FR ANCHISING TRENDS IN 2022
Q&A: Franchising Looks Ahead
FranNet consultant Grant Bullington explores what prospective franchisees can expect in 2022, how franchising has adapted to the “new normal,” and advice for getting started in franchising BY GRANT BULLINGTON, FRANNET
Now that we’re moving into a post-COVID-19 world, what effects of the pandemic do you see playing out in the franchising industry? How has the pandemic changed things? As things slowly continue to return to normal, confidence will continue to ratchet up. Part of the confidence is how we’re internally processing the overall risk of starting a business. Doing so in the midst of the pandemic was generally reserved for the bolder investors. The thought of looking at opening a business now at some point in 2022 seems far less scary or ridiculous now when compared to the same thought in 2020 or 2021. Part of the confidence comes from the fact that we now have access to more data and history on how certain business categories performed in the previous year or more. Today’s prospective franchisee can make their decision by relying on hard evidence, which offsets the need to decide based on mostly forward-looking speculation (or guessing and hoping how they think things might unfold). Another aspect is that banks are lending again for start-up franchises. Not only does this allow you to invest in a business with more than your own investment dol-
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lars, but enhances the overall confidence that our rather conservative banking institutions are once again seeing the positive opportunities in the franchise industry. The pandemic has seen most people pause and reflect on their personal and professional lives—their goals, family, lifestyle, and financial objectives. For a lot of folks, it served like a wake-up call that change is in order. When it comes to careers, we’re seeing a big trend of people who are employed, or highly employable and in transition, that are redesigning their plans and looking for a business to be a better vehicle to get them to their adjusted plans (and enjoying the journey too). We’re not seeing the same surge of interest in franchising and business ownership that occurred during the Great Recession starting in late 2008. Back then, people invested in franchises to meet a need—a need to get back to making money and to look at business ownership thanks to the lack of employment opportunities. Nor are we seeing the “great resignation” play out with the same trends as in the U.S. Instead, we’re seeing a rise in people taking control of their careers and feeling confident to seriously consider franchising to meet a desire to live a different and better life than they were prior to COVID-19.
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