of the pandemic, you may want to use your new-found freedom to explore franchise opportunities. You can take advantage of the shifting business model and promote your business while the economy stabilizes.
Instead of trying to get through the recession individually, franchisees have the advantage of receiving guidance and leadership from the franchisors.
Owning a franchise comes with its own set of benefits such as fewer operating risks than start-ups, a proven business model, proven repeatable, existing brand recognition, franchisor marketing support, the security of the business, and a greater chance at success.
Franchising is a viable option for people who wish to explore business ownership and take control of their careers, allowing them to achieve their lifestyle goals as well as their income goals.
Improved Business Models and More Opportunities
Many franchisors have altered their business models in an attempt to help new franchisees with discounted rates and new revenue streams.
To stay focused on long-term benefits, brands are reinforcing the interdependent relationship of the franchisor-franchisee by providing easier loan packages, additional grace periods, virtual meetings, and shared opportunities through technological innovations.
For the first time in history, tradeshows and exhibitions have gone online to engage with potential leads and aspiring business owners.
A recent survey conducted by Franchise Insights shows that over 55% of buyers agree or strongly agree that now is a good time to start a franchise business. Due to the nationwide lockdown, people now have more available time to venture out to unexplored opportunities and are optimistic about becoming successful entrepreneurs.
Being part of a franchise system encourages togetherness during this challenging time. Now is the time for franchisees to rally against the economic crisis and come out stronger and better.
The franchising industry is focusing more on the future of the franchise system, the well-being of its franchisees and customers. These are the times that test the franchisors, their ability to maintain a valued relationship with the franchise system while uplifting the story of the brand.
Since the pandemic, many franchisors have committed to helping frontline workers and small, local businesses. By providing business ownership opportunities to candidates who wish to pursue stable sources of income, there has never been a better time for investing in a franchise business.