Even though recessions cause economic hardship in general, franchises are relatively resilient to the effects. According to Entrepreneur.com, economic downturns can even benefit franchisees. If you’re considering becoming a franchisee, here’s why 2020 might be an advantageous time to do it.
5 reasons to become a franchisee in 2020
- You’ll have reliable, eager, and available workers, given the current rate of unemployment.
- You may receive better rates on rent for excellent retail locations, as many businesses are closing. This may free up prime real estate.
- You’ll have less competition. Many industries are struggling right now. Unfortunately, we are seeing many businesses file for bankruptcy. As hard as that is for the owners of those companies, it means there will be opportunities for others looking to invest in a franchise.
- You may receive incentives from some franchisors. Depending on how the market progresses, franchisors may offer temporary perks to enhance opportunities at with their system.
- You will have more control over your own destiny. Owning your own business comes with risks, however, being fired or laid off is not likely to be one. By becoming a franchisee, you gain control over your own destiny. In an economy like this one, that is highly appealing.
While investing in a franchise may seem like a risk in a bear economy, consider the rewards. Franchising surged in the recession of 2008, and history follows trends. Use this opportunity to your advantage.