We all have big questions about the economy. Are we heading into a recession? Are we already in one? How high can interest rates go? Will inflation cool anytime soon? How long will "help wanted" signs linger?
But in the franchise world, people are often asking this: Is now still a good time to buy a franchise?
Industry experts say yes-but your approach should be different than in boom times.
First, let's consider the emotional reality: "We have more people interested in owning and operating franchises, because they just don't have the same belief system in the old-fashioned, stable job," says franchise executive coach Rick Grossmann, coauthor of Franchise Bible. The pandemic caused many people to see long-term jobs as precarious, single streams of income.
As a result, many went into business for themselves. In the past year alone, some 83% of people surveyed said the pandemic accelerated their plans to start their own businesses. According to the U.S. Census Bureau, even after the wave of business creation in 2020 and 2021, corporate registrations were still above pre-pandemic levels in 2022.
Everyone seems to want more flexibility, resiliency, and control-and that's exactly what attracts many people to franchising. Plus, Grossmann says, a strong economy that started a few years before COVID hit-and a strong real estate market-have created a very qualified group of franchise buyers. "People have a lot of equity in their homes, and there are still people with money in the bank and good credit," he says. "It's a perfect storm for franchise ownership."
But that's not to say it's a gold rush, with people grabbing any opportunity they can. Quite the opposite: Industry insiders say they're seeing increasing selectiveness among prospective franchisees.
هذه القصة مأخوذة من طبعة Startups - Spring 2023 من Entrepreneur US.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة Startups - Spring 2023 من Entrepreneur US.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
Why Small Businesses Can't Afford to Grow
Big companies take a long time to pay their suppliers. Sometimes, so long that the supplier goes out of business. Two entrepreneurs wanted to find out why this system is so broken-and wound up creating a solution.
MY FAVORITE CUSTOMER
For small, independent businesses, loyal patrons are benefactors, protectors, muses, and mascots. They make sure the show goes on. Here, three business owners celebrate an irreplaceable member of their community.
Do You Say 'Yes' Enough?
We don't give ourselves enough credit for trying. So let's start doing it right now.
He Does $10 Million-Plus in Sales
When Jeffrey Bell gave up horse training to buy a Floor Coverings International franchise, he wanted to get out ahead of his new pack. To do that, he had to learn to delegate.
How This Business Rookie Became a Top Seller
After competing in two Olympics, Cammile Adams dove headfirst into her second career - and became SafeSplash Swim School's #1 franchisee. Here's how.
How to Pick the Perfect Franchise For You
There are a lot of great brands out there. But that doesn't mean they're all a great fit.
Serving the Underserved
When Dennis Johnson opened a Pizza Ranch in Minnesota, he hoped to serve the nearby Native American communities in more ways than one.
When Life Is Preparation
Vanesa Ellis was no expert on mosquitoes or lawn care. But as it turns out, something else made her the perfect fit for two home-care franchise brands.
Changing Careers? Consider Franchising.
Here are five reasons why franchise ownership could be the right fit for you.
WRANGLING THE MANY-HEADED MONSTER
For mom-and-pop business owners, just as inflation calms in one area of operations, it rears its head somewhere else. The best way to stay on top of it, experts say, is to stay flexible.