No one will question that 2020 is been a tough year for many businesses. Many had to shut their doors for a period of months, and some will never reopen. However, many have pivoted their business models to adapt, and we are starting to see the light at the end of the tunnel as more areas reopen.
Franchises have a distinct advantage over independent businesses in 2020. They have the collective intelligence of hundreds of business owners, plus an experienced franchisor with an MBA executive team. They can share ideas and respond quickly to challenges as they arise. They can also support each other, to help navigate the complexity of government support, and just to get through the tough times. As Walter Paton said, “We are stronger together than we are alone.”
I spent the last week meeting with over 60 different franchises, learning how they’ve adapted during the pandemic. It was full of surprises, to see how they’ve adapted and some are even thriving!
One residential cleaning company, backed by a billion dollar parent company, helped their franchisees apply for federal money quickly, before it dried up, to the tune of $700,000 per location. That’s a big cushion to get through the tough times, and much of that won’t have to be repaid!
A boutique fitness gym has already reopened 95% of their locations, some moving to outdoor classes. They didn’t have a single location permanently close its doors, though some of their independent and big box gym competitors have. They even opened new locations during the pandemic with record signups of 300-400 members before the gym even opened its doors!
One in-home tutoring company quickly pivoted to online tutoring, using software they had already been developing, and found an added benefit. Now different franchise owners can share remote tutors, helping save costs and cover when someone is out.
Another after-school enrichment franchise added a new program to teach children in small groups — their covid bubble. The client picks the group of friends and the location, and the franchise provides a safe program for the kids (and gives the parents a break for a few hours).
Some essential businesses like in-home senior care and home repair services have even seen an uptick this year. One brand has seen a 79% increase in appointments from 2019 to 2020!
So, this is not the end of the world for business ownership. It’s just changing times, and in fact it’s a great time to start a franchise business, as the independents struggle and close, and there are more retail vacancies.
If you’d like to learn more about these and other franchise businesses, let’s chat! I help people who want to learn about business ownership, but don’t know where to start, all at no cost and no obligation. Book an appointment, or contact me to set up a time that fits your schedule.
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