Franchise Industry Is Gaining Great Success In 2021
Written by Deepak Sah August 17, 2021
We all know how COVID 19 has created a job crisis in the country and impacted our health and economy as well. Let's not sugar coat and let's accept the fact that covid-19 has disturbed all businesses as a whole. Many became jobless because the maximum company reduced their workforce and many startups failed due to lack of support. In a pandemic, there is less demand and supply which resulted in the failure of many business Ideas because COVID 19 came out of the syllabus.No one was prepared for this pandemic, and the result we all have seen.
COVID 19 has affected the franchise industry as well and there is no doubt in it. The experts predicted a good growth rate of franchise business in 2019 and 2020. International Franchise Association in Feb 2020 also predicted that there will be decent growth in the franchise business and it will create more job opportunities. But suddenly COVID 19 came and it altered the prediction.
But the good news is that during the pandemic the franchise business was growing and there were many brands who expanded their business when the entire business was under lockdown. COVID 19 has impacted franchise business not only in a negative way but also in a positive way. There are many brands that handled this situation well and expanded themselves in this pandemic.
Let's look at some of the interesting statistics
The top two franchise industries outperform all others combined – For 2021, the top two franchise categories are personal care and travel. Personal care is projecting a rate of growth of 111 percent. Travel is projecting a growth rate that should range between 214 percent and 318 percent.
Size depends on the definition – The largest franchise in terms of revenue is McDonald’s. It currently brings in an average of $1,800,000 gross profit per restaurant. With over 38,000 restaurants, the franchise is the top earner on the planet. In terms of the number of restaurants, Subway operates over 41,000 locations, making it the most common eatery on the planet.
Top franchises are food – Although you can buy into any industry, out of the top-10 most profitable franchises, seventy percent are in the food industry.
The success rate is around 90% in franchise business which makes it the most preferable business.
35% of entrepreneurs started their journey through franchise business.
Let's discuss few reasons why franchise businesses gaining success in the current situation:
1.The motto of the franchise industry is “ Be in business for yourself, but not by yourself”.This motto of the franchise industry is clearly giving you a message of why the franchise business in India is gaining success and important in the current situation.
2.Job security: We all know how COVID 19 created a job crisis in India and the world as well and raised the unemployment level and the negative impact can be seen in the long run. But franchise business gives you job security and it also helps you in creating job opportunities in your area. This justifies the success of the franchise business in India.
3.Ease of funding: If you want to start a franchise business in India, the Government is helping many people and businesses to get the economy back on track. There are many programs like PPA (Paycheck Protection Program) the CARES act, loans guaranteed by SBA, and many other pandemic relief and recovery packages, and all these are helping and giving an opportunity to start a franchise business. Now banks have also reduced the tax rates and interest rates which means financing is much more affordable and feasible now as compared to the past and makes it easy to start a franchise business in India.
4.In a pandemic you are not alone: when you start a franchise business, you will get a solid team on which you can rely in uncertain times on. This is the power of this network. The team will share the best franchise business techniques and franchise business strategies to tackle the situation. This support system is not available in startups and in other independent businesses.
5.Easily availability of resources at low cost: When you start a franchise business you get connected with a larger entrepreneurial network. The benefit of this network is that you can get large volumes of resources at a low cost. And in this pandemic, these small things make a big difference.
6 Updated business model: In the pandemic, we have seen how different businesses changed their business model to tackle this crisis. Those who did not change their business models have suffered in this pandemic. We have seen food franchises going online and new pickup trends, education franchises created online learning classes, many fitness franchises giving onlines classes. So the biggest benefit of buying a franchise business is that you can get the updated business models to tackle the crisis. This is not available in startups and in any other businesses. This benefit makes franchise business a need in this pandemic
7.A good team-building: When you start a franchise business /buy a franchise business you get a good team to interact with. A small interaction session on zoom or any other platform gives you the opportunity to share your things and get advice from experts. This helps in building a good team and this is very important in crisis because it gives you support to carry your business with joy even in a pandemic.
8.Name recognition: When you start a franchise business /buy a franchise, you also attach yourself with that brand name which has marked its presence in many cities in India. Here you are getting the support of a national brand and this will increase the confidence of customers towards your business and this plays a very important role in a crisis.
All these factors contributed a lot to the success of the franchise industry and the future looks very progressive and It's a great way to start your business journey and in fact, you can turn it into a family business. You can visit franchiseBazar ( +91 9844443200 ) and can select the best brands to start your journey. One can also clear doubts from experts.
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