For many years I have written about franchising and how to franchise your business but I never imagined that I would be writing an article about franchising and the Coronavirus (COVID-19) pandemic. If you were or are considering franchising your business then you are probably questioning what impact this pandemic has had and will have on the future of franchising and franchising your own business.
As with almost all industries and small businesses, this pandemic is causing economic harm and has created uncertainty for franchisors and franchisees across the country. For sure, times are tough now and while health and safety is and will always be paramount, what we do know is that this will eventually pass and when it does there will be renewed and continued opportunity in the franchise industry and for new franchisors with good business models and founders. For business owners considering franchising, the question about franchising your business should, ultimately, come down to “when” and not “if”.
Setting aside the current circumstances, if you are evaluating if franchising is right for you read our article and watch our video about Should You Franchise Your Business. The same franchise assessment factors that applied before the Coronavirus pandemic also apply now (with the exception of a slight delay in timing) and will continue to apply after this pandemic. The franchise industry is not going anywhere and these unfortunate circumstances are creating opportunity for new franchisors.
Consider, the following:
- The franchise industry is not going anywhere and in times like these – times of crisis – more and more people are recognizing the strength of the franchise model and the interdependent and beneficial relationship between franchisor and franchisee;
- A shake-out is happening in the franchise industry and as this shake-out happens there will be opportunity for new franchisors;
- The economic effects of this pandemic will lead to disruption in industries and potentially increased franchise sales to the many individuals who will either lose their jobs or decide to leave corporate America; and
- The pandemic represents a significant disruption and opportunity for new and emerging franchise brands to tell a compelling story that allows them to compete with and, even, overtake more mature brands.
Ultimately, if (1) your business is successful, (2) you know there is opportunity to grow, (3) you can add good value for your future franchisees, and (4) as a founder and leader you have a desire to grow your brand and, over time, build an organization focused on win-win relationships, then even in the face of this pandemic, franchising remains an extraordinary opportunity for the future of your business.