There’s good news on the horizon, especially when it comes to buying a franchise
Welcome to a brand-new year! 2022 is here and resolutions, diets, and workouts are in full swing. Many people have resolved to make big moves and become business owners this year, but have been fearful of the uncertain climate. January 2022 has felt unpleasantly similar to the start of last year. Just in time for the holidays, Santa brought us a brand-new Covid variant and put a dark cloud over what many hoped to be a totally normal holiday season.
But it’s not all doom and gloom. Experts say Omicron will leave as quickly as it came. And there’s even more good news on the horizon, especially when it comes to buying a franchise. The economy is looking good and there are exciting franchise opportunities out there for every investment level and interest. If you have been putting off making a change, 2022 is your year. Don’t believe me? Here are 22 reasons to buy a franchise in 2022.
Economy, economy, economy
Inflation woes aside, there is a lot of great news to celebrate on the economic front.
- Unemployment rates fell to 3.9% last month which is a new low for the pandemic. At its highest rate, unemployment was 14.8% in April 2020.
- Supply chain issues are getting resolved and a holiday crisis was averted.
- Consumer confidence has increased and there has been no slowing in consumer spending.
- The G.D.P. is healthy. The Conference Board forecasts that U.S. Real GDP growth will rise to 6.5 percent (annualized rate) in Q4 2021, vs. 2.1 percent growth in Q3 2021, and that 2021 annual growth will come in at 5.6 percent (year-over-year).
- The stock market continues to hit record levels with the Dow Jones Industrial Average hitting record highs the first week of January of 36,952.65.
Spring will bring flowers and new franchise financial data
Every year franchisors are required to update their Franchise Disclosure Documents (FDD) within 120 days after the close of the fiscal year. As a result, figures and reporting for 2020 get pushed down and in many cases replaced with stronger and robust 2021 financial data.
The Great Resignation now includes CEOs
The pandemic has awakened a need in many to stake out a better life for themselves. Over 500,000 people have shifted toward self-employment during the pandemic and that number continues to grow. Franchising offers a great way for people to improve their lifestyles. Here’s why you should be excited about buying a franchise in 2022 over staying with your corporate job.
- You don’t have to be forced back into an office.
- You can reap the rewards of your own hard work.
- You can choose your own business culture.
- You don’t have to accept the status quo.
- You can find freedom and autonomy.
A franchise for everyone
With more than 4,000 franchises to choose from, it can be bewildering how to narrow it down to that perfect fit! The good news is that there are a lot of options, but there are also several ways to get your goals more in line with your needs and lifestyle:
- If you prefer working remotely, there are many work-from-home franchises to choose from.
- If remote work is too isolating and the comradery of a small team is more compelling, then light industrial office space franchises are great options.
- Prefer face-to-face customer interactions and moving around? You can choose from a plethora of mobile franchises.
- Investing in a brick-and-mortar franchise can be a great way to become a pillar of your community.
Trends have staying power
Looking at trends in franchising can give you insight into different business areas that you may never have considered. Some trends that started as a result of the pandemic have proven to show continual growth and can help steer your decision when buying a franchise in 2022.
- The home services industry rode the wave along with the housing market and never looked back. You may never have considered a home services franchise, but if you want a recession- and pandemic-proof business, it’s an area that’s worth a look.
- Pet care and children’s franchises are always in style since we will pay anything to make the furry and non-furry loves-of-our-lives happy.
- Food franchises with delivery, drive-through and touchless options have been busier than ever. Thanks to Covid, franchisors have made big investments in technology and franchisees reap the rewards.
- Boutique fitness has proven to be a healthy investment. Fitness was arguably the hardest-hit industry in franchising and yet its ability to pivot to remote was a saving grace. Additionally, customers like the community feel boutique fitness studios offer and prefer not to work out in the home. As a result, a certain bike stock has taken a dive.
- Truly passive concepts that have a management function in place to run the business have become very popular. They are perfect for those who are not quite ready to leave their jobs.
- Many franchises have built-in recurring revenue streams. Finding a franchise with this model is not hard and is preferred for those with strong financial backgrounds and a desire to see a stronger return on their investment.
Pandemic potentially shifting to endemic
Omicron’s arrival in the U.S. has been swift and has created great upheaval across the country and especially with our medical community. However, if other countries are a predictor, this variant will leave just as quickly as it arrived. The next few weeks will be a bumpy ride for sure but there is a real chance for masks to be an out-of-favor accessory once and for all! Bob Wachter, chair of the department of medicine at the University of California, San Francisco, recently predicted that by early February, we could be in a place where COVID is “like the flu with the vast majority of the U.S. protected through vaccines or recent infections.”
There are always unknowns, but most signs indicate that 2022 is going to be a great year to buy a franchise. If business ownership has been on your list of goals, then resolve to learn more about it. I am always happy to talk franchising. Feel free to contact me for a free consultation.
“If opportunity doesn’t knock, build a door.” ‒ Milton Berle