Five Reasons Why The Franchise Industry Can Survive Tough Times
We are living in unprecedented times with challenges that we have never faced into before.
Covid-19 has changed how we works nd how we live, but that doesn't mean that there aren't opportunities out there. This is especially true in the franchise industry, as it is a sector that has repeatedly proven itself to be one of the most resilient out there.
Here are just some of the reasons why...
Turn to what you know
One key advantage of working as a franchise, rather than an independent business, is that you get to benefit from existing brand knowledge and loyalty. This is especially advantageous when economies are going through shocks, as customers with tight budgets are less inclined to take risks.
The above is a key element of why franchises are more resilient than your average independent own business.
Although Covid-19 is a unique situations, times of uncertainty are not. For instance, the global recession in the late 00s saw many franchises not only survive, but thrive.
The fact of the matter is that if you join a franchise, you are joining a system that has probably faced into problems before and if it's still around, it has probably overcome those problems too.
It is also likely that franchises will grow up from the roots of this issue and will prove that pressure makes diamonds!
Franchise systems are now offering supports that weren't in place previously due to the Covid-19 pandemic.
Thus, you will have supports that you wouldn't have if you were an independent business and your investment will be more resilient.
Keep measured spend
Independent businesses will have to cut their non-essential spend when times of uncertainty hits, but that's not the case with franchises. They need their businesses to do well, for them to do well.
They will keep marketing and PR spends that independent businesses will have to sacrifice.
New World = New Opportunity
We are currently living in a world that is full of moving pieces, where each new day brings new challenges. Of course, with these challenges, there are opportunities and chances for the world's great problem solvers to come to the fore.
Some of these problem solvers will end up franchising their idea or service, with the likely result being successful franchisees helping to service a new need in the near future.