Yep, you read the title correctly. Some of you may ask: “What is he saying, franchising while the economy is experiencing a downturn is good news for the franchise industry?” Actually, that is exactly what I am saying. During the last economic downturn, the growth in franchise systems was strong. The reason is because franchising is counter-cyclical to the economy, allow me to explain.
History has shown that when people lose their jobs and/or their security is threatened, they turn to entrepreneurial thoughts. Remember, the perception of franchising is that it is “safe” therefore making it an attractive offer. Add on top of that, franchise concepts that are home-based and/or mobile requiring very little overhead expense and we have the ingredients for the perfect franchise sales climate. Smart franchisors understand the opportunities in a down economy and will take advantage of them.
Franchise expansion is the number one priority for new “start up” franchisors. There are many reasons why people decide to scratch their entrepreneurial itch, you just want to make that decision easy for them. If your franchise structure is tied to a franchisee friendly culture with a “We want to see you succeed” attitude and the franchisor exudes this passion then you have made the journey to franchise ownership that much more attractive, even in a down economy.
