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2022 Franchise Buyers: 3 Trends to Watch

by Seth Lederman

If you are ready to carve out a bit of employment stability for yourself, these are three trends to watch for when considering buying a franchise in the upcoming year.

Hidden in the gray cloud that loomed over us in 2020 is a silver lining for franchise buyers in 2021 and 2022. According to the Bureau of Labor Statistics, approximately 20% of all new businesses don’t make it past the first year, and by the end of five years, only about 50% are still operating. But those numbers are a whole lot different when you section off franchise startups. Surprisingly, franchise sales are weathering the storm, even as we head into a New Year of uncertainty. People fear that unemployment might be in their future, and are switching gears to find more security and freedom in their career path. If you are ready to carve out a bit of employment stability for yourself, these are three trends to watch for when considering buying a franchise in the upcoming year.

Trend One: Real Estate Deals

With many well-established businesses that are no longer profitable closing their doors during the pandemic, there will soon be an unimagined number of commercial real estate deals to invest in. Even if things return relatively to “normal” for the nation, the lesson learned by many small to large businesses is not only that people can be just as, if not more, productive remotely, but also the cost of commercial overhead is unnecessary. So even those businesses that are going to make it another year are reconsidering having a home base office brick and mortar. With so many ways to do things remotely, paying rent and expenses to keep shops open doesn’t make much sense for much of the business population. When surrendered, those commercial buildings will flood the market, and the prices will devalue quickly. That is a loss for the owners, but it can be a considerable gain for franchise buyers.

“It’s through curiosity and looking at opportunities in new ways that we’ve always mapped our path.”
-Michael Dell

Trend Two: Available Talent

The fallout from the pandemic on unemployment for the future is uncertain. Still, one thing is for sure, the beginning of the year was devastating for small businesses and large businesses alike. And that trickled down to the employees who quickly found themselves either without a job altogether or underemployed. The most successful franchisees are the ones that acquire and retain talent, which might have been more difficult pre-COVID due to a robust job market. While the economy is set to recover, hopefully, now is a perfect time to find those who will help to make your franchise profitable by dedicating their strengths to help your franchise grow and flourish. When there is less competition for talent, it is easier to come by, and you don’t have to outbid the competition by paying more than you should in employee wages.

“If a window of opportunity appears, don’t pull down the shade.”
-Tom Peters

 

Trend Three: Create Opportunity

In 2020, we saw millions of people lose their jobs or graduate from college into a tough job market. Some people will turn to business ownership as a way to build wealth, secure their future, and to create opportunities for themselves and their families. If you choose the right franchise to invest in, you can grow something that your entire family can reap the benefits from for generations to come. For those who have children who recently graduated or about to graduate, a franchise is an excellent starting point for both them and you. While they focus on making the franchise successful, you can expand to buy more or even switch gears to diversify. The point is that you can work as a family unit team to grow something that your grandchildren’s grandchildren can profit from for the long-term.

 

The Takeaway

The pandemic has undoubtedly had a disastrous effect on many lives, but as with many hardships in life, there is an upside for those who have an entrepreneurial spirit. 2020’s challenges have created many opportunities for those who seize the moment for 2022. The business forecasts for franchises in 2021 look as if a pandemic never happened, which is good news! With some strategic planning, not only is now a perfect time to go into business for yourself but never before has franchising given you an upper hand to success. For those looking for more security to build wealth, there is no better time than the present, so make 2022 your year to grow greatness.

Conditions are ripe for someone who is looking to switch paths and start on a venture to build wealth, not just for themselves but for generations. Because the economy is uncertain and job security in question, now is the most opportunistic time in history to take advantage and to take a chance to be your own boss and in control of your own destiny. 

DISCOVER A BETTER WAY TO EARN WHILE LIVING

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Tired of putting in hours of hard work while someone else benefits? You can earn money in a way that fits your lifestyle rather than the other way around.

In “Profits are Better Than Wages”, experienced franchise advisor, Seth Lederman answers the “how” and “why” of going into business for yourself.

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Assessments

What kind of franchise business will match your skills, experience, passions and even more important...your personality? Answering these questions now, will save you time and grief during your search.

Industry Guides

Learn about the various franchise industry segments, from Home Services to Beauty, and more. With nearly 4000 available franchise opportunities, understanding the pros and cons of the industries is crucial for a successful franchise search.

Events

Having helped hundreds of people get into business ownership through franchising, we are in a unique position to educate prospective franchise investors.

How-To Articles

On our quest to share the best in franchise information, we've developed a series of How-To articles with practical advice to move you forward in your franchise search.

Videos

View our collection of educational franchise videos for large investors and first-time entrepreneurs.

Blog

The FranBlog is a trusted digital publication, providing news and information that entrepreneurs and franchise investors want.

LEARNING CENTER
Basics

Are you sick of the 9-5 grind and actively looking for alternatives? Start with the basics of going into business for yourself.

Intermediate

Searching for the right franchise opportunity is like looking for a needle in a haystack. If you want to search smarter, not harder, check out the franchising insights and knowledge to get you there faster.

Advanced

You've decided to explore franchise ownership. Now, making it a reality with tips for vetting, funding and minimising the risk of your franchise investment.

Help Center

Do you have questions about investing in a franchise? Check out our comprehensive help center for answers. If you don't find what you're looking for, submit a question and our team will get back to you.

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